Senator Rasmusson blasts Walz Admin after OLA report highlights significant failures to stop Feeding Our Future fraud

On Thursday, June 13, the nonpartisan Office of the Legislative Auditor (OLA) shared its latest reporton the Minnesota Department of Education’s (MDE) oversight of the nonprofit Feeding Our Future. The report found MDE’s oversight of Feeding Our Future to be inadequate and that “MDE’s actions and inactions created opportunities for fraud.”

“During the pandemic, the Minnesota nonprofit Feeding Our Future claimed to be fulfilling its mission of providing nutritious meals to children,”Senator Jordan Rasmusson (R-Fergus Falls) said.“However, it came to light that the organization was involved in an enormous $250 million fraud scheme. It is appalling that individuals exploited hungry children for personal gain, and it is unacceptable that the Department of Education allowed this to happen. The agency’s failure to protect taxpayer dollars resulted in what is likely the largest COVID-related fraud in the nation.”

The OLA report had three themes:

  • MDE failed to act on warning signs known to the department before the onset of the COVID-19 pandemic and before the start of the alleged fraud
  • MDE did not effectively exercise its authority to hold Feeding Our Future accountable to program requirements
  • MDE was ill-prepared to respond to the issues it encountered with Feeding Our Future

 “We must hold the Walz Administration accountable for their severe lack of oversight, which enabled this massive fraud scheme to flourish. It is crucial to implement more robust measures to safeguard taxpayer dollars and prevent similar fraud in the future,” Sen. Rasmusson added.

This is not the only case of fraud that took place under the Walz Administration. Last week, a separate audit report showed the OLA could not verify about 41% of Frontline Worker Pay bonuses made in 2023, resulting in about $205 million in unverified payments. Previous OLA reports have found $3.5 million in overpayments through the RentHelp program, and millions of fraudulent dollars through DHS programs for child care assistance, adult day care centers, opioid treatment, and more.

The FBI-led Feeding Our Future case is still largely ongoing. However, on Friday, June 7, a federal jury delivered mostly guilty verdicts in the initial convictions of the fraud case. Five defendants received guilty convictions on most of the charges brought against them by the U.S. Attorney’s office. Two defendants received acquittals. In total, 70 people have been charged.