Tim Walz Says While Trump Pardons, Minnesota Cracks Down On Pandemic-Era Fraud: 'The Buck Stops With Me'

Gov. Tim Walz (D-Minn.) emphasized the state's aggressive efforts to combat fraud while calling out federal failures under President Donald Trump that have allowed pandemic-era scamsters to escape accountability.

Minnesota Fraud Crackdown Intensifies With New Leadership

On Monday, Walz posted on X while sharing a Minnesota Star Tribune op-ed, writing: "We've spent years cracking down on fraud – referring cases to law enforcement, shutting down and auditing high-risk programs." 

He added, "Trump keeps letting fraudsters out of prison." 

The op-ed detailed the appointment of Tim O'Malley as Director of Program Integrity. 

O'Malley, a former FBI agent, judge, and criminal justice official, will lead efforts to detect fraud across state programs. 

Walz highlighted the creation of specialized law enforcement units, audits of high-risk programs, and new checks and balances to protect taxpayer dollars.

"The buck stops with me, and my focus now is on ensuring that not a single dollar falls into the wrong hands," Walz wrote.

Federal Pandemic Relief Fraud And Trump Pardons Draw Criticism

The governor also stressed that pandemic-era federal programs, including Medicaid and COVID relief funds, were designed for rapid distribution, which inadvertently created opportunities for fraud. 

He noted that other states faced similar challenges and criticized the Trump administration for pardoning individuals responsible for multi-million-dollar fraud. 

"What is not helpful is the president of the United States demonizing an entire community or pardoning someone single-handedly responsible for $1.6 billion in fraud," he said.

We've spent years cracking down on fraud – referring cases to law enforcement, shutting down and auditing high-risk programs.

Trump keeps letting fraudsters out of prison.

To the national news just now paying attention, here's what we've done to stop it. pic.twitter.com/bgvKPxVxxm

— Tim Walz (@Tim_Walz) December 30, 2025

Walz accused President Trump of politicizing fraud investigations to undermine programs that assist Minnesotans.

He stated that Minnesota has spent years cracking down on fraud, but Trump's "long game" aims to defund these essential programs.

This is Trump's long game.

We've spent years cracking down on fraudsters. It's a serious issue – but this has been his plan all along.

He's politicizing the issue to defund programs that help Minnesotans. https://t.co/7ByWjeXxu0

— Governor Tim Walz (@GovTimWalz) December 31, 2025

See Also: Trump's AI Order Under Fire— Amy Klobuchar Says It's ‘Likely Illegal' While Bernie Sanders Calls It ‘Extremely Dangerous'

Minnesota PPP Fraud Investigation Sparks National Criticism

On Monday, the Small Business Administration paused all grant funding to Minnesota amid an investigation into $430 million in suspected Paycheck Protection Program fraud, calling it one of the largest state-level cases in U.S. history.

SBA Administrator Kelly Loeffler cited oversight failures under Walz and pledged to stop "blank checks to fraudsters."

The probe followed reporting by YouTuber Nick Shirley, who documented millions in misused federal aid, and conservative activist Benny Johnson said the SBA uncovered half a billion dollars in fraud within days.

On Tuesday, Bill Ackman questioned why federal childcare funds went to Somali immigrant families, many on welfare.

Even assuming there was no fraud, none of this makes sense.

How is it that we have been funding billions of dollars of daycare for Somali immigrants in Minnesota 81% of which (according to Gemini) are on welfare?

In other words, if mom and dad don't work, why the need for…

— Bill Ackman (@BillAckman) December 31, 2025

Tom Emmer (R-Minn.) criticized Walz, accusing him of embarrassing Minnesota and mismanaging $9 billion of taxpayer funds.

He called the situation a betrayal of public trust and demanded accountability, including Walz's resignation, arguing that Minnesotans deserve leaders who safeguard their money.

Tim Walz embarrassed our state and drained taxpayers of 9 BILLION dollars.

This isn't just incompetence—it's a betrayal of trust that demands immediate accountability, starting with his resignation.

Minnesotans deserve leaders who protect their hard-earned dollars, not ones… pic.twitter.com/wJxgm6tzjB

— Tom Emmer (@tomemmer) December 30, 2025

Vice President JD Vance praised the pause and verification measures as a crucial step to prevent fraud and commended federal officials for their work.

Turning off payments and forcing verification before taxpayer money flows out the door is one of the most important steps we can take to end the fraud in Minnesota. But there will be many more to come.

Great job to @HHS_Jim and @SecKennedy. https://t.co/OwDf3JeloS

— JD Vance (@JDVance) December 31, 2025

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Photo Courtesy: lev radin on Shutterstock.com

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.