LIVE UPDATES | Minnesota Fraud: Walz, Ellison testify before House Oversight Committee

WASHINGTON, D.C. (FOX 9) - Minnesota Gov. Tim Walz and Attorney General Keith Ellison are testifying before the House Oversight Committee on Wednesday morning to face questions about alleged misuse of federal funds intended for social services and Medicaid programs.

The House Oversight Committee is holding a hearing at 8 a.m. titled, "Oversight of Fraud and Misuse of Federal Funds in Minnesota: Part II."

You can watch the hearing live in the player above. Find live updates below on the hearing below. 

8:04 a.m. – Hearing called to order

Rep. James Comer called the Committee on Oversight hearing to order and began his opening statements.

The Republican from Kentucky accused Gov. Walz and Attorney General Ellison of failures to control fraud.

"Today's hearing is about a failure of leadership, plain and simple," said Comer. "For years, Governor Tim Walz and Attorney General Keith Ellison presided over one of the most extensive breakdowns of oversight this committee has ever examined. Billions of taxpayer dollars were stolen from social service programs while warnings piled up. Whistleblowers spoke out, and state officials chose delay and denial over action."

Rep. Robert Garcia offered a rebuttal in his opening remarks, criticizing President Trump of waging a personal vendetta against Minnesota.

"This is really about not just what's happening in Minnesota through that operation, but the ways that President Trump has waged his own personal war on Minnesota instead of improving systems," said Rep. Garcia. "Instead of improving systems to prevent future fraud, Trump's also cut off $259 million in Medicaid funding to the state. He's threatened federal food aid for 600,000 Minnesotans, including 200,000 kids. President Trump has tried to use fraud as his excuse for all of this, but what's really happening is violence, terror, death, destruction and ripping away services from those that need it. You don't fight fraud by issuing presidential pardons to fraudsters. You don't fight fraud by ripping away food assistance to kids."

Fraud in Minnesota

The backstory:

Federal prosecutors have described Minnesota as a target of widespread fraud schemes in recent years, particularly within state-administered social services and Medicaid programs. Some federal officials estimate that the amount of taxpayer money stolen could reach as high as $9 billion.

However, others dispute that claim, and documented cases by the Department of Justice currently only have losses in the hundreds of millions of dollars, not billions. 

But, Republican lawmakers accuse Walz and Ellison of ignoring fraud warnings and retaliating against whistleblowers. 

The scrutiny comes amid broader federal action, including Vice President JD Vance announcing a temporary pause on more than $250 million in Medicaid funding to Minnesota over concerns about fraud and oversight. 

What they're saying:

In prepared remarks released ahead of the hearing, Walz acknowledged the seriousness of the issue while defending his administration’s record.

"There is undoubtedly more to do," Walz said in an excerpt of his planned opening statement. "We will continue to do the important work of combatting fraud. But as we do so, we will remain true to our principles. We will feed hungry children, help the poor afford healthcare, and assist people with disabilities, while also keeping fraud in check."

Walz has also accused the Trump administration of targeting Minnesota for political retribution. He is expected to outline steps his administration has taken to rein in fraud and strengthen oversight safeguards, while reaffirming the state’s commitment to maintaining access to critical services.