Minn. State Rep. to Newsmax: Walz Silence on Fraud Fuels Outrage

Minnesota state Rep. Marj Fogelman said Friday on Newsmax that accountability for fraud should not be a political flashpoint, accusing Gov. Tim Walz of remaining silent as investigations expand into alleged misuse of taxpayer-funded programs, and federal officials freeze hundreds of millions of dollars tied to suspected fraud.

Fogelman, a Republican, made the remarks during an appearance on "American Agenda" as scrutiny intensifies over fraud allegations involving publicly funded programs in Minnesota.

"The fact that Governor Walz isn't saying anything is a little frustrating. He's supposed to be the leader of our state, and oversight shouldn't be political. It should be bipartisan because this is affecting every Minnesotan. And they want to know where this money is going. Everyone is being harmed. And accountability shouldn't be controversial," Fogelman said.

The lawmaker pushed back against claims that fraud investigations unfairly target specific communities, saying the issue is about transparency and stewardship of taxpayer funds, not race or politics.

"Again, I don't think that this fraud and waste and abuse that's going on is about any race. It's not about any political party. People just want answers. And we need to be transparent in what we're doing. We can't just do investigations and not have anybody getting any trouble for what they're doing," she said.

Fogelman said the scope of the alleged fraud raises serious questions about oversight failures within state agencies that administer and monitor the programs.

"Oversight doesn't just apply to politicians. Bureaucrats who administer these programs have the duty to protect taxpayer dollars. We had big budget cuts last year, but not one state agency was affected. And that's something that needs to get looked into," she said.

When asked why agency leadership has not faced consequences, Fogelman said accountability must extend beyond elected officials.

"They ... look[ed] the other way. And they should be held accountable, just like anyone else would," she said.

Concerns about oversight have been fueled by examples raised during the interview, including reports of meal reimbursements far exceeding local population sizes, prompting questions about how such claims went undetected for years.

"Minnesotans work hard for their money, and they pay their fair share, but they expect that money to be protected. When people see that our overtaxation [is] combined with this fraud and waste, they lose faith in the system, and it causes people and businesses to leave our state. And we don't want that for Minnesota," she said.

The comments come as the Small Business Administration freezes loan payments to nearly 7,000 Minnesota borrowers over suspected fraud tied to Paycheck Protection Program and Economic Injury Disaster Loans totaling roughly $400 million.

Those borrowers are now barred from future SBA loan programs, with many cases referred to federal investigators, according to the agency.

Walz has said he welcomes federal investigations but has argued the allegations stem from federal system failures, not state oversight.

The governor has also accused President Donald Trump of targeting Minnesota in a coordinated effort, an unsupported claim the administration has rejected.

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