As Gov. Tim Walz (D-MN) tries to gaslight his way out of the massive fraud scandal that has engulfed his administration in recent months, 98 Minnesota mayors have collaborated on a letter voicing their consternation over the state’s fiscal mismanagement and the trickle-down effect it is having on the cities they serve.
The letter, addressed to state lawmakers and Walz, states:
Minnesotans watched an historic $18 billion surplus disappear in a single biennium, only to now face an updated projected $2.9 billion-$3 billion deficit in the 2028-29 biennium.As mayors, we see firsthand how these decisions ripple outward. Fraud, unchecked spending, and inconsistent fiscal management in St. Paul have trickled down to our cities—reducing our capacity to plan responsibly, maintain infrastructure, hire and retain employees, and sustain core services without overburdening local taxpayers.
The mayors cite a recent Minnesota Chamber of Commerce report showing just how far the state has fallen in national rankings:
The mayors argue that these challenges are not theoretical; they reflect the very real pressures impacting their cities. And they argue that it is their constituents who are paying the price.
Property taxes throughout the state are projected to rise by an average of 8.7% in 2026. The mayors claim that rather than the increases being “local decisions,” the state’s “policies, mandates, and cost shifts” have forced city councils to raise taxes to balance their own budgets.
Fox News reached out to Minnesota State Sen. Andrew Lang (R), who serves as the Lead on the chamber’s State and Local Government Committee, who said in a statement:
Governor Walz and Democrats passed unaffordable spending and tax increases along with unfunded mandates on the promise it would make life more affordable. In reality they just passed down the costs to local governments, schools, and small businesses, who in turn pass down costs to local taxpayers and consumers….This letter is a warning that we must reduce state spending, stop the massive fraud plaguing our state, and remove unnecessary mandates to keep life affordable for everyone.
In May, as the legislative session was winding down, Brock Bergey, a writer for local media outlet KTTC-TV, asked a good question: “What happened to Minnesota’s nearly $18 billion surplus from 2023?”
Bergey pinned the blame on DFL Party lawmakers, who then controlled both chambers of the state legislature. [The DFL (Democratic-Farmer-Labor) Party is Minnesota’s state affiliate of the national Democratic Party.] According to Bergey, “DFLers used most of the surplus to approve a $72 billion, two-year budget—the largest in Minnesota history.”
It should be noted that this outsized spending commitment was made well before the latest allegations of large-scale fraud came to light. At the time, the $250 million Feed Our Future fraud case had already been making headlines for years, but the far larger scandals — potentially involving billions of dollars — had not yet been uncovered.
Last month, Ryan Thorpe and Christopher Rufo of The Manhattan Institute, a conservative think tank, reported findings from an investigation alleging that millions of dollars in Minnesota taxpayer funds were funneled to entities in Somalia. According to the report, a portion of those funds may have gone to the Somali terrorist organization Al-Shabaab.
The report prompted more expansive audits of state government programs. Investigators now claim the total amount of fraud could ultimately reach into the billions.
In the video below recorded last Thursday, Assistant U.S. Attorney Joe Thompson tells reporters that fraud in the state’s Medicaid program might exceed $9 billion.
The following day, Walz, accompanied by several administration officials, addressed the allegations, at a press conference of their own. Walz said that while he takes responsibility for the fraud that occurred on his watch, he claimed his opponents are exaggerating the extent of the fraud for political gain.
Deputy Department of Human Services Commissioner John Connelly told reporters that rather than billions of dollars in total fraud, his department believes the true number is far less: “We’ve seen evidence of tens of millions of dollars to this point. We don’t have evidence in hand to suggest we have $9 billion in fraud in these benefits over the last seven years and if there is evidence, we need it so we can stop payment.”
For his part, Minnesota Attorney General Keith Ellison released a video on X casting himself as a relentless, hard-charging prosecutor — one for whom nothing slips through the cracks. The message was clear: he is unafraid to hold wrongdoers accountable and works hard everyday to protect taxpayer dollars. His office is “on it,” identifying and addressing misconduct before it can metastasize.
Can Walz and Ellison successfully convince Minnesotans to disregard what investigators are uncovering? As audits of state programs expand and the allegations of fraud grow more serious, their attempt to dismiss concerns as political exaggeration may prove increasingly difficult to sustain.
America is watching.
Elizabeth writes commentary for Legal Insurrection and The Washington Examiner. She is an academy fellow at The Heritage Foundation. Please follow Elizabeth on X or LinkedIn.
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