AFPI-MN Responds to Governor Walz’s Final State of the State Address as Fraud Toll Reaches $9 Billion
MINNEAPOLIS, MN—America First Policy Institute (AFPI) Minnesota state chapter Executive Director Zach Freimark issued the following statement ahead of Governor Tim Walz’s eighth and final State of the State address. “Fraud is expected to be on the agenda—and it should be. But before he takes that podium, Minnesotans deserve the full accounting of what happened.”
The House Oversight Committee has made clear that criminals in Minnesota stole an estimated $9 billion in taxpayer funds intended to feed children, support autistic children, house low-income and disabled Americans, and provide healthcare to vulnerable Medicaid recipients. Here is a record of where Minnesota taxpayers’ money actually went:
- Feeding Our Future grew from $307,000 in 2018 to $199 million in 2021—and federal prosecutors say the vast majority was fraudulent.
- Housing Stabilization Services went from $27 million in 2021 to $105 million in 2024, against an original estimate of $2.6 million per year—shut down in August 2025 after state officials discovered large-scale fraud. Fraud became so rampant, out of state fraudsters came to Minnesota to exploit programs.
- Autism program spending went from $24 million in 2019 to $342 million in 2024.
- Integrated Community Supports exploded from $4.6 million in 2021 to $170 million in 2024.
- Defendants spent stolen taxpayer dollars on cars, property, and luxury travel, and wired millions overseas—including to banks and companies in China.
- Over $1 billion in federal taxpayer dollars was stolen after hundreds of state employees raised fraud warnings that were ignored.
Minnesota has been in a downward spiral over the last 8 years:
- Violent Crime increased 19%
- Reading Proficiency went from 59% to 49%. Math Proficiency went from 55% to 45%
- National Education Ranking went from #6 to #19
- Median Household Income went from $98,000 to $92,000. For the first time ever, the average income for Minnesotans is below the national average.
- Net Migration –48,000
In response to the fraud and abuses uncovered in Minnesota and other states, the America First Policy Institute is fighting back. AFPI has launched a new public toolkit geared toward state legislators to combat waste, fraud, and abuse across public assistance programs, as well as targeted food stamp program reforms. Hannah Anderson, the Director of Healthy America at AFPI, stated, “The Trump administration is holding the line for American taxpayers. VP Vance chaired the first meeting of the Task Force to Eliminate Fraud, calling for a ‘whole-government approach’ and stating that fraud is ‘not just the theft of the American people's money—it is also the theft of critical services that the American people rely on.’ This is why we recently released a toolkit for states on local lawmakers to ensure that every dollar committed to vulnerable Americans is not diverted towards criminal enterprise."
Tonight, as Governor Walz delivers his final address, the America First Policy Institute will continue to focus on policies that ensure Minnesota—and every state—never finds itself here again.