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Rep. Jody Arrington alleges extensive Minnesota benefit fraud, criticizes Gov. Tim Walz

Media Interview (radio/TV) · December 2, 2025

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Summary

In a broadcast interview, Rep. Jody Arrington said a Manhattan Institute report found roughly $1 billion stolen from Minnesota programs and accused Gov. Tim Walz of failing to act after whistleblower warnings; claims that funds reached al-Shabaab were described as alleged and unresolved.

Rep. Jody Arrington, chairman of the House Budget Committee, told host Sean in an interview that a Manhattan Institute report and whistleblowers point to roughly $1 billion stolen from Minnesota benefit programs and accused Gov. Tim Walz of allowing the fraud to continue.

Arrington said "hundreds of employees" raised alarms and that state officials ignored warnings, leaving resources meant for "hungry kids, elderly people who need a home, and autistic kids" vulnerable to diversion. "This is a disgusting, scope and scale of fraud," he said, calling the situation "breathtaking."

The host referenced reporting he attributed to the Manhattan Institute and asked about allegations that some funds were "somehow funneled now to al-Shabaab, allegedly." Arrington said it would be "tragic" if any monies made their way to support terrorism and described the alleged misuse as morally wrong.

Arrington also tied the episode to broader concerns about federal programs, saying Democrats were pushing extensions of post‑pandemic programs such as enhanced premium tax credits that he said had large numbers of ineligible recipients in the past. "This is another program that had 6,000,000 plus ineligible people siphoning taxpayer funds away," he said.

On prosecutions, Arrington said more than 50 people have been convicted and that prosecutions remain ongoing. "The prosecution is still ongoing," he said, and criticized Gov. Walz for what Arrington described as deflection and a lack of responsibility.

Throughout the interview, Arrington framed the matter as both an administrative failure and a political one, saying officials declined to act in part to avoid accusations of racism and to avoid alienating a voting bloc. The host read comments he attributed to the president criticizing Minnesota's leadership and announcing immigration-related actions; those comments were presented for context in the interview.

The allegations aired in the interview are contested in public reporting and involve multiple claims of criminality and official inaction. Arrington cited the Manhattan Institute and whistleblowers as sources; he characterized some outcomes — convictions and ongoing prosecutions — as already occurring, but the claim that funds were sent to al-Shabaab was discussed in the interview as an allegation and was not proven on air. The segment concluded without any formal action or vote.

What’s next: Arrington said prosecutions are continuing. The interview did not include on-air responses from Minnesota officials or the Manhattan Institute; the host and guest closed the segment after brief sign-offs.