As federal prosecutors continue investigating what has been called the largest COVID-19 relief fraud scheme in U.S. history, Minnesota House Speaker Lisa Demuth says the $1 billion scandal is just the “tip of the iceberg.”
According to Fox News, Demuth, a Republican candidate vying to unseat Gov. Tim Walz, told the outlet that the governor bears “full responsibility” for the fraud uncovered so far.
“This falls squarely on his shoulders. He’s the governor of the state and needs to take full responsibility,” she said.
The controversy centers on Feeding Our Future, a Minnesota nonprofit accused of diverting federal funds meant for child-nutrition programs during the COVID-19 pandemic.
At least 78 defendants have been charged in the scheme, which federal prosecutors estimate siphoned roughly $300 million in taxpayer dollars.
“There has been that lack of accountability and lack of oversight that’s been needed,” Demuth said. “The governor has chosen the commissioners, put them into place, and there needed to be an accountability where he or his office were overseeing the work done by the commissioners in every agency.”
Demuth said concerns about fraud in the state’s childcare programs date back to 2017 and 2018, before she joined the legislature.
“When I think about someone leading the state, regardless of how it happened, the fact that it has continued on this far … I think this is probably the tip of the iceberg,” she said.
House Oversight Chairman James Comer, R-Ky., is leading a federal probe into Walz’s role in the scandal, claiming “because of Governor Walz’s negligence, criminals — including Somali terrorists — stole nearly $1 billion from the program while children suffered.”
Demuth emphasized that fraud must be addressed regardless of the community involved.
“To ignore things or not handle it because you are afraid of how that would be perceived … knowing that our tax dollars from the entire state have been wasted and lost in fraud, that is wrong for all Minnesotans,” she said.
If elected, Demuth promises to launch statewide investigations, hold officials accountable, and implement an Office of Inspector General to prevent fraud. “I will work with the legislature to pass a non-partisan Office of Inspector General who will be empowered to root out fraud in all parts of government,” her campaign website states.
Walz has acknowledged responsibility in media interviews, but has rejected accusations of targeting any specific community. “Minnesota is a generous state … but that attracts criminals. Those people are going to jail, and we are doing everything we can,” he said.
Demuth’s campaign focuses on eradicating systemic fraud and ensuring stricter oversight of state programs ahead of the 2026 gubernatorial election.
