Rep. Stauber to Newsmax: Walz Guilty of 'Dereliction of Duty'

Rep. Pete Stauber, R-Minn., sharply criticized Minnesota Gov. Tim Walz for what Stauber called "dereliction of duty" in handling a sprawling fraud scandal that federal authorities say may have siphoned off massive amounts of taxpayer dollars from state-run programs.

According to federal prosecutors, half or more of the roughly $18 billion in federal funds tied to 14 Minnesota-run programs since 2018 may have been misappropriated, including child nutrition, housing services, and autism treatment programs, with ongoing investigations into the full scope of wrongdoing.

The scandal initially gained national attention with the Feeding Our Future case, a defunct Minnesota nonprofit that prosecutors and earlier reports characterized as one of the largest pandemic-era fraud schemes, accused of stealing at least $250 million in food aid funds.

Stauber, appearing Wednesday on Newsmax's "Wake Up America," said Walz and other Democrat leaders "had no clue this was going on," accused them of failing to stop rampant fraud, and defended whistleblowers who he said were retaliated against for raising alarms.

Stauber echoed conservative calls for accountability and praised the Trump administration's intervention to investigate and halt the alleged fraud.

Stauber's remarks came as the federal Department of Health and Human Services announced a freeze on roughly $185 million in annual child care funding to Minnesota because of widespread fraud in federal programs administered by the state, demanding a full audit of attendance and licensing records.

Walz pushed back, calling the freeze politically motivated and asserting that state authorities have been actively combating fraud.

Stauber's comments underscored deep political tensions around the fraud investigations. He accused Walz's administration of shielding wrongdoing and said Minnesotans "of all parties" are frustrated and want accountability. He again welcomed the Trump administration's decision to send investigators into the state to "root out waste, fraud, and abuse."

The federal response has intensified in recent days. Homeland Security and FBI officials are expanding investigations in Minneapolis, with some agencies reported to be conducting door-to-door inquiries at suspected fraud sites.

Numerous individuals have already been charged in connection with fraudulent billing schemes, with prosecutors and federal law enforcement sources estimating billions in potential losses to taxpayers.

Walz, a two-term Democrat governor and the vice-presidential nominee in 2024, has faced growing calls to resign over the handling of the scandal, with state Republican lawmakers arguing he failed to act on warnings. Walz's office has defended its efforts to crack down on fraud and has initiated audits and oversight reforms.

Critics, including Stauber and other GOP officials, have accused the Walz administration of labeling fraud critics as racist if they sought to draw attention to the schemes — a charge Walz and his allies deny.

State and federal authorities are continuing to investigate and pursue additional charges, with House Republicans planning further oversight hearings on the matter in early 2026.

The controversy has also sparked cultural and political tensions, with most defendants in the fraud cases reported as Somali Americans, prompting community leaders to warn against broad stigmatization. Federal authorities have emphasized that enforcement actions are focused on fraudulent activity, not ethnicity.

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