Republican state senators in New York have formally called on Governor Kathy Hochul to launch an independent investigation into potential government program fraud, citing recent allegations of widespread abuse in neighboring Minnesota.

In a letter signed by 12 Republican state senators and delivered Friday, the lawmakers expressed serious concerns about vulnerabilities in publicly funded programs following troubling revelations from Minnesota. The letter specifically referenced reports of “schemes that reportedly involved sham daycare centers and other illegitimate entities” that allegedly defrauded taxpayers.

“The revelations in Minnesota raise serious concerns about the vulnerability of publicly funded programs to abuse,” the senators wrote. They urged Hochul to “immediately retain an independent private professional services firm to conduct a comprehensive audit of comparable programs in New York State.”

The lawmakers’ request comes in the wake of significant enforcement action by the Small Business Administration (SBA), which on Thursday announced the suspension of nearly 7,000 Minnesota borrowers. The federal agency identified approximately $400 million in suspected pandemic loan fraud within the state, highlighting potential systemic weaknesses in government assistance programs.

This development represents the latest chapter in an unfolding controversy that has drawn national attention, including from former President Donald Trump, who has pledged to “get to the bottom” of the Minnesota fraud allegations if elected.

The Minnesota case centers on accusations that various entities, including daycare centers, exploited pandemic-era assistance programs and other government initiatives through fraudulent applications and claims. State investigators have been examining whether these operations existed primarily on paper to siphon government funds.

Government watchdogs have long warned about the potential for fraud in rapidly deployed assistance programs, particularly those created during crisis periods like the COVID-19 pandemic when verification procedures were sometimes relaxed to expedite aid delivery.

New York operates similar programs to those under scrutiny in Minnesota, making it a logical target for preventative investigation, according to the state senators. Their letter suggests that proactive examination could potentially prevent similar losses in New York and restore public confidence in government assistance programs.

The issue has taken on political dimensions as well. In Minnesota, the chair of the state’s fraud committee has claimed that Governor Tim Walz “turned a blind eye” to fraud warnings for years before the current investigation began. This allegation has fueled Republican criticism of pandemic-era program oversight across multiple states.

Financial oversight experts note that detecting and preventing such fraud presents significant challenges, as sophisticated schemes can involve networks of seemingly legitimate businesses designed specifically to exploit program vulnerabilities.

For New York, with its vast social service network and extensive pandemic relief programs, an independent audit could potentially identify similar vulnerabilities before they lead to substantial financial losses. The state disbursed billions in pandemic-related assistance through various programs over the past four years.

Governor Hochul’s office has not yet publicly responded to the letter from the Republican lawmakers. As New York continues to manage ongoing assistance programs, the pressure to ensure proper oversight and accountability has intensified in light of the Minnesota revelations.

The SBA’s action in Minnesota represents one of the largest single enforcement actions related to pandemic program fraud since COVID-era assistance programs began, underscoring the scale of the potential problem and the challenges facing government agencies tasked with preventing similar abuses.