‘Cascade Of Systemic Failures’: Minnesota State Employees Blast Walz For ‘Massive Fraud’ In Social Services

Minnesota state employees accused Democratic Minnesota Gov. Tim Walz of bearing full responsibility for massive fraud that drained the state’s social services programs, claiming he retaliated against whistleblowers who tried to sound the alarm.

“Tim Walz is 100% responsible for massive fraud in Minnesota,” the employees wrote in a statement posted to social media. They described a “cascade of systemic failures” and alleged Walz “systematically retaliated against whistleblowers using monitoring, threats, repression, and did his best to discredit fraud reports.”

The accusations come as federal prosecutors pursue cases involving more than $1 billion in stolen taxpayer funds across three separate schemes. Prosecutors have secured 59 convictions so far in fraud tied to pandemic feeding programs, housing assistance and autism therapy services. (RELATED: Trump Terminates Protected Status Of Minnesota Somalis Over ‘Fraudulent,’ ‘Terrorizing’ Activities)

Tim Walz is 100% responsible for massive fraud in Minnesota. We let Tim Walz know of fraud early on, hoping for a partnership in stopping fraud but no, we got the opposite response. Tim Walz systematically retaliated against whistleblowers using monitoring, threats, repression,… https://t.co/cEtbnuKmgn

— Minnesota Department of Human Service Employees (@Minnesota_DHS) November 30, 2025

The whistleblowers claimed agency leaders appointed by Walz “willfully disregarded rules and laws to keep fraud reports quiet” and were “not qualified for their jobs, instead getting leadership jobs via Tim Walz’s friendship.” Staff who witnessed fraud were “shutdown, reassigned and told to keep quiet,” according to the statement.

The employees named several officials they say have escaped accountability, including Shireen Gandhi, Jess Geil, Jodi Harpstead, Natasha Merz and Eric Grumdahl.

Walz has denied that concerns about racism allegations slowed his administration’s response. He told the New York Times his administration “erred on the side of generosity” during the pandemic and pointed to new fraud prevention measures.

President Donald Trump has drawn national attention to the scandal, calling Minnesota “a hub of fraudulent money laundering activity” and Walz “seriously retarded” in a Truth Social post. Asked by reporters if he stood by the remark, Trump replied, “Yeah, there’s something wrong with Walz.”

“Do you stand by that claim of calling Tim Walz retarded?”@POTUS: “Yeah, there’s something wrong with Walz.” 🤣 https://t.co/pA9dcj0fNw pic.twitter.com/DPHhv3mRpb

— Rapid Response 47 (@RapidResponse47) November 30, 2025

The whistleblowers said they are now appealing to federal authorities for help. “We can’t fight fraud in Minnesota alone,” they wrote.