Gruenhagen: Two scathing Walz admin fraud audits

Friends and neighbors, 

This week we received two scathing reports on fraud of taxpayer programs that have occurred under the Walz administration. These reports expose widespread mismanagement, lack of oversight, and failures to prevent theft of money intended to help Minnesotans in need. 

The first report details the shocking level of fraud surrounding the Feeding our Future program, which was supposed to provide meals to underprivileged children during the COVID-19 pandemic. The second report uncovers significant issues with the Frontline Worker Pay Program, which was meant to compensate essential workers who risked their health during the pandemic. 

Feeding our Future Fraud Report 

Read it here: https://www.auditor.leg.state.mn.us/sreview/pdf/2024-mdefof.pdf 

This audit revealed the Minnesota Department of Education’s (MDE) complete failure to prevent the exploitation of federally funded nutrition programs, leading to a staggering $250 million fraud scandal.  

Key findings include: 

  • MDE’s inadequate oversight allowed the widespread fraud to occur, despite numerous warning signs and serious concerns raised over several years. 
  • MDE ignored multiple red flags before and during the pandemic, failed to investigate numerous complaints thoroughly, and inappropriately tasked Feeding Our Future with investigating complaints against itself. 
  • MDE repeatedly approved Feeding Our Future’s applications without verifying crucial information, despite identifying serious deficiencies in their operations. 
  • Despite finding Feeding Our Future seriously deficient on two occasions, MDE did not ensure corrective actions were implemented, allowing the organization to continue its fraudulent activities.   

Frontline Worker Fraud Report 

Read it here: https://www.auditor.leg.state.mn.us/fad/pdf/fad2403.pdf 

The audit of the Minnesota Frontline Worker Pay Program revealed several serious issues of noncompliance and administrative failures, including: 

  • The Department of Labor and Industry (DLI) and the Department of Revenue (DOR) approved frontline worker payments to numerous applicants who were not eligible 
  • 40% of payments went to individuals who were either not eligible or whose eligibility could not be verified. 
  • DLI primarily relied on self-attestation from applicants to verify eligibility. DOR did not verify the adjusted gross income (AGI). Both resulted in numerous fraudulent claims. 
  • DLI approved payments to individuals whose applications contained clear fraud indicators, such as the use of high-risk bank routing numbers and disposable email domains, but failed to adequately investigate.   

These reports confirm the Walz administration’s complete and utter failure to prevent widescale fraud and abuse of taxpayers. Governor Walz and the Democrats bear full responsibility for allowing fraud to happen over and over and over. 

You deserve transparency, accountability, and assurance that your hard-earned tax dollars are being used responsibly and effectively. That is not happening right now. We must demand immediate changes like better oversight and transparency, as well as consequences to prevent fraud from happening again in the future.  

If you have any questions, please reach out. 

God Bless, 

Glenn