Fraud fight brewing in 2026 campaigns as investigations stack up

The words “waste, fraud and abuse” are primed to headline political ads and flyers in Minnesota next year, as Republicans and Democrats gear up to make it a central issue in the fight for control of state government.

Republicans are already highlighting fraud cases that have stacked up during DFL Gov. Tim Walz’s administration, as they seek to win back the office for the first time since 2006. The issue is also cropping up in races for attorney general, state auditor and the Legislature.

Some Democrats in those races have made fraud prevention a key part of their campaign platforms, recognizing the issue has become a liability for their party.

Fraudsters have stolen hundreds of millions of dollars from state-run programs in recent years, starting with the swindling of $250 million in federal funds meant to feed children during the pandemic — known as the Feeding Our Future scheme — to more recent cases in Minnesota’s autism and housing services programs.

“Tim Walz turned Minnesota into the fraud capital of the country. As governor, I will make it a fraud-free capital for America,” state Rep. Kristin Robbins said at a news conference Tuesday. The Maple Grove Republican launched her campaign for governor in August.

Walz’s administration has recently taken some aggressive steps to prevent more money from being stolen by shutting down the Housing Stabilization Services program amid allegations of widespread fraud and directing the Department of Human Services to review Medicaid provider data and close programs it deems too susceptible to fraud. Walz said last month that more fraud revelations could emerge as state and federal authorities investigate.

“You’re going to see more stories. You’re going to see more people going to prison,” Walz said while speaking at a festival organized by the news website MinnPost. He defended his administration’s response to fraud and slammed GOP critics for not offering more solutions.

Republicans think the fraud cases are a major liability for Walz as he runs for a historic third consecutive four-year term. They’ve long criticized the Walz administration for its oversight of taxpayer funds, and fraud cases have continued to pile up.

Robbins, who chairs the House Fraud Prevention and State Agency Oversight Committee, said she would support establishing an independent Office of Inspector General in the executive branch.

Republicans and some Democrats have said Walz’s administration was ambivalent about a proposal to create an independent Office of Inspector General to root out fraud in state programs. The proposal passed the state Senate earlier this year but not the House. Walz’s office favored having inspector generals embedded within state agencies, a spokesman said.

“We would take a comprehensive look at every agency, top to bottom, and make sure that basic standard internal controls are being followed,” Robbins said.

Minnesota’s nonpartisan legislative auditor has repeatedly flagged some agencies for having inadequate internal controls. Legislative Auditor Judy Randall said last year she felt state agencies were becoming more dismissive of audits critiquing their work.

Jensen, who won the party’s nomination in 2022, said he also would foster a more vigilant culture within state government.

“We need to create a culture within government that says … ‘You are responsible for keeping your eyes and ears open, and if you see something that doesn’t seem right, say something,’” he said.

The GOP is also trying to use the issue against Democratic Attorney General Keith Ellison. In a statement announcing his candidacy for the office, Republican attorney Ron Schutz said “our state has been harmed by leaders who are soft on crime, who have allowed a culture of fraud to infect state government, and who have demonized our law enforcement officers.”

Ellison hasn’t yet said if he’ll seek re-election. He’s touted his office’s efforts to help investigate fraud and partner with federal law enforcement as more people have been charged.

In other down-ballot races, Democrats are being as vocal as Republicans about wanting to stop fraud.

Wolgamott has said he also would create an anonymous tip line for Minnesotans to report suspected fraud to the Auditor’s Office.

Nat Smith, a Stillwater Democrat who’s running for state Senate, said he has fought fraud and represented whistleblowers in his career as an attorney. He said the state needs to do more to prevent fraud on the front end.

Smith, who’s seeking the seat currently held by GOP Sen. Karin Housley of Stillwater, said he supports creating an independent Inspector General’s Office and strengthening Minnesota’s False Claims Act. The seat could be a battleground in next year’s fight to control the state Legislature.

“It’s something we need to address and do better on,” he said.