Minnesota GOP Lawmakers Call for Federal Audit Over Alleged $1 Billion Fraud in State Human Services Programs

(KNSI) – Minnesota lawmakers in St. Paul and Washington, D.C., are asking for an investigation into massive fraud in the state’s human services programs.

The Wednesday request comes from a group of Republicans that includes Minnesota Speaker of the House Lisa Demuth of Cold Spring and Congressman Tom Emmer. They allege hundreds of millions in fraudulent claims have been made against state programs at a time when Minnesota faces a $6 billion budget shortfall in the next couple of years.

The letter states, “For years, DHS has failed to prevent massive fraud and abuse, costing taxpayers what will be over $1 billion once all investigations conclude. This culture of corruption must end. It’s time for real accountability, and that starts with a full, independent federal audit.”

Demuth and other state leaders sent the letter to Health and Human Services Acting Inspector General Juliet Hodgkins urging an audit of the state for misuse of tax-funded programs. They specifically cited housing stabilization services, autism treatment programs, early intensive developmental behavioral intervention, drug recovery services, and non-emergency medical transportation. All programs have experienced overbilling and bogus claims that lawmakers say have gone unchecked for years.

Lawmakers on both sides of the aisle expressed frustration when a bill to create an independent office of inspector general to identify and prevent fraud, waste and abuse in state programs did not come to a floor vote during the 2025 session.

As part of this coordinated effort, Congressman Emmer’s office led the state’s delegation on Wednesday in sending a separate letter to Governor Tim Walz, asking for a deeper dive into the housing stabilization Services program, specifically, one of the key programs Minnesota Republicans want investigated.

___