Trump official halts $5.5 million in Minnesota SBA aid, citing 'endemic' fraud under Gov. Walz's leadership in 2025 federal crackdown on welfare abuse.

An assistant U.S. attorney estimated that fraud in Minnesota's state-run Medicaid programs could exceed $9 billion since 2018. Gov. Tim Walz and state officials dispute this figure, suggesting it is politically motivated and lacks evidence. Gov. Walz acknowledged the fraud occurred on his watch and has taken accountability for fixing the issue.

Governor Tim Walz is under ever-increasing criticism for how his administration has handled rampant fraud in state-administered federal programs.

Federal prosecutors said the total fraud in Minnesota's Medicaid programs could be as much as $9 billion, but DFL Gov. Tim Walz and other state officials disputed that the amount of taxpayer money stolen is that high.

Federal prosecutors estimated fraud could potentially reach $9 billion in losses. State officials didn’t say the number was wrong and invited proof, but said they didn’t have evidence

On Friday, Walz accused the U.S. Attorney's Office of speculation after they claimed there could be more than $9 billion worth of fraud in Minnesota.

The scandal erupted after more than 70 people in were convicted over involvement with stealing hundreds of millions of dollars.

The Walz administration has been under scrutiny after a series of widespread fraud schemes targeting public programs in Minnesota.

Tim O’Malley, superintendent of the Minnesota Bureau of Criminal Apprehension under Gov. Tim Pawlenty, will serve as director of program integrity.

A massive fraud scandal is rocking her state, but Democratic Minnesota Rep. Angie Craig has been conspicuously silent.

The Governor, in his remarks, shouldered responsibility for the fraud that happened in Minnesota during his time as Governor, and for fixing the state’s oversight measures.