U.S. Senator Ashley Moody is leading a growing bloc of Republican senators demanding answers from outgoing Minnesota Governor Tim Walz following federal reports of widespread fraud and mismanagement involving child-care assistance programs in the state.
Moody, joined by Senate Health, Education, Labor, and Pensions Committee Chair Bill Cassidy (R-LA), Majority Leader John Thune (R-SD), Finance Committee Chair Mike Crapo (R-ID), Majority Whip John Barrasso (R-WY), and the entire Senate Republican Conference, signed a formal letter pressing the Walz administration for detailed accountability measures. The lawmakers cite ongoing federal investigations and significant concerns about how Minnesota handled billions in federal welfare and child-care dollars.
The push comes as the Trump administration has frozen child-care funding to Minnesota and several other states pending verification of how federal money was spent. Federal prosecutors are actively investigating what authorities describe as large-scale fraud across multiple social service programs.
Moody said the objective is straightforward: ensure federal dollars intended for low-income families and at-risk children were not misused.
“Taxpayer dollars must be protected, and vulnerable families must not be shortchanged by systemic failures in oversight,” Moody said in the joint statement. “Minnesota owes the public a full accounting of how such extensive fraud was allowed to occur.”
Scope of Fraud Draws National Scrutiny
Reports from federal investigators estimate that fraud across Minnesota’s social services system—spanning child-care, nutrition, Medicaid, and housing programs—may total billions of dollars since 2018.
One high-profile example is the Feeding Our Future scandal, in which more than 50 individuals were convicted for diverting hundreds of millions of dollars in federal meal program funds during the pandemic. Senators say that case highlights deeper structural weaknesses in the state’s oversight and compliance systems.
Senators Demand Answers from Walz
Moody and her colleagues submitted a series of pointed questions to Governor Walz, requesting written responses by January 22, 2026. The inquiry seeks clarification on:
- Minnesota’s progress complying with federal directives for comprehensive audits
- The timeline for meeting federal verification requirements
- Whether the state has implemented additional fraud-prevention measures
- How often Minnesota conducts on-site inspections of child-care providers
- The number of investigations, findings, and examples of fraudulent billing since 2018
- Reasons Minnesota has not fully adopted federal recommendations—such as real-time attendance tracking—outlined in a May 2025 HHS Office of Inspector General audit
The senators also request full documentation for all child-care providers receiving federal funds since 2018, including attendance data, licensing records, inspections, complaints, and investigative findings.
Moody Presses for Federal Stewardship
Moody emphasized that Congress has a constitutional responsibility to oversee federal spending, particularly when fraud is suspected.
“Congress controls the purse strings, and it is our duty to ensure federal funds are used properly,” Moody said. “Minnesota’s failures raise serious questions about the integrity of its systems and the potential nationwide impact if corrective steps are not taken immediately.”
Dozens of Senators Join Moody’s Effort
In addition to Moody and the Senate GOP leadership team, more than 50 other Republican senators co-signed the letter, including Susan Collins (R-ME), Ted Cruz (R-TX), Rand Paul (R-KY), Lindsey Graham (R-SC), Rick Scott (R-FL), Marsha Blackburn (R-TN), John Cornyn (R-TX), Mitch McConnell (R-KY), and Chuck Grassley (R-IA).
The unified Senate Republican Conference signals that oversight of Minnesota’s handling of federal funds is likely to escalate in the coming weeks.
