Friends and neighbors,

The new year is here, and we face many challenges in Minnesota. At the top of that list is fraud. Unfortunately, fraud is not new in Minnesota. Under Governor Walz and Democratic leadership, it has grown to unprecedented levels and drawn national attention.

The $250 million Feeding Our Future scandal now appears to be just the tip of the iceberg. More fraud continues to surface across state programs. Daycare fraud, first exposed in a 2018 Fox 9 investigation, has reemerged. A January 7, 2026, report from the Office of the Legislative Auditor found that the Department of Human Services failed to follow basic requirements in administering Behavioral Health Administration grants. The report cited extremely weak internal controls, missing documentation, and questionable recordkeeping involving hundreds of millions of taxpayer dollars.

Additional fraud has been uncovered in housing stabilization services and autism-related programs. In some cases, the problems became so severe that programs were shut down entirely. These failures put taxpayer dollars meant to support seniors, children, and vulnerable Minnesotans at risk.

Last session, Senate Republicans pushed for real reforms to address these issues. We advanced proposals for stronger audits, real enforcement, and the creation of an independent Office of Inspector General outside the governor’s control. That proposal passed the Senate with strong bipartisan support but failed to gain enough Democrat support in the House. Despite continued fraud, Democratic leadership has resisted meaningful oversight.

A change in the governor’s office alone will not fix these problems. Minnesotans deserve a state government that values accountability, transparency, and results. Protecting taxpayers from fraud must remain a top priority.

The new year also marks the rollout of Minnesota’s Paid Family and Medical Leave program. This program was passed in 2023 by the Democrat Trifecta, with nearly $800 million used to start the fund and 400 new state employees needed to administer it. No Republicans in the House or Senate voted for the bill. That was not because we oppose paid leave. It was because we want a program that works for both workers and employers.

This law takes a one-size-fits-all approach and did not fully account for the wide range of employers across our state. Many businesses already provide paid leave, but small businesses often need more flexibility to make programs like this work. When new mandates move forward without that flexibility, unintended consequences can follow for both employers and employees.

I have heard directly from small business owners, as well as schools, cities, and counties. They are concerned about the cost, complexity, and staffing challenges this program creates. When an employee is gone for an extended period, the work does not disappear.

These are family-owned businesses and local governments operating on thin margins. If costs and regulations pile up too quickly, some will not survive. When small businesses close, jobs are lost and communities suffer, especially in Greater Minnesota.

I am not against paid leave. I am against building another government bureaucracy that does not work for Minnesotans. If this program is not implemented well, it risks failing the people it was meant to help.

We will return to St. Paul on February 17 to begin the 2026 legislative session. A major focus will be passing a bonding bill to support needed infrastructure projects across the state. We will also work to fix unintended consequences in recent laws, strengthen oversight, and restore accountability in state government.

Minnesotans deserve a government that works, and we must deliver.

Sincerely,

Gene