9 Billion Reasons Tim Walz Is in Trouble

The alleged $1 billion fraud scandal involving Minnesota Governor Tim Walz continues to worsen, as the number has now ballooned to as much as $9 billion.

In fact, officials now estimate that nearly half of Minnesota’s total federal Medicaid funding may have been siphoned off through fraudulent schemes. Though somehow nobody noticed, until now. Looks like Governor Walz may have 9 billion reasons to worry. And it appears that his friends in the local media may have had an assist – knowingly or not – in covering up the scheme.

As reported in the New York Post:

Minnesota’s sprawling fraud crisis has garnered national headlines in recent weeks, but several critics say the problem festered for years, aided by local media that appeared uninterested in holding people in power accountable.

“In newsrooms, they’re told, ‘We can’t run that because we’re going to be accused of being racist,’” Townhall columnist Dustin Grage recently told Fox News Digital about news outlets in Minnesota essentially enabling the fraud by not calling out shocking taxpayer waste occurring primarily within the local Somali community.

The outlet that is considered by many the top news source in the region, the Minnesota Star Tribune, has faced criticism on social media in recent days over some of its headlines, including “Minnesota Somali community grapples with fraud cases while pushing back against stereotypes” on Nov. 26 and “Trump claims Minnesota lost billions to fraud. The evidence to date isn’t close” on Dec. 11.

On Thursday, federal prosecutors held a press conference where they revealed that the true scope of the fraud scandal could end up costing taxpayers around $9 billion, prompting some conservatives on social media to point out the Dec. 11 headline.

It’s also worth pointing out that the Star Tribune’s CEO worked for Tim Walz, as reported:

Additionally, the paper’s CEO is Steve Grove, who served as Gov. Tim Walz’s former commissioner of employment and economic development, which has sparked criticism from some who say that the paper is hesitant to pin Walz to the fraud crisis.

Fox News Digital spoke to several locals who argued that media outlets either didn’t cover the scandal thoroughly enough or, in cases where it was covered, Walz’s oversight role was downplayed.

Assistant U.S. Attorney Joe Thompson didn’t mince words when addressing the scope of what investigators are uncovering, describing it as a “staggering industrial-scale fraud.” Not merely a handful of bad actors, but something far more systemic – and deeply troubling.

This wasn’t money lost to inefficiency. It wasn’t misallocated through bureaucracy. According to prosecutors, this involved fake nonprofits, fake facilities, and fake services; the scheme comprised organizations that existed largely on paper while billing the federal government for programs that either barely existed or never existed at all.

And the scale matters here. When we talk about $9 billion, it’s easy to experience number fatigue. But this wasn’t abstract money. This was taxpayer funding meant for healthcare, food programs, and vulnerable communities– critical resources designed to help people in need. Instead, much of it appears to have been stolen, with allegations that portions of the money were routed overseas, including to regions tied to extremist activity.  

That raises serious questions – not just about the criminals who carried out the fraud, but about oversight, accountability, and leadership.

Because this fraud didn’t happen overnight. Instead, these programs were administered through state systems. There were supposed to be safeguards. There were supposed to be audits. There were supposed to be basic checks – like verifying whether a listed healthcare provider actually existed, or whether a nonprofit was operating out of more than a mailing address.

Yet somehow, billions slipped through the cracks.

And when concerns were raised early on, critics were often dismissed. The party line was that any fraud was isolated. We were told that even questioning it was unfair, that this sort of thing happens everywhere. But now we know this wasn’t “everywhere.” This was extraordinary in both scale and concentration.

That’s why this moment matters. If half of a state’s federal Medicaid funding can be stolen without immediate detection, that’s not just a policy failure – it’s a crisis of governance. And it’s exactly why transparency and oversight aren’t optional, no matter how uncomfortable the questions may be.

There are also very real political implications – or at least, there sure should be. The governor of Minnesota oversees the state’s executive branch. Members of Congress from the state must face renewed scrutiny. And voters deserve real answers – not just polished talking points, artful deflection, and accusations meant to shut down debate. This isn’t about scoring political points. It’s about trust.

Taxpayers deserve to know where their money went. Families who rely on these programs deserve to know why funds intended for them disappeared. And Americans deserve assurance that when fraud is uncovered, it’s confronted – not minimized.

And, of course, the investigation is ongoing, and more charges are likely coming. But one thing is already clear: This story is far bigger than anyone initially admitted. And if we want to prevent the next $9 billion scandal, it starts with acknowledging just how serious this one is.

Today’s Sekulow broadcast included more analysis of this latest revelation in the Minnesota fraud scandal, as the number has now ballooned to $9 billion, and Governor Tim Walz’s attempts to shirk off any real accountability. We were also joined by ACLJ Senior Counsel for International and Government Affairs Jeff Ballabon to discuss the global rise in antisemitism and how Jewish communities worldwide are now forced to worship under heavy security in the wake of Oct. 7, and the recent horrific attack in Bondi Beach, Australia. Jeff highlighted Israel’s role as a refuge for persecuted religious minorities, including Christians fleeing violence in places like Nigeria, underscoring Israel’s commitment to protecting religious freedom amid widespread global failure to do so in return.

Watch the full broadcast below: