The No. 3 Republican in the U.S. House is warning that Minnesota Gov. Tim Walz may be running out of time as federal investigators continue probing massive fraud tied to the state’s social service programs.
House Majority Whip Tom Emmer (R-Minn.) suggested Wednesday that the scope of the scandal is far more serious than initially believed—and that Walz’s refusal to resign may not matter in the end.
“I think perhaps this is a lot deeper, a lot larger than we knew,” Emmer told Fox News Digital. “Tim should do the right thing and resign. And if he doesn’t, I think he might be leaving the offices in cuffs.”
Federal prosecutors are investigating widespread fraud across Minnesota’s taxpayer-funded assistance programs, with particular scrutiny on abuse involving nonprofit organizations and networks operating within the state’s social services system. The investigations come amid growing concerns about lax oversight, internal corruption, and political leadership that failed to act despite repeated warning signs.
Despite the escalating scrutiny, Democratic Gov. Tim Walz has aggressively rejected calls from Republican lawmakers—and even some Democrats—to step aside.
“I’m not going anywhere. And you can make all your requests for me to resign. Over my dead body will that happen,” Walz told reporters, responding publicly for the first time since his abrupt announcement that he would not seek re-election.
Walz ended his bid for an unprecedented third term after sustained criticism over his handling of what Republicans describe as one of the largest government fraud scandals in state history—a scandal that prosecutors say could ultimately total as much as $9 billion.
Damning State Audit Confirms Oversight Failures
Fueling the controversy is a bombshell audit released Monday by Minnesota’s nonpartisan Office of the Legislative Auditor (OLA), which found sweeping failures within the Department of Human Services’ Behavioral Health Administration (BHA).
According to the report, between July 1, 2022, and Dec. 31, 2024, DHS distributed more than $425 million in grants to 830 organizations, the vast majority of them nongovernmental. Auditors concluded the agency failed to implement even basic safeguards to ensure taxpayer money was being used as intended—often for mental health and substance abuse services.
Among the most alarming findings:
- Missing or incomplete progress reports
- Failure to document required monitoring visits
- No records at all for some oversight activities
- Evidence suggesting documents were backdated or created after the audit began, raising concerns about attempts to retroactively manufacture compliance
In one particularly troubling case, auditors found that a DHS grant manager approved more than $600,000 in payments and later left government employment to work for the very organization that received the funds.
Republican State Sen. Mark Koran blasted the findings in a statement.
“The OLA report shows a complete breakdown in how DHS’s Behavioral Health Administration manages hundreds of millions in taxpayer-funded grants,” Koran said. “BHA failed to verify that grantees were providing the services they were paid for, failed to put basic financial controls in place, and then created documentation after the fact to mislead auditors.
“Minnesotans deserve integrity from state agencies. Fabricating evidence after an audit begins is unacceptable. It obstructs the OLA’s work and prevents DHS from correcting its failures. The finding that a DHS manager approved a large grant and later became a paid consultant for that same grantee is a blatant conflict of interest. This kind of misconduct erodes public trust and undermines the effectiveness of grant programs.”
The audit also revealed a demoralized and undertrained workforce inside DHS. When surveyed, 73% of employees said they did not receive adequate training to properly administer grants. One employee told auditors:
“Executive leadership has repetitively shown staff that they won’t take the staff’s concerns or questions seriously until something serious happens or it makes the news.”
Pressure Mounts on Walz Administration
Republicans argue the audit confirms what whistleblowers and lawmakers have warned for years: that Walz’s administration presided over a culture of negligence, cronyism, and political cover-ups.
“Today’s shocking report by the Legislative Auditor shows a culture of pervasive fraud, negligence, and deception,” Republican House Speaker DeMuth said.
“We need answers immediately about the apparent backdating and potential falsification of documents found during the audit… It’s time to clean house and restore honesty and accountability in state agencies.”
The OLA ultimately concluded that Minnesota state government:
“Did not comply with most requirements tested for mental health and substance use disorder grants and did not have adequate internal controls over grant funds.”
As federal investigations continue and state audits pile up, Republicans say Walz’s defiance is becoming increasingly untenable.
Vice President JD Vance warned Wednesday that Minnesota’s massive fraud scandal is not an isolated failure but part of a broader, nationwide scheme exploiting America’s welfare system
Speaking on “Jesse Watters Primetime,” Vance said the administration believes a large-scale fraud ring involving illegal aliens and other bad actors has been siphoning billions of taxpayer dollars through government assistance programs.
“Anybody who is involved is going to get prosecuted,” Vance vowed on “Jesse Watters Primetime” Wednesday.
Vance did not mince words when asked whether Minnesota Gov. Tim Walz — who announced Monday that he will not seek re-election — should step down immediately.
“I think Tim Walz should resign,” Vance told Fox News host Jesse Watters. “I almost feel bad for the guy, except for the fact that he should’ve seen this.”
Calling the situation a “massive failure of government,” Vance said the problem goes far beyond individual cases of improper benefits.
“It’s not just that people are getting welfare who shouldn’t get welfare. … It’s bigger than that,” Vance said. “It’s that people take this money and create whole businesses around siphoning money from the American taxpayer.”
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I’ll bet some of that money went to purchase the tampon dispensers that “Tampon Tim” had installed in boy’s school restrooms and locker rooms. What a f*ing MORON Walz is ! Minnesota deserves better, like a Republican maybe !!
Americans (mainly the Conservative Voters): Hello. Regarding the “governor” of MN, very likely that “waltz” will find himself in handcuffs and indicted WHETHER OR NOT he resigns, and later. Law enforcement will be “coming for him”, likely regardless. FBI and DOJ should be looking at waltz’s personal finance records for any “huge” deposits.
Wow, another Demonrat money laundering scheme. Just proves the current Demonrat party are criminals similar to, or same as, the mafia. Minnesota, California, Massachusetts, New York, etc.
If You Can’t Do The Time…..Don’t Do The Crime ! Dumb ass.