HHS launches review of Minnesota’s federal funding use under Walz
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The Department of Health and Human Services (HHS) launched an investigation into how Minnesota used billions of dollars in federal social service funding and requested detailed records from Gov. Tim Walz’s administration and other state agencies after reports raised questions about whether some of the money was misused, according to the letters. first obtained by New York Post.
The letters were sent Monday by Alex Adams, assistant secretary of the Administration for Children and Families, to Walz, Minneapolis Mayor Jacob Frey and a nonprofit organization that manages Head Start programs, the Post reported.
Adams said HHS is trying to determine whether federal safety net funds were diverted or mismanaged and whether such misuse was “used to fuel illegal and mass immigration” to Minnesota, according to the Post.
Adams told the outlet that the review focuses on “accountability for American taxpayers” and ensuring federal aid programs are not jeopardized.
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“Minnesota is a prosperous state, a well-governed state,” said Minnesota Governor Tim Walz. (AP Photo/Meg Kinnard)
The Post reported that Minnesota received more than $8.6 billion in ACF funding between fiscal years 2019 and 2025 through more than 1,000 federal grants. In fiscal 2025 alone, the state received more than $690 million for safety net programs under President Biden, according to federal spending records reviewed by the Post.
In the letters, Adams requested what the Post described as a “comprehensive list” of all state agencies receiving ACF funding at the time and detailed administrative data. The information sought included recipient names, addresses, dates of birth and, where appropriate, Social Security numbers and immigration A numbers, the Post reported.
Adams told the Post that HHS has “legitimate reason to believe they are mishandling taxpayer money,” citing recent fraud investigations and allegations involving the Minnesota Department of Human Services. The letters referenced public statements from hundreds of DHS employees claiming that their warnings of fraud were ignored and that whistleblowers faced retaliation, according to the Post.
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Minneapolis Mayor Jacob Frey speaks at a news conference at City Hall following the mass shooting at Annunciation Catholic School in Minneapolis on August 28, 2025. (Stephen Maturen/Getty Images)
The review comes at a time when Minnesota’s handling of federal funds is under intense scrutiny following several high-profile fraud cases. Federal prosecutors have charged dozens of people in connection with the Feeding Our Future scheme, which diverted $250 million meant for child nutrition programs into luxury purchases and real estate. Many of those charged had ties to nonprofit organizations serving the Somali community in Minnesota.
The Post also cited Pew Research Center data showing Minnesota’s unauthorized immigrant population growing by nearly 40,000 people between 2019 and 2023, to an estimated 130,000 residents, or about 2% of the state’s population.
Men attend the weekly Friday prayer session at the Abubakar As-Saddique Islamic Center during a time when a federal immigration operation targeting the Somali community is reportedly ongoing in Minneapolis, Minnesota, USA. December 5, 2025. (Tim Evans/Reuters)
According to the Post, the ACF review includes several important federal programs, including the Community Services Block Grant, Social Services Block Grant, Low-Income Home Energy Assistance Program, Title IV-E Foster Care, Refugee Cash and Medical Assistance, Child Care and Development Fund, and Parents in Community Action, a Head Start donor.
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“The Trump Administration has made clear its commitment to rooting out fraud, protecting taxpayer dollars, and ensuring program integrity across all federal aid programs,” Adams wrote in his letters, according to the Post. “This information is necessary for ACF to conduct a comprehensive review of program operations and assess the extent of irregularities that may have occurred.”
Fox News Digital reached out to Governor Walz, Mayor Jacob Frey and HHS for comment but did not immediately receive a response.
