Chair Foxx Statement on Holding Walz’s Minnesota Department of Education Accountable for “Largest COVID-19 Fraud Scheme in the Nation”
WASHINGTON, D.C.,
January 2, 2025
Education and the Workforce Committee Chairwoman Virginia Foxx (R-NC) today issued the following statement on the Committee’s efforts to hold Governor Tim Walz’s administration accountable for what has been called the “largest COVID-19 fraud scheme in the nation”:
“A taxpayer-funded program to help hungry children was abused. As a result, children and taxpayers were negatively impacted. This is unacceptable. Although the USDA OIG was encouraged to investigate this fraud, it didn’t take action until the Committee’s investigation was underway. The internal USDA OIG review found a number of changes are necessary to ensure that the OIG handles fraud appropriately. The Committee is dedicated to ensuring taxpayer dollars are used efficiently and effectively and will continue to work with the USDA OIG to ensure this fraud doesn’t happen again,” said Chairwoman Foxx. BACKGROUND: Between 2022 and 2024, the U.S. Attorney for the District of Minnesota charged 70 individuals associated with Minnesota-based Feeding Our Future (FOF) for their alleged roles in defrauding the U.S. Department of Agriculture (USDA) of over $250 million in taxpayer funds—money intended to feed hungry children. To date, five individuals have been convicted of fraud that the assistant U.S. attorney on the case called “not just criminal, [but] depraved and brazen.” Charges include federal programs bribery, wire fraud, conspiracy, and money laundering. While dozens are still awaiting trial, questions remain regarding the role of the Minnesota Department of Education’s (MDE) administration of the Federal Child Nutrition Programs and its oversight of FOF. The Child and Adult Care Food Program (CACFP) and the Summer Food Service Program (SFSP) are USDA-funded, state agency-administered Federal Child Nutrition Programs intended to provide reimbursement for meals to eligible children. States contract with entities that provide meals and then claim reimbursement for those meals. USDA provides the funding for these reimbursements while state agencies generally administer the programs such as coordinating reimbursement of funds and providing oversight of meal sites. MDE is the designated state agency responsible for administering both CACFP and SFSP in Minnesota. FOF was a nonprofit organization approved by MDE to be a sponsor of federal Child Nutrition Programs. Criminal charges allege that individuals, including FOF's leader, conspired to fraudulently claim $250 million in federal Child Nutrition Program funds that were allegedly spent instead on luxury vehicles, real estate, and other unlawful purchases. IN CASE YOU MISSED IT: On September 26, 2024, Chairwoman Foxx penned an op-ed for Fox News ripping Governor Walz for overseeing the “greatest grift in U.S. history”—a $250 million scheme that took funds from hungry children. On September 4, 2024, Chairwoman Foxx issued a subpoena to Governor Tim Walz’s administration to hold it accountable in what has been called the “largest COVID-19 fraud scheme in the nation.” Subpoenas were also issued to the Biden-Harris administration’s USDA and its Office of Inspector General. On June 12, 2024, Chairwoman Foxx, joined by Oversight and Accountability Committee Chairman James Comer (R-KY), Agriculture Committee Chairman Glenn “GT” Thompson (R-PA), Nutrition, Foreign Agriculture, and Horticulture Subcommittee Chairman Brad Finstad (R-MN), Rep. Tom Emmer (R-MN), Rep. Michelle Fischbach (R-MN), and Rep. Pete Stauber (R-MN), sent a letter to Minnesota Commissioner of Education Willie Jett requesting details on the MDE’s role in the situation. |