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Legislative News and Views - Rep. Lisa Demuth (R)

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Legislative update

Friday, February 14, 2025

Dear Neighbor,

It’s been a great week at the Capitol, with House committees off and running and a robust schedule as we work to move priority bills through the process.

Fraud, waste and abuse in state government programs is one subject that’s been in the news a lot lately, and I’m pleased a new committee House Republicans established to tackle that issue had its first official meeting this week. It is called the House Fraud Prevention and State Agency Oversight Policy Committee, and its first hearing focused on the oversight of taxpayer-funded grants to nonprofits.

State officials outlined systemic issues in grant management and oversight by state agencies that need to be addressed and we will continue working to do so. For example, a House Republican bill I co-authored (HF 1) would create an independent Office of Inspector General to root out the billions of dollars in fraud, waste, and abuse.

Meanwhile, House Republican leaders this week sent a formal request to U.S. Attorney General Pam Bondi, urging the Department of Justice (DOJ) to launch a comprehensive investigation into fraud and mismanagement that has cost taxpayers over $610 million.

The extent of fraud occurring under the current administration is staggering, and the lack of accountability from state agencies is unacceptable. We are calling on the DOJ to step in where state leadership has failed. Our DOJ request follows years of documented mismanagement and significant losses to fraudsters in human services programs and other state-run programs. Despite numerous reports from the Office of the Legislative Auditor detailing oversight failures, not a single legislative hearing has taken place on the issue in six years.

Minnesotans deserve better. House Republicans are determined to make sure taxpayer dollars are protected, used responsibly and reach people truly in need. We are taking this issue seriously and will continue doing our best to uncover abuses, add proper protections and ensure bad actors are held accountable.

In addition to requesting a DOJ investigation, our letter urges the Trump Administration to quickly nominate and confirm a new permanent U.S. Attorney for Minnesota to ensure a thorough federal response to the rampant fraud in Minnesota.

Expect fraud, waste and abuse to be a major talker at the Capitol throughout this session. I look forward to seeing our new committee do good work to address this issue and thank Rep. Robbins for her leadership as Chair of this committee. She has underscored that addressing fraud and government accountability is not a partisan issue, but a separation of powers duty for our legislature to oversee the executive branch’s agencies.

Until next time, I hope you enjoy your weekend. As always, your input is welcome.

Sincerely,

Lisa

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