Non-Profit Accused of Misusing Funds
This non-profit is accused of misusing pandemic relief funds that were intended for feeding children, making it the focal point of the investigation.
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The fraudulent activity has raised significant concerns, prompting the House committee to take formal action.
Not Only Directed at Walz
NBC News was the first to report on the issuance of these subpoenas.
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The subpoenas were not only directed at Governor Walz but also at Minnesota’s Education Commissioner Willie Jett, U.S. Agriculture Secretary Tom Vilsack, and Phyllis Fong, the Agriculture Inspector General.
Broader Investigation into Federal Nutrition Programs
These subpoenas are part of a larger investigation into the management and oversight of federal child nutrition programs.
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The U.S. House Committee on Education and the Workforce is leading the inquiry, focusing on how the U.S. Department of Agriculture and the Minnesota Department of Education supervised these programs during the pandemic.
Feeding Our Future Fraud Scheme
The primary target of the investigation is Feeding Our Future, a non-profit organization accused of misappropriating over $250 million in pandemic relief funds.
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This fraud scheme allegedly involved diverting funds that were originally designated for child nutrition programs.
Governor Walz’s Deadline for Compliance
Although Governor Walz has not been summoned to testify before the committee, the subpoena requires him to submit relevant documents by September 18.
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This situation has increased scrutiny on Walz’s administration, particularly concerning the Minnesota Department of Education’s role in overseeing these funds.
Convictions and Criminal Charges in the Fraud Case
Earlier this year, five individuals connected to the scheme were convicted for their involvement in the fraudulent activities.
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The trial also featured an attempt to bribe a juror, with $120,000 in cash being left at her home. A total of 70 individuals have been charged in relation to this fraud.
Increased Scrutiny of Walz’s Administration
Governor Walz, who has recently gained more national prominence, is now facing questions about whether his administration should have detected and prevented the fraud.
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Republican Representative Virginia Foxx, the committee’s chairwoman, directly addressed Walz, stating, “You are well aware of the multimillion-dollar fraud that has occurred under your tenure as governor.”
Walz’s Spokesperson Responds to Allegations
In response, a spokesperson for Governor Walz condemned the fraudulent activities.
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The spokesperson called the Feeding Our Future case “an appalling abuse of a federal Covid-era program” and highlighted the Minnesota Department of Education’s efforts to stop the fraud in collaboration with the FBI.
Governor Acknowledges Oversight Failures
Governor Walz has defended his administration, although he has acknowledged areas where oversight could have been stronger.
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A state audit indicated that the education department’s oversight failures had “created opportunities for fraud,” a point Walz has conceded.
Walz’s Statement on the Audit
“There’s not a single state employee that was implicated in doing anything illegal,” Walz said in response to the audit’s findings.
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“They simply didn’t do as much due diligence as they should’ve.” Despite these challenges, Walz has maintained his defense of the state’s response to the crisis.
Committee's Frustration with Lack of Documents
Meanwhile, Representative Foxx has pointed out that the committee had previously requested documents from Minnesota’s Department of Education.
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However, she noted that the department had not provided sufficient responses to those voluntary requests. Governor Walz’s office has yet to issue any further statements regarding the subpoena or the ongoing investigation.