Minnesota Governor Tim Walz is responding to growing concerns over fraud in state-funded programs following an FBI raid on the state’s Housing Stabilization Services. The program, which supports housing for older adults and people with disabilities, is under scrutiny after investigators executed search warrants at eight sites connected to five Twin Cities providers accused of billing for services they never delivered.
“If you’re going to commit these crimes in Minnesota, you are going to get caught,” Walz said in a WCCO interview. He emphasized the state’s new safeguards against Medicaid fraud, including the appointment of a new Inspector General and calls for advanced tools like AI to improve oversight. While Walz acknowledged the potential for abuse, he defended the state’s generous support systems, saying bad actors must not undermine them.
Acting U.S. Attorney Joe Thompson called the situation part of a broader problem, echoing concerns from his predecessor about systemic vulnerabilities in Minnesota’s social service programs. The FBI described the housing program as “extremely vulnerable to fraud,” with search sites located in St. Paul, Roseville, Blaine, Little Canada, and Woodbury.
Republicans were quick to seize on the scandal, calling it another example of lax oversight under the Walz administration. Rep. Kristin Robbins (R-Maple Grove), chair of the House Fraud and State Agency Oversight Committee, labeled the situation an “enormous failure.” She accused the administration of expanding Medicaid services without proper regulation, allowing fraudsters to exploit the system and divert millions meant for vulnerable Minnesotans.
This case adds to a string of high-profile fraud investigations in the state, including the Feeding Our Future scandal and issues at autism service centers. These incidents have intensified bipartisan calls for stronger accountability measures within state agencies.
Separately, Governor Walz publicly thanked President Donald Trump for his support following a tragic school shooting in Minneapolis. At a press conference, Walz praised local and federal officials for their response and expressed gratitude for Trump’s call, offering condolences and federal assistance after the tragedy, which left three dead and 17 injured.
