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Minnesota Fraud Report: State Voluntarily Resumed Funding

Yahoo Finance •
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A Congressional report has revealed that Minnesota voluntarily resumed funding to Feeding our Future in 2021 despite fraud concerns, contradicting Governor Tim Walz's initial claims. The report shows state officials resumed payments in April 2021, a month after stopping them for 'serious deficiency,' and continued until January 2022.

Governor Walz had initially blamed a court order for the resumed payments, stating he hoped for an investigation into the judge's ruling. However, Judge John Guthmann publicly rebuked this claim, stating the Department of Education made the payments voluntarily without any court order. The state had first received complaints about Feeding our Future as early as 2018 and notified the governor's office by April 2020.

During a Congressional hearing, Representative Jim Jordan pressed Walz about the discrepancy between his statements and the report's findings. The report also highlighted challenges in stopping payments, with officials noting it was 'incredibly difficult' to halt funding to suspicious organizations. In total, prosecutors say Feeding our Future defendants pocketed more than $250 million in taxpayer dollars, leading to federal investigations into fraud in several other state Medicaid programs.