House Oversight Committee Expands Investigation into Minnesota Social Services Fraud

Rep. James Comer, Chairman of the House Committee on Oversight and Government Reform, has broadened his investigation into alleged widespread fraud within Minnesota’s social service programs, requesting detailed documentation and testimony from state officials.

In a letter to Minnesota Legislative Auditor Judy Randall, Comer demanded a staff-level briefing and all documents related to reviews conducted by the Office of the Legislative Auditor (OLA) regarding the Minnesota Department of Human Services (DHS) and allegations of fraud within the state.

The committee’s action follows a damning report issued earlier this month by the state’s Office of the Legislative Auditor concerning a performance audit of the DHS Behavioral Health Administration grants. The audit, covering the period from July 2022 through 2024, concluded that “The Behavioral Health Administration did not comply with most requirements we tested and did not have adequate internal controls over grant funds.”

Comer has also requested that Shireen Gandhi, temporary Commissioner of the Minnesota Department of Human Services, provide testimony at an in-person transcribed interview scheduled for January 30. His letter contained a clear warning: “If you do not voluntarily appear for the interview, we will be forced to evaluate the use of the compulsory process.”

The investigation, initially launched last month, gained significant public attention following independent journalist Nick Shirley’s viral report alleging extensive fraud throughout Minnesota’s social services system. According to the congressional committee’s press release, “Criminals in Minnesota have stolen an estimated $9 billion in taxpayer funds intended to feed children, support autistic children, house low-income and disabled Americans and provide healthcare to vulnerable Medicaid recipients.”

This probe represents one of several high-profile investigations being led by Comer’s committee, which has been particularly active in scrutinizing government spending and potential mismanagement of public funds across various agencies and programs.

The Minnesota case has drawn particular attention due to the scale of the alleged fraud and its impact on vulnerable populations. The programs affected were designed to provide essential services to children, disabled individuals, and low-income families, making the alleged misappropriation of funds particularly troubling for legislators.

The investigation comes amid growing national concern about oversight and accountability in social service programs. Several states have faced similar allegations of fraud and mismanagement in recent years, prompting calls for stricter controls and more transparent reporting mechanisms for public assistance programs.

For Minnesota, the investigation adds another layer of scrutiny to a state agency already under fire. The DHS, one of Minnesota’s largest state departments, administers critical social service programs affecting thousands of residents, particularly those most in need of assistance.

State officials have yet to publicly respond to Comer’s expanded investigation or the committee’s allegations regarding the scale of the fraud. However, the Legislative Auditor’s report provides independent confirmation that significant issues exist within the department’s grant management systems.

The committee’s investigation is expected to continue for several months, with potential hearings and additional document requests likely to follow the initial interviews. The outcome could potentially lead to legislative reforms at both the state and federal levels aimed at preventing similar instances of fraud and mismanagement in social service programs.