Sen. Ashley Moody is leading a group of Republican senators demanding answers from outgoing Minnesota Gov. Tim Walz following a federal report of widespread fraud and mismanagement involving child care assistance programs in the state.
Mr. Moody, along with Senate Health, Education, Labor, and Pensions Committee Chairman Bill Cassidy (R-Louisiana), Majority Leader John Thune (R-South Dakota), Finance Chairman Mike Crapo (R-Idaho), Majority Leader John Barrasso (R-Wyo.), and the entire Senate Republican Conference, signed a formal letter calling for detailed accountability measures from the Walz administration. Lawmakers cited an ongoing federal investigation and serious concerns about how Minnesota handled billions of dollars in federal welfare and child care payments.
The move comes as the Trump administration freezes child care funding to Minnesota and several other states until it verifies how federal funds are spent. Federal prosecutors are actively investigating what authorities are calling a massive fraud across multiple social welfare programs.
Moody said the goal is simple: to ensure that federal funds intended for low-income families and at-risk children are not misused.
“Taxpayer dollars must be protected and vulnerable families must not be left short because of systemic oversight failures,” Moody said in a joint statement. “Minnesota owes the public a full explanation of how such a massive fraud was allowed to occur.”
Scope of misconduct requires national scrutiny
A federal investigator’s report estimates that since 2018, the total amount of fraud across Minnesota’s social services system, spanning child care, nutrition, Medicaid and housing programs, could be in the billions of dollars.
One high-profile example is the “Feeding the Future” scandal, in which more than 50 people were convicted of misappropriating hundreds of millions of dollars in federal school lunch program funds during the pandemic. Senators say the incident highlights deeper structural weaknesses in the state’s oversight and compliance system.
Senators demand answers from Walz
Mr. Moody and his colleagues submitted a series of pointed questions to Governor Walz, asking him to respond in writing by January 22, 2026. The investigation seeks clarification on the following:
Minnesota’s progress toward federal mandates on comprehensive audits Timeline for meeting federal verification requirements Whether the state has implemented additional anti-fraud measures How often Minnesota conducts on-site inspections of child care providers Number of investigations, discoveries, and instances of fraudulent billing since 2018 Why Minnesota has not fully adopted federal recommendations such as real-time attendance tracking outlined in the May 2025 HHS Office of Inspector General audit
The senators also want complete documentation for all child care providers that have received federal funds since 2018, including attendance data, licensing records, inspections, complaints, and findings.
Moody reporters call for federal control
Moody emphasized that Congress has a constitutional responsibility to oversee federal spending, especially when fraud is suspected.
“Congress controls the purse strings, and it is our duty to ensure that federal funds are spent appropriately,” Moody said. “Minnesota’s failures raise serious questions about the integrity of its system and the potential national impact if immediate corrective action is not taken.”
Dozens of senators join Moody’s effort
In addition to Moody and the Senate Republican leadership team, they include Susan Collins (R-Maine), Ted Cruz (R-Texas), Rand Paul (R-Ky.), Lindsey Graham (R-S.C.), Rick Scott (R-Fla.), Marsha Blackburn (R-Tennessee), John Cornyn (R-Texas), Mitch McConnell (R-Ky.), and Chuck Grassley (R-Iowa).
The unified Senate Republican conference has indicated that scrutiny of Minnesota’s handling of federal funds could increase in the coming weeks.
