Draheim demands answers from Governor Walz and state agencies on fraud crisis amid $259 million federal funding hold

Senator Rich Draheim (R–Madison Lake) today criticized the lack of response from Governor Tim Walz and state agency commissioners to his recent letters seeking transparency on Minnesota's ongoing fraud crisis in public programs.

"As a taxpayer and as a legislator, I need to know what concrete actions the Walz administration is taking to protect our tax dollars and restore federal funding," said Sen. Draheim. "This isn't about politics. It's about accountability and ensuring we can work together on solutions before more taxpayer money is lost."

The federal government previously announced it would withhold Medicaid payments to Minnesota over concerns about fraud issues until the state delivered a “corrective action plan” to detect, prevent, and stop the fraud.

The state’s first plan was rejected in in January. Weeks later, the state submitted a revised plan. The revised plan was approved last week, though it’s unclear to lawmakers what the plan included or whether the Medicaid dollars will now be released.

In his letter to Gov. Walz, Sen. Draheim asked for details on the administration's response to the federal funding hold and its plan to stop the fraud.

"Minnesotans can’t afford more delays while federal funds are at risk and essential social services suffer," said Sen. Draheim. "Minnesotans deserve transparency and answers now."

In a separate letter to agency commissioners, Sen. Draheim requested details on steps taken to combat fraud since last year, including employee training protocols, performance metrics for fraud detection, and measurable results.

“We see new reports of fraud every week with no signs of the crisis is slowing,” said Sen. Draheim. “These questions are basic common-sense oversight. Agencies need to start sharing best practices on fighting fraud instead of keeping information to themselves. It would make every single state agency better at their job.”