The walls are “caving in” on Democrat Minnesota Governor Tim Walz, House Oversight Committee Chairman James Comer (R-KY) announced Friday, updating his committee’s probe of the billion-dollar fraud scandal uncovered in the state.
In an interview on Fox News Channel, Chairman Comer identified the state whistleblowers who exposed the fraud as “the most important people” he expects to testify before Congress. After Gov. Walz ignored their warnings “for years,” they’ve now stepped forward to alert the entire country of the fraud that was taking place, Comer said:
"The most important people are the state whistleblowers, the state employees who put that tweet out that we all are familiar with, a few weeks ago, that alerted America to the massive fraud.
“These state employees also alleged that they had warned both Governor Walz and attorney general Ellison for years that this fraud was occurring and yet nothing was taking place.
“So, we are going to bring the state employees in. We are going to get their sworn testimony. We appreciate their bravery in coming forward.”
“We’re also going to bring in state lawmakers and Minnesota mayors – because the walls are caving in on Tim Walz,” the Oversight chairman said, explaining the harm the fraud inflicted on Minnesota’s citizens:
“This massive amount of fraud is affecting and impacting every citizen in Minnesota because they’re having to cut services because so much of the money for social programs was wasted and defrauded by this Somali population.”
Comer detailed a plan to “follow the money,” then identify and hold accountable those responsible for the fraud:
“We’re going to try to identify who was responsible for this. We’re going to try to identify banks that we can subpoena their bank records so we can follow the money to see how much was taken, who took it, and then who do we need to hold accountable and hopefully we’ll have some criminal referrals at the end of the investigation.”
Because Walz ignored warnings, refused to hold the fraudsters accountable and won’t accept responsibility, U.S. Small Business Administration (SBA) Administrator Kelly Loeffler said Friday that she is ending funding to his state.
“Today, I informed Governor Tim Walz that SBA is halting $5.5 million in annual funding to Minnesota pending further review,” Loeffler announced in a social media post sharing her letter to Walz and describing millions of dollars of additional potential fraud:
“This action follows alarming findings: individuals indicted in the $1 billion Somali fraud scheme also received at least $3 million in PPP (Paycheck Protection Program) loans, and SBA has since identified 13,600 additional PPP loans in Minnesota - totaling $430 million - suspected as fraudulent.”
“With dozens of investigations underway, the conclusion is unavoidable: Minnesota cannot be trusted to administer federal tax dollars,” the SBA administrator concluded.
“Its socialist welfare system has enabled fraud at industrial scale, at the expense of honest Americans - and these are the consequences.”
Read more: pic.twitter.com/EBgSjmBq7q
— Kelly Loeffler (@SBA_Kelly) December 23, 2025
