What is Tim Walz's role in Minnesota's welfare fraud scandal? - explainer

The FBI and Department of Homeland Security alleged to have found widespread fraud at Somali-run child care centers across Minnesota.

Walz then wrote on X/Twitter that he had "decided to step out of the race and let others worry about the election while I focus on the work."

Feeding Our Future is a non-profit that prosecutors are saying falsely claimed to provide meals to children in need during the COVID-19 pandemic. As part of the prosecution, federal charges were brought against dozens of staff, most of them Somali in origin, starting in 2022.

Non-profit founder and executive director Aimee Bock, along with Salim Said, were found guilty for their role in a $250 million fraud scheme linked with a government-funded food program for children, a federal jury found in March.

Said was the co-owner of a local restaurant that provided meals for children under the scheme.

Prosecutors accused Bock and Said of using proceeds from the scheme to purchase property and luxury vehicles and to pay for international travel.

Bock, who is not Somali, was subject to a raid on her home and offices by federal agents. She was eventually convicted of seven federal charges, including bribery. She has not yet been sentenced.

Said, who is also awaiting his sentencing, was convicted of 20 federal charges, including bribery and money laundering.

Both face a possible 30-year prison sentence, according to a CNN affiliate.

Thompson headed the fraud and public corruption section at the US Attorney's Office for the District of Minnesota for over three years.

“The magnitude cannot be overstated,” Thompson said. “What we see in Minnesota is not a handful of bad actors committing crimes. It’s staggering, industrial-scale fraud.”

Walz accussed Thompson of fabricating the scale of the fraud.

“You should be equally outraged about one dollar or whatever that number is, but they’re using that number without the proof behind it," the governor said.

The Department of Health and Human Services announced a freeze on child care payments to the state last week, Deputy Secretary Jim O'Neill confirmed on X/Twitter.

He demanded a state audit of day care centers, stating that HHS would now require proof that funds are spent appropriately, including receipts and photographic evidence.

"Funds will be released only when states prove they are being spent legitimately," he said.

Walz, who ran as the Democratic nominee for vice president in 2024 on Kamala Harris's ticket, pushed back on allegations that his administration lacked adequate safeguards against fraud.

The state has been "referring cases to law enforcement, shutting down and auditing high-risk programs," he said last week.

The governor also asked Minnesota's state legislature for more executive authority to take "aggressive action," Walz's spokesperson told CNN.

However, state audits found that the lax oversight of Minnesota funds was either dismissed or minimized by Walz and other state administration officials, CNN reported in October 2024.

Opponents have accused Walz of taking a hands-off approach to accountability amid allegations that the Somali community in the state enjoys strong support and makes large contributions to the Democratic Party, which has led Minnesota Democrats to shield the community from scrutiny.

Walz, in December, also praised the fraud charges brought against "individuals accused of defrauding public programs," and "highlighted Minnesota’s comprehensive, multi-year efforts to combat fraud and protect taxpayer dollars," a statement shared by the governor's office confirmed on December 18.

"This is exactly the type of strong action we need from prosecutors to ensure fraudsters are put behind bars,” he said. “This infuriating greed and criminal activity is why we took action earlier this year to shut down Housing Stabilization Services and hired an outside firm to audit these programs and stop payments to fraudulent providers. We will not tolerate fraud, and we will continue to work with federal partners to ensure fraud is stopped and fraudsters are caught."

MAGA activist Nick Shirley has been sharing videos on social media that purport to show widespread fraud at the federally funded day care centers.

Shirley spoke to CNN, telling them that he is "100% sure" that the allegations made in his video are truthful.

Shirley is growing in recognition within MAGA circles and was invited to speak at the White House in October during a roundtable with US President Donald Trump.