Minnesota Governor Tim Walz's administration is under intense scrutiny following revelations of extensive financial mismanagement, including a major COVID-19 fraud scandal and massive unemployment benefit overpayments.
According to Just The News, Minnesota lost hundreds of millions of dollars under Governor Walz despite warnings about widespread failures.
The nonpartisan Office of Legislative Auditor reported that the state's losses are now approaching $1 billion since 2019. These issues have come to the forefront as Walz was recently chosen as the Democratic vice-presidential nominee for the 2024 election.
During the pandemic and border crisis, Walz's administration increased government giveaways. In February, auditors warned of pervasive noncompliance with grant management policies within the administration. The warning set the stage for a series of financial scandals that would soon come to light.
A $250 million fraud in the Feeding Our Future program was uncovered just months later. This program was intended to provide meals to children during the pandemic, but several entities were fraudulently set up to siphon off funds.
The Minnesota Department of Education faced criticism for not adequately verifying sponsorship applications from high-risk applicants. Governor Walz acknowledged a lack of due diligence but stated that no state employees were involved in illegal activities.
"There’s not a single state employee that was implicated in doing anything that was illegal. They simply didn’t do as much due diligence as they should have," Walz said.
In June, federal prosecutors secured convictions for several individuals involved in the Feeding Our Future fraud. The fraud underscored the failures in the state's grant management and oversight processes.
The U.S. Department of Labor announced that Minnesota lost $430 million in overpaid unemployment benefits during the pandemic. This substantial loss added to the mounting criticism of Walz's financial management.
State House Minority Leader Lisa Demuth remarked on the prevalent pattern of fraud and waste, calling for accountability. "These are dollars that should be going to the people who truly need them, and those responsible for allowing this fraud and waste must be held accountable. Minnesotans deserve better than a governor who counts ‘not the worst’ as a victory," she said.
Former Congresswoman Michelle Bachmann criticized the administration's financial policies. "He increased spending in Minnesota in one year by almost 40% he had a surplus of $17 billion he spent every bit of that in one year, and he put Minnesota on a road toward constant tax increases," Bachmann stated.
An audit revealed that 41% of recipients from a Frontline Worker Pay program were unverifiable, with fraudulent payments also approved. The $250 million federal food program fraud could have been detected earlier if not for flawed verification processes.
Governor Walz's administration faced significant criticism due to financial mismanagement during the pandemic, including a $250 million COVID-19 fraud scandal and $430 million in unemployment benefit overpayments. Despite record-setting budgets and progressive programs, the administration struggled with pervasive issues of noncompliance and fraud. These financial controversies have become prominent as Walz was selected to be the Democratic vice-presidential nominee for the 2024 election.
