House Oversight panel hears Minnesota lawmakers describe years of fraud, whistleblower retaliation and $9 billion estimate

WASHINGTON — Lawmakers from Minnesota told the House Oversight and Government Reform Committee on Tuesday that whistleblowers, local audits and federal indictments have exposed extensive fraud across state social-service programs and urged federal investigators to press prosecutions and tighten controls.

“Federal prosecutors estimate that these criminals have stolen at least $9,000,000,000,” said Rep. James Comer, the committee chair, in opening remarks that framed the hearing around alleged misuse of federal funds in childcare, Medicaid and housing programs. Comer and Republican members pressed witnesses who lead a Minnesota legislative fraud panel to describe systemic failures, alleged retaliation against employees who raised concerns, and whether state officials impeded criminal probes.

The witnesses — Rep. Kristin Robbins, who chairs Minnesota’s fraud prevention and state agency oversight panel; Rep. Walter Hudson; Rep. Marion Rarick; and former federal prosecutor Bridal Beaulieu — described a long-running pattern of red flags dating back several years. Robbins said her committee has held numerous hearings and set up a public reporting portal that produced hundreds of whistleblower tips. “The time for justice and accountability is now,” Robbins said.

Hudson and…