Grassley, Colleagues Press Minnesota Governor Walz Over Rampant Child Care Fraud, Demand Accountability for American Taxpayers

WASHINGTON– Sen. Chuck Grassley (R-Iowa) joined the entire Senate Republican Conference in demanding accountability from Minnesota Governor Tim Walz amid widespread reports of fraud and abuse of federal child care funding in Minnesota.
The Trump administration has paused child care funding to Minnesota pending verification and audits of how Minnesota and other states are using federal funds. There is a current federal investigation into large-scale fraud in Minnesota’s social services programs. Grassley’s Senate Judiciary Committee is investigating the ongoing issue of government fraud in Minnesota and beyond, including a subcommittee hearing on January 28th.
“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. Unfortunately, these latest reports appear to reflect only the tip of the iceberg,”the senators wrote.
“The Constitution grants Congress the power of the purse, and the United States Senate is exercising its duty to ensure proper stewardship of federal taxpayer dollars for child care programs, and we take this responsibility very seriously,”they continued.
Read Senate Republicans’ full letterHEREand below.
January 8, 2026
Governor Tim Walz130 State Capitol75 Rev. Dr. Martin Luther King Jr. Blvd.St. Paul, MN 55155
Dear Governor Walz:
We write to express 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 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. Unfortunately, these latest reports appear to reflect only the tip of the iceberg.
Federal prosecutors have been conducting a broader investigation of large-scale fraud in Minnesota’s social services programs. 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. One example includes the “Feeding Our Future” scheme, where more than 50 individuals were convicted for diverting hundreds of millions of dollars in pandemic relief funds intended for school meals.
Under the leadership of President Trump, the U.S. Department of Health and Human Services (HHS) has acted promptly to freeze child care payments to Minnesota pending verification and audits of how funds were used. The Constitution grants Congress the power of the purse, and the United States Senate is exercising its duty to ensure proper stewardship of federal taxpayer dollars for child care programs, and we take this responsibility very seriously. To that end, we are writing to request detailed responses to the following questions, on a question-by-question basis, no later than Thursday, January 22, 2026:
-30-