Minnesota Republicans have unveiled legislation that would require governors and other state officials to end fraud in their states by reporting credible suspicions of fraud involving federal funds to the Federal Bureau of Investigation (FBI) within 180 days.
On July 2, U.S. Rep. Pete Stauber (R-MN) sponsored the Federal Responsibility and Accountability for Unchecked Dereliction (FRAUD) Act, H.R. 9588, alongside four original cosponsors, including U.S. Rep. Tom Emmer (R-MN). The introduction of the legislation follows the June 8 release of a U.S. House Oversight and Government Reform Committee report that found Minnesota state officials — including Gov. Tim Walz and Attorney General Keith Ellison — knew of widespread fraud in the state but did not act.
“Billions of taxpayer dollars were stolen in Minnesota because state leaders like Tim Walz looked the other way and even threatened to retaliate against state whistleblowers who tried to sound the alarm,” Rep. Stauber said. “To this day, none of these so-called leaders have been held accountable for this stunning failure of public trust.”
The FRAUD Act, he noted, would ensure any official “who knowingly fails to report fraud” faces criminal prosecution and is never able to oversee the distribution of federal funds again.
“Turning a blind eye to fraud is just as bad as committing it, and it’s time the consequences reflect that,” he added.
Additionally, H.R. 9588 would require states to annually certify compliance with the reporting requirements in order to remain eligible for certain federal funding, and impose criminal penalties on covered officials who knowingly fail to report fraud or obstruct federal, state, or inspector general investigations.
The bill also would allow federal agencies to prohibit or debar convicted officials from overseeing the distribution of federal funds, according to a bill summary provided by the lawmakers.
“Fraud is wrong, plain and simple. Unfortunately, we have state leaders who ignored and enabled the problem, resulting in billions of dollars in fraud,” Rep. Emmer said. “The House Oversight Committee confirmed what we all knew: Gov. Walz and other state officials were aware of the fraud and yet did nothing. The FRAUD Act will ensure accountability and protect taxpayer funds.”
Following release of the committee’s report, the Minnesota Republican delegation sent a June 10 letter to Walz and Ellison demanding their resignation for failure to address fraud within the state’s federally funded programs. The delegation has not received a response, according to Rep. Emmer.