A sweeping federal investigation is now targeting alleged fraud within Minnesota’s social services programs, potentially reaching billions of dollars. The House Committee on Oversight and Government Reform, led by Chairman James Comer, is demanding answers and documentation related to the handling of state funds.
The inquiry stems from a recent audit revealing significant deficiencies within the Minnesota Department of Human Services (DHS). Specifically, the Behavioral Health Administration reportedly failed to comply with most grant requirements and lacked sufficient internal controls over crucial funding.
The audit, covering grants issued between July 2022 and 2024, paints a troubling picture of oversight. It suggests a systemic vulnerability that may have allowed for widespread misuse of taxpayer money intended for the state’s most vulnerable citizens.
The committee has formally requested a briefing and all related documents from Minnesota’s Legislative Auditor, Judy Randall. They are seeking a complete understanding of the audit’s findings and the state’s response to the identified issues.
Further escalating the pressure, the committee has also summoned Shireen Gandhi, the temporary Commissioner of the Minnesota DHS, to provide testimony. A transcribed interview is scheduled for January 30, 2026, with a stern warning of potential compulsory measures if she fails to appear voluntarily.
This investigation gained momentum following a widely circulated report by independent journalist Nick Shirley, which brought the allegations of fraud to national attention. Shirley’s report detailed claims of an estimated $9 billion in stolen funds.
These stolen funds were earmarked for critical programs: feeding children, supporting individuals with autism, providing housing for low-income and disabled Americans, and delivering healthcare to those relying on Medicaid. The scale of the alleged theft is staggering and deeply concerning.
The committee’s press release asserts that criminals exploited these programs, diverting resources away from those who desperately need them. The investigation aims to uncover the full extent of the fraud and hold those responsible accountable.
The focus now shifts to the documents and testimony sought by the committee, which are expected to reveal the details of the alleged scheme and the failures that allowed it to occur. The outcome of this investigation could have significant implications for the future of social services funding and oversight in Minnesota.
