U.S. Senator Ashley Moody is main a rising bloc of Republican senators demanding solutions from outgoing Minnesota Governor Tim Walz following federal experiences of widespread fraud and mismanagement involving child-care help applications within the state.
Moody, joined by Senate Well being, Schooling, Labor, and Pensions Committee Chair Invoice Cassidy (R-LA), Majority Chief John Thune (R-SD), Finance Committee Chair Mike Crapo (R-ID), Majority Whip John Barrasso (R-WY), and all the Senate Republican Convention, signed a proper letter urgent the Walz administration for detailed accountability measures. The lawmakers cite ongoing federal investigations and important issues about how Minnesota dealt with billions in federal welfare and child-care {dollars}.
The push comes because the Trump administration has frozen child-care funding to Minnesota and a number of other different states pending verification of how federal cash was spent. Federal prosecutors are actively investigating what authorities describe as large-scale fraud throughout a number of social service applications.
Moody mentioned the target is simple: guarantee federal {dollars} meant for low-income households and at-risk kids weren’t misused.
“Taxpayer {dollars} have to be protected, and weak households should not be shortchanged by systemic failures in oversight,” Moody mentioned within the joint assertion. “Minnesota owes the general public a full accounting of how such in depth fraud was allowed to happen.”
Scope of Fraud Attracts Nationwide Scrutiny
Stories from federal investigators estimate that fraud throughout Minnesota’s social companies system—spanning child-care, vitamin, Medicaid, and housing applications—could complete billions of {dollars} since 2018.
One high-profile instance is the Feeding Our Future scandal, wherein greater than 50 people had been convicted for diverting tons of of tens of millions of {dollars} in federal meal program funds throughout the pandemic. Senators say that case highlights deeper structural weaknesses within the state’s oversight and compliance techniques.
Senators Demand Solutions from Walz
Moody and her colleagues submitted a sequence of pointed inquiries to Governor Walz, requesting written responses by January 22, 2026. The inquiry seeks clarification on:
- Minnesota’s progress complying with federal directives for complete audits
- The timeline for assembly federal verification necessities
- Whether or not the state has carried out extra fraud-prevention measures
- How usually Minnesota conducts on-site inspections of child-care suppliers
- The variety of investigations, findings, and examples of fraudulent billing since 2018
- Causes Minnesota has not absolutely adopted federal suggestions—similar to real-time attendance monitoring—outlined in a Might 2025 HHS Workplace of Inspector Common audit
The senators additionally request full documentation for all child-care suppliers receiving federal funds since 2018, together with attendance knowledge, licensing data, inspections, complaints, and investigative findings.
Moody Presses for Federal Stewardship
Moody emphasised that Congress has a constitutional duty to supervise federal spending, notably when fraud is suspected.
“Congress controls the purse strings, and it’s our responsibility to make sure federal funds are used correctly,” Moody mentioned. “Minnesota’s failures elevate critical questions concerning the integrity of its techniques and the potential nationwide impression if corrective steps aren’t taken instantly.”
Dozens of Senators Be part of Moody’s Effort
Along with Moody and the Senate GOP management staff, greater than 50 different Republican senators co-signed the letter, together with Susan Collins (R-ME), Ted Cruz (R-TX), Rand Paul (R-KY), Lindsey Graham (R-SC), Rick Scott (R-FL), Marsha Blackburn (R-TN), John Cornyn (R-TX), Mitch McConnell (R-KY), and Chuck Grassley (R-IA).
The unified Senate Republican Convention indicators that oversight of Minnesota’s dealing with of federal funds is prone to escalate within the coming weeks.
