Minnesota Governor Unveils Anti-Fraud Plan Amid Federal Immigration Enforcement

Minnesota's Democratic Governor Tim Walz announced new anti-fraud legislation following President Trump's immigration crackdown in the state. The proposal comes as the federal government has frozen over $2 billion in Medicaid funding to Minnesota based on fraud allegations.

Minnesota’s Democratic Governor Tim Walz unveiled new anti-fraud legislation Thursday following a federal immigration enforcement operation in his state that was justified by allegations of program fraud.

The announcement comes after the Trump administration conducted an extensive immigration enforcement campaign in Minnesota over several months, which included incidents where federal agents fatally shot two American citizens in January. Federal officials also suspended funding for various social programs based on fraud claims, though the deportation operations have been reduced this month.

“This package strengthens oversight, improves detection, expands enforcement, and increases penalties to protect every dollar Minnesotans depend on. We’ve followed the experts, audits, and proven roadmaps; now it’s time for the Legislature to act,” Walz stated Thursday.

The governor’s “Anti-Fraud Package” would enhance auditing procedures and internal oversight, create a centralized inspector general office, broaden the Bureau of Criminal Apprehension’s authority to issue subpoenas, and impose lifetime prohibitions on state contracts and grants for those found guilty of fraud.

Additional provisions include establishing a new public funds theft law, increasing fraud penalties by 20%, and extending the statute of limitations to seven years for specific fraud-related offenses.

On Wednesday, the Trump administration suspended $259 million in deferred Medicaid payments to Minnesota. State officials report this latest funding freeze adds to federal withholding of more than $2 billion in annual Medicaid support for Minnesota.

Minnesota’s health department has submitted a corrective action plan seeking to persuade the Trump administration to restore the funding.

President Trump has made claims about fraudulent activities within Somali communities in Minnesota. The administration has characterized its actions as efforts to combat fraud and enhance national security.

Civil rights organizations argue the enforcement actions have fostered a climate of fear and contend that Trump has exploited individual fraud cases to justify targeting immigrant populations. These groups also question Trump’s commitment to fighting fraud, pointing to his previous pardons of individuals with fraud convictions.