Minnesota took significant steps to combat fraud and safeguard taxpayer dollars during the 2026 legislative session. Sen. Jordan Rasmusson (R–Fergus Falls) authored and supported several anti-fraud measures that were enacted into law. These reforms strengthen oversight, improve accountability, and increase transparency across state government.
“Minnesota is facing a human services fraud crisis, and the Walz administration has failed to act,” said Rasmusson. “Our state has lost billions of dollars to criminals, and Minnesotans are demanding action and accountability. This anti-fraud package makes it clear that enough is enough.”
Expanding electronic visit verification
Rasmusson joined Senate Republicans in February to roll out a legislative action plan to stop the fraud in Minnesota’s public support services. At the press conference, he introduced a bill, SF 4970, to strengthen electronic visit verification (EVV) for home- and community-based services. EVV uses technology to verify when a provider visits a client.
“Senate Republicans identified this as an anti-fraud priority early in the session,” said Rasmusson. “Recent reports show gaps between what was billed and what was actually delivered. Using modern technology already in place in other states will help ensure vulnerable Minnesotans receive the services they depend on.”
As part of end-of-session negotiations, the final EVV language was included in the Human Services supplemental budget bill, which was signed into law on May 27, 2026.
Enhancing program integrity
This session, the Minnesota Legislature approved a legislative package to enhance program integrity and protect taxpayer dollars. It contains a key measure, co-authored by Rasmusson, to expand state powers to withhold payments for suspected fraud.
This measure builds on a 2025 law and strengthens Minnesota’s ability to stop fraudsters by allowing state agencies to pause payments when there is a credible allegation. It also removes limits that previously restricted how long payments could be withheld and expands information sharing between agencies.
“This new law will provide an important tool for stopping Minnesota’s massive fraud crisis. I am glad that Senate Republicans worked with our colleagues here in the Capitol to push this provision across the finish line,” noted Rasmusson.
Additionally, the program integrity package includes a Republican-championed policy to strengthen transparency and accountability in state fraud prevention efforts. It reinstates annual reporting by the Department of Human Services (DHS) Office of Inspector General on fraud cases, oversight activities, and recovered funds.
Creating an independent Office of Inspector General
Rasmusson also supported a major new law establishing an independent Office of the Inspector General (OIG) to combat fraud, waste, and abuse in Minnesota government. This statewide office will have oversight of all state agencies and law enforcement authority to aggressively root out fraud. It will operate independently from the Governor’s Office and is subject to legislative oversight.
The Senate first passed the OIG proposal during the 2025 session, but House Democrats did not act until this year. In recent months, lawmakers from both chambers worked together to reach a bipartisan agreement to preserve the office’s independence and maintain strong investigative and enforcement authority.
Modernizing IT for human services programs
The Legislature approved a meaningful investment to modernize the IT systems used by local and state governments to administer human services programs. The law appropriates nearly $75 million in fiscal year 2027 and an additional $15 million in fiscal years 2028 and 2029 from the general fund to support system upgrades.
“Minnesota’s human services IT systems are outdated and increasingly inefficient,” said Rasmusson. “Our local units of government have been requesting these updates for years. Modernizing these systems will help programs run more efficiently and provide better protection for taxpayer dollars.”
Under the law, any remaining positive forecast balance in the state budget would first be used to restore the disaster assistance contingency account to $50 million, and then to replenish the modernization fund up to $50 million, depending on available resources.
Establishing a 100% tax on fraud
Rasmusson supported SF 5032, the Take It Back Act, to strengthen penalties and help recover public dollars stolen through fraud. The bipartisan bill establishes a 100% tax on funds obtained through fraud against public programs. Revenue from this tax will be deposited into a dedicated account for Minnesota income tax relief.
In addition, the legislation gives the Department of Revenue stronger enforcement tools. It allows the department to pursue hidden or transferred assets and work closely with the OIG and the Bureau of Criminal Apprehension to improve the detection and recovery of stolen funds.
Strengthening provider enrollment and revalidation requirements
Rasmusson also worked to strengthen Medicaid provider enrollment and oversight. Much of the language from legislation he authored, SF 4071, was ultimately enacted as part of the Human Services supplemental budget bill.
The new law recodifies Minnesota Medicaid provider enrollment and revalidation statutes and expands enhanced requirements to all high-risk provider types. It requires DHS to conduct more frequent site visits, mandates compliance training programs for high-risk providers, and establishes stronger oversight measures to ensure providers understand billing requirements and the penalties for fraudulent activity.
“We took important steps this session to hold the Walz administration accountable and protect taxpayer dollars, and I will continue building on that progress,” Rasmusson concluded.