Johnson Demands Accountability After New Federal Fraud Charges in Minnesota

Minnesota Senate Republican Leader Mark Johnson is calling for greater accountability in state government following the announcement of new federal fraud charges tied to the state’s Housing Stability Services program.

On Thursday, Acting U.S. Attorney Joe Thompson revealed that eight individuals are facing federal charges for their alleged involvement in fraudulent activity connected to the program. The charges mark another high-profile case of alleged misuse of taxpayer dollars within state-administered services. Thompson’s office indicated that the cases are part of a continuing effort to investigate and prosecute fraud across programs designed to assist vulnerable Minnesotans.

The announcement came just one day after Governor Tim Walz signed an executive order creating a new council tasked with meeting monthly to discuss fraud in state programs. Walz said the council will serve as a way to improve communication and coordination across agencies, with the goal of tightening oversight and closing gaps that could allow fraud to occur.

Johnson, however, said the latest round of federal charges underscores what he views as ongoing failures in the administration’s approach. In a statement, the Senate Republican leader pointed to repeated scandals under Walz’s leadership, arguing that hundreds of millions of dollars have been stolen through state programs because of insufficient oversight.

“Today’s federal charges are yet another reminder that Governor Walz has not taken fraud seriously enough,” Johnson said. “Hundreds of millions of dollars have been stolen under his watch while people with real needs are left behind. His response? An Executive Order for ‘better communication’ between agencies that does little to address the scope of the problem.”

Johnson specifically criticized Walz’s decision to oppose Republican proposals for creating an independent Office of Inspector General. Senate Republicans have argued that such an office would provide necessary independence from the governor’s administration and deliver stronger investigative powers to combat fraud. Johnson said the rejection of that effort has left Minnesotans with little confidence that fraud can be properly addressed.

“Walz’s administration opposed Senate Republican efforts to create an independent Office of Inspector General, and now the consequences are clear: fraud is spreading across programs, and accountability is lacking,” Johnson added. “Minnesotans deserve more than press releases and symbolic gestures. Senate Republicans will continue to push for an independent OIG to tackle the widespread problem of fraud that is plaguing our government programs.”

Minnesota has faced a string of high-profile fraud cases in recent years. The most notable was the Feeding Our Future scandal, in which federal prosecutors alleged that tens of millions of dollars in federal pandemic relief funds were misappropriated through a nonprofit tasked with providing meals to children. That investigation, described by prosecutors as one of the largest fraud cases in U.S. history, has resulted in dozens of indictments.

The Housing Stability Services program was intended to help Minnesotans struggling to maintain stable housing, particularly in the aftermath of the COVID-19 pandemic. Prosecutors say the eight individuals charged diverted funds that were supposed to support tenants and landlords, exploiting weaknesses in program oversight.

Governor Walz has defended his administration’s handling of fraud prevention, noting that his executive order is part of a broader effort to strengthen safeguards and that state agencies have been working closely with federal authorities. Supporters of the governor’s approach argue that fraud in large government programs is a challenge faced by states nationwide, not unique to Minnesota.

Still, the issue has become a key political flashpoint in St. Paul. Republicans are expected to make government accountability and fraud prevention a central theme in upcoming legislative debates, while Democrats will likely continue to emphasize program reforms and administrative changes already underway.

The creation of the new fraud council, announced by Walz on Wednesday, is intended to bring together leaders from multiple agencies, auditors, and investigators to share information on a regular basis. Walz said the goal is to prevent cases from slipping through the cracks by ensuring state government acts as a unified front against fraud. Critics, including Johnson, remain skeptical that the measure will go far enough.

For Minnesotans, the stakes are high. Fraud not only diverts taxpayer resources but also undermines trust in public institutions. Programs designed to help residents with food, housing, and other essential needs lose credibility when cases of fraud emerge, making it harder to ensure resources reach those who rely on them most.

As the federal prosecutions proceed, pressure is mounting on state leaders to find consensus on stronger preventative measures. Whether through the creation of an independent Office of Inspector General, enhanced auditing practices, or the new fraud council established by Walz, the coming months are expected to bring renewed debate over how best to restore confidence in Minnesota’s ability to safeguard taxpayer dollars.