U.S. Senator John Cornyn (R) joined the entire Senate Republican Conference in sending a letter demanding accountability from outgoing Minnesota Governor Tim Walz (D) amid mounting reports of widespread fraud and financial abuse within Minnesota's child care assistance program.
Senator Bill Cassidy (R-LA), chairman of the Senate Health, Education, Labor, and Pensions (HELP) Committee, led the letter, which comes as federal investigations continue to uncover what lawmakers describe as systemic failures in the state's oversight of federal funds.
According to estimates cited by authorities, misuse across multiple social service programs in Minnesota, including child care, nutrition, Medicaid, and housing assistance, could exceed $9 billion since 2018.
"We write to express the serious concern regarding recent reports and federal investigations alleging widespread fraud and misuse of federal funds within Minnesota's state-administered child care assistance programs," the senators wrote. "The state's apparent negligent management of federal funds raises significant concerns about the adequacy of the state's oversight, verification, and compliance systems for safeguarding taxpayer dollars intended to support vulnerable children and working families."
The lawmakers noted that the alleged fraud involved front groups that claimed to provide social services while siphoning taxpayer money intended to support families and children. They warned that failures at the state level allowed the abuse to continue for years without sufficient intervention.
The letter also highlighted actions taken by the Trump Administration in response to the allegations. Under President Trump's leadership, the U.S. Department of Health and Human Services froze child care payments to Minnesota pending further verification and audits.
"Some authorities estimate that billions in federal funds across various programs, including child care, nutrition, Medicaid, and housing assistance, may have been misappropriated since 2018," the senators continued. "The Constitution grants Congress the power of the purse, and the Senate is exercising its role to ensure proper stewardship of federal taxpayer dollars for child care programs."
The letter builds on Sen. Cornyn's recently introduced Fraud Accountability Act, which would explicitly add fraud as a deportable offense under the Immigration and Nationality Act. It also aligns with the administration's creation of a new Assistant Attorney General for Fraud aimed at addressing the misuse of taxpayer dollars nationwide.
The Lawmakers emphasized that accountability is necessary to restore trust in federal assistance programs and ensure funds reach the families they are intended to serve.
