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Walz pushes back on MN fraud allegations

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December 29, 2025, News

Minnesota Governor Tim Walz is facing a lot of pressure as the scope of the fraud that took place in his state is getting more national attention. It is not just about the fraud but rather how blatant it was in the state, yet nobody seemed to realize it was taking place, or did not want to call it out for fear of being called a racist.

So, now Walz is having his two cents in the argument, only I don’t really think anyone cares at this point.

The Sign

I just watched a video of a YouTube reporter who did a significant segment exposing all the fraud that is taking place.

Independent journalist Nick Shirley visited several of these “businesses” in the state, mostly childcare centers that had no children or any sign of children.

One of the businesses even misspelled “Learning” on its sign, which called the business “Quality Learing Center.”

After the video was posted online, House Majority Whip Tom Emmer (R-MN) posted, "4 million dollars of hard-earned tax dollars going to an education center that can’t even spell learning correctly. Care to explain this one, Tim Walz?"

Cutting Funds

With all this fraud, Small Business Administration (SBA) Administrator Kelly Loeffler decided that no more money will be going to Minnesota from her agency, at least for the time being.

Benny Johnson reported, “SBA Administrator Kelly Loeffler tells me she is ‘disgusted and sickened’ by Nick Shirley’s expose of Somali small business fraud and is taking immediate action.

“SBA is cutting off and clawing back ALL SBA grants to Minnesota, effective immediately.”

Now, this fall falls on Walz, but it also falls on the House Oversight Committee and the state legislature, all of whom are supposed to be monitoring programs funded with tax dollars.

Walz Pushes Back

Walz has been taking some haymakers, but now he is pushing back, looking to deflect the blame.

His office stated, "The governor has worked for years to crack down on fraud and ask the state legislature for more authority to take aggressive action.

"He has strengthened oversight — including launching investigations into these specific facilities, one of which was already closed."

Now, if I were running the state or in House Oversight, I would be paying people to check on these businesses regularly to ensure they were on the up and up. Audits would be taking place, and reports would have to be filed on a monthly basis to show spending and the need for the funding. So why was none of that happening?

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