Governor Walz Responds to FBI Fraud Investigation in Minnesota Housing Program
Minnesota Governor Tim Walz is addressing concerns following an FBI investigation into the state’s Housing Stabilization Services program, which provides housing support for older adults and people with disabilities, including those struggling with mental illness or substance use disorders.
FBI Raids and Alleged Fraud
Earlier this week, FBI agents executed search warrants at eight locations associated with five Twin Cities providers. Authorities allege that the providers fraudulently billed for services that were not delivered. The targeted locations included St. Paul, Roseville, Blaine, Little Canada, and Woodbury, according to reports.
Acting U.S. Attorney Joe Thompson emphasized that the program’s structure made it vulnerable to exploitation. “Minnesota is a generous state… but there are bad folks trying to take advantage of that generosity,” Thompson said, noting the need for stronger oversight and accountability.
Walz Pledges Stronger Safeguards
In response to the raids, Governor Walz reiterated that state agencies are implementing new measures to detect and prevent fraud. “If you’re going to commit these crimes in Minnesota, you are going to get caught,” Walz said in a recent interview.
He highlighted the role of legislative tools, the state’s Inspector General, and emerging technologies, including AI, to enhance monitoring of programs funded by taxpayer dollars. “You’re always gonna find people trying to cheat the system,” Walz added.
Political Reactions
The investigation has drawn criticism from Republican lawmakers, who argue that oversight failures are putting public funds at risk. Rep. Kristin Robbins, chair of the House Fraud and State Agency Oversight Committee, called the case an “enormous failure” by the Walz administration.
“This follows the same pattern the Fraud Committee has been highlighting for months: Minnesota expands unregulated Medicaid services and fraudsters jump in to exploit lax oversight,” Robbins said. She emphasized that taxpayers and vulnerable residents are at risk when programs lack proper monitoring.
The raids follow other high-profile fraud investigations in Minnesota, including the Feeding Our Future case and ongoing inquiries into autism center programs. Together, these cases underscore ongoing concerns about oversight in state-funded initiatives.
Walz on Community and Leadership Amid Crisis
In a separate statement, Governor Walz spoke about the broader context of public service and community, referencing the tragic shooting at Annunciation Catholic School in Minneapolis, which occurred just days earlier. The attack left two children and the shooter dead, with 17 others wounded.
“The community behind us—Annunciation Church and School—committed to academics, service, and Catholic values, filled with the first days of school of beautiful children going to learn those values… they were met with evil and horror and death,” Walz said during a press conference.
He expressed gratitude for federal support, including outreach from President Donald Trump, U.S. Senator Amy Klobuchar, and other leaders, highlighting cross-party cooperation during the crisis. “Receiving a call from President Trump… expressing their deep condolences and an offer to provide support to the folks here in Minnesota of what’s needed,” Walz said.
Looking Ahead
State officials and law enforcement are continuing the investigation into alleged fraud in the Housing Stabilization Services program. As the FBI and U.S. Attorney’s Office review evidence, new measures are expected to prevent future misuse of public funds.
Governor Walz’s response reflects a balance between addressing immediate concerns about program oversight while maintaining focus on public safety and community recovery after recent tragedies.
While the investigation unfolds, Minnesota lawmakers and residents will be watching closely to see how accountability, enforcement, and reforms are implemented in programs designed to serve vulnerable populations.
