In a strong bipartisan vote, the Minnesota Senate today approved legislation to establish a new, independent Office of Inspector General (OIG) to investigate fraud and misuse of taxpayer money in state government and publicly funded programs. 

Created under Senate File 856, the OIG will operate independently of all state executive branch agencies to ensure integrity in the operations of state agencies and programs. It will have subpoena authority and be required to issue regular reports detailing investigations, audits, and corrective actions taken. 

“This is a smart step forward in making sure Minnesotans can trust that their hard-earned tax dollars are being put to good use,” said Senator Rich Draheim (R–Madison Lake), a co-author of the bill. “We’ve seen too many examples of fraud and waste in recent years. It’s time we created an office solely focused on rooting out bad actors and holding government accountable.” 

The new OIG builds on existing oversight efforts within specific state agencies, such as the Inspector General offices at the Departments of Human Services and Education. These agency-specific offices will continue to operate and carry out federally required duties, like investigating Medicaid fraud. 

Unlike the Office of the Legislative Auditor, which focuses on financial audits, the OIG will have investigative authority to examine fraud, evaluate misuse of public funds and data, and refer cases for civil, criminal, or administrative action to the Bureau of Criminal Apprehension or appropriate agencies. 

“Both Democrats and Republicans but more importantly, everyday Minnesotans agree it’s time to act,” Draheim said. “This office will rise above partisanship and give the public an objective watchdog focused on restoring trust in how our government operates.” 

This effort comes amid growing concern about government accountability. In 2024, U.S. Attorney Andrew Luger stated that “Minnesota has a fraud problem” following major criminal fraud cases, including the Feeding Our Future scandal and ongoing Medicaid fraud investigations. 

The bill also creates an Inspector General Advisory Commission, consisting of two members from each legislative caucus, to assist in recommending candidates for the role. The Inspector General will ultimately be appointed by the governor and confirmed by a three-fifths vote of the Senate. The position carries a five-year term, and the new office is expected to be up and running in 2026. 

A bipartisan amendment adopted on the Senate floor grants the new OIG law enforcement authority by establishing an Anti-Fraud and Waste Bureau within the office. The bureau will be led by a chief law enforcement officer and have the power to make arrests, strengthening the OIG’s ability to investigate and respond to fraud, waste, and abuse across state government. 

The bill passed on a bipartisan vote of 60–7, marking a long-overdue step toward restoring public confidence and strengthening fiscal accountability.