Gov. Tim Walz announces he will step down from the 2026 gubernatorial election Monday, Jan. 5, 2026 at the Minnesota State Capitol. (Photo by Nicole Neri/Minnesota Reformer)

The moment Gov. Tim Walz was cooked was little remarked upon at the time, but in retrospect illustrates how he and his administration were sleeping through an enveloping crisis.

At the late 2024 budget forecast, he said disability and autism services were driving state government spending beyond expectations. When he was asked about potential fraud in the autism program — about which we’d reported an FBI investigation six months prior — he seemed unfamiliar. I traded texts with an incredulous reporter who was there and wound up publishing a column called, “Minnesota: an easy mark.” 

More recently, Walz faced the full force of the right-wing propaganda machine in the past two months. It was a frightening sight to behold, and a healthier democracy would never be host to such a parasitical malignancy.

Although restoring American democratic habits of mind to eviscerate that propaganda machine should be on our lengthy, long-term to-do list, the lesson here for me is that the most underrated tool in the political toolbox is … governing.

Deadly dull, I know, but the word governor even has the word “govern” in it: competently administering programs to help people who need it; ensuring Minnesota’s children are learning literacy and numeracy; and managing the state’s vast infrastructure assets. That’s the job.

Former St. Paul Mayor Melvin Carter, another one-time rising star in Minnesota politics, recently faced the same sort of governing reckoning as Walz, when Mayor Kaohly Her pulled off an upset November victory promising to make stuff work again. May Democratic elected officials everywhere take notice.

We live in perilous times, no question, but Minnesotans are right to expect a minimum level of competency in these matters of public administration. It’s especially important for the party of government, i.e., the Democratic-Farmer-Labor Party, to pay attention to details, like whether a 3,000% increase in spending on the autism program is reasonable, especially when some of the providers had ties to Feeding Our Future.

Tim Walz is at heart a decent man, and he doesn’t deserve what’s been thrown at him in recent weeks — especially a despicable allegation leveled by the president of the United States and the odious propagandist Nick Shirley that Walz was involved in the assassination of former House Speaker Melissa Hortman.

He made some mistakes, but he’s not evil, unlike some of the loudest and most influential voices in American politics today, whose greed and lust for power are boundless.

Walz’s first term was marked by almost constant crisis, none of it his doing. He was a mostly steady hand, even as Republicans came to despise him during the pandemic and the aftermath of the police murder of George Floyd.

His second term comprised major legislative accomplishments — for which the credit mostly belongs to Hortman and the late Sen. Kari Dziedzic — as well as his (again, in retrospect) disastrous candidacy for vice president. All the while, thieves were stealing the people’s money with gusto.

Walz has served the community of Mankato, the people of Minnesota and his country.

And now he has saved us from what would have been a deeply divisive campaign, and which would have put the state of Minnesota under federal siege.

Unlike former President Joe Biden, who doomed his party and the country with his insistence on running for a second term, Walz is stepping aside before any more damage is done to his state and the DFL. He says he’ll focus all his energies on cleaning up the mess.

He deserves our thanks for that service and for making this decision.

Minnesota Reformer is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Minnesota Reformer maintains editorial independence. Contact Editor J. Patrick Coolican for questions: info@minnesotareformer.com.

A preschool teacher prepares lunch for students inside a day care center. (Photo by Billy Hustace/Getty Images)

WASHINGTON — States must now provide “justification” that federal child care funds they receive are spent on “legitimate” providers in order to get those dollars, President Donald Trump’s administration announced. 

The Tuesday shift in policy came following allegations of fraud in Minnesota’s child care programs, which prompted the U.S. Department of Health and Human Services to freeze all child care payments to the state. 

HHS could not offer many specifics on how the review process will play out for other states, but clarified that the money in question is provided through the multibillion-dollar federal Child Care and Development Fund, or CCDF. 

“States will be required to provide documentation, such as written justification, receipts, or photographic evidence, demonstrating that funds are supporting legitimate child care providers,” Emily Hilliard, a spokesperson for HHS, said in a statement to States Newsroom on Wednesday. 

CCDF provides federal funding to states, territories and tribes to help low-income families obtain child care. 

The program, administered within the Office of Child Care under HHS’ Administration for Children and Families, combines funding from the Child Care and Development Block Grant, or CCDBG, and the Child Care Entitlement to States, or CCES. 

Funding for CCDF in fiscal year 2025 stood at roughly $12.3 billion — comprising $8.75 billion from CCDBG and $3.55 billion from CCES. 

Head Start — a separate program that provides early childhood education, nutritious meals, health screenings and other support services to low-income families — does not appear to be affected. 

In a Tuesday social media post announcing the move, Health and Human Services Deputy Secretary Jim O’Neill said he had “activated our defend the spend system for all ACF payments” and “starting today, all ACF payments across America will require a justification and a receipt or photo evidence before we send money to a state.” 

He clarified in a separate post shortly after that “funds will be released only when states prove they are being spent legitimately.” 

Funds undergo ‘regular audits’

“Federal funding enables millions of parents in every state and Congressional district to access and afford quality child care,” Sarah Rittling, executive director of First Five Years Fund, a federal advocacy group, said in a Wednesday statement. 

Rittling added that “these funds are essential to the nation’s well-being, allowing parents to work while ensuring their children are cared for and safe.” 



She also described the reports of potential fraud as “deeply concerning” and pointed out that “state oversight through regular audits is required by law to ensure that every dollar intended to protect and support young children is used properly and effectively.” 

“At the same time, we must ensure that nothing takes away from making sure funds for child care continue to reach the children and families who depend on them,” she said. 

A store displays a sign accepting Electronic Benefits Transfer, or EBT, cards for Supplemental Nutrition Assistance Program purchases for groceries on Oct. 30, 2025 in New York City. (Photo by Spencer Platt/Getty Images)

The U.S. Department of Agriculture will begin next week to block nutrition assistance funding for states led by Democrats that have not provided data on fraud in the program, Secretary Brooke Rollins told President Donald Trump at a Cabinet meeting Tuesday.

USDA sought data from states earlier this year related to their administration of Supplemental Nutrition Assistance Program, or SNAP, benefits, Rollins said Tuesday. She added the data was needed to address fraud that she called “rampant” in the program that helps 42 million people afford groceries.

Most states complied with the request, but 21, mostly run by Democrats, refused, she said. A USDA spokesperson later implied the department was missing data from 22 states.

“As of next week, we have begun and will begin to stop moving federal funds into those states until they comply, and they tell us and allow us to partner with them to root out this fraud and to protect the American taxpayer,” Rollins said.

A USDA spokesperson in an email listed 28 states, plus one territory, from which they said the department has received data.

That would leave the following 22 states, all led by Democratic governors, that have not provided data: Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Kansas, Kentucky, Maine, Maryland, Massachusetts, Michigan, Minnesota, New Jersey, New Mexico, New York, Oregon, Pennsylvania, Rhode Island, Washington and Wisconsin. 

The spokesperson provided some additional details of the initiative, including that the department was targeting administrative funds, and that the next step would be a formal warning.

Blue states sought to protect bad actors, including criminals and immigrants in the country without legal status, “over the American taxpayer,” the statement said.

“We have sent Democrat States yet another request for data, and if they fail to comply, they will be provided with formal warning that USDA will pull their administrative funds,” the spokesperson said.

Court records show the department sent the states a new request for data on Nov. 28, and asked for a response within seven days, which would be Friday. 

The letter was reproduced as part of a suit the 22 states have brought against the administration over the request for SNAP recipients’ data.

Leading Dem calls threat illegal

It’s unclear what authority Rollins would have to block funding, which Congress has appropriated.

The federal government pays for all benefits for SNAP, which was formerly known as food stamps. It splits the administrative costs with states.

The USDA spokesperson did not answer a direct question about the legal authority for withholding funds.

Democrats on the U.S. House Agriculture Committee said any effort to block SNAP funding would be illegal.

“Yet again, Trump and Rollins are illegally threatening to withhold federal dollars,” a social media post from an official account of committee Democrats read. “SNAP has one of the lowest fraud rates of any government program, but Trump continues to weaponize hunger.”

The committee’s lead Democrat, Angie Craig of Minnesota, issued her own statement that also accused the administration of “weaponizing hunger” and said Rollins “continues to spew propaganda.”

“Her disregard for the law and willingness to lie through her teeth comes from the very top – the Trump administration is as corrupt as it is lawless, and I will not sit silently as she carries out the president’s campaign against Americans struggling to afford food in part because of this president’s tariffs and disastrous economic policies.”  

SNAP fraud

The data USDA has sought from states includes verification of SNAP recipients’ eligibility, along with a host of personal information such as Social Security numbers.

An early USDA review of data provided by the 28 states and Guam “indicates an estimated average of $24 million dollars per day of federal funds is lost to fraud and errors undetected by States in their administration of SNAP,” the department said in the Nov. 28 letter.

Preventing those losses could save up to $9 billion per year, the letter added.

But the types of fraud cited in some of the public statements from Rollins and the department are rare, existing data show.

A 2023 USDA report showed about 26,000 applications, roughly 0.1% of the households enrolled in SNAP, were referred for an administrative or criminal review.

People in the country illegally have never been authorized to receive SNAP benefits.

“The long-standing data sources indicate that intentional fraud by participants is rare,” Katie Bergh, a senior food assistance policy analyst for the left-leaning think tank Center for Budget and Policy Priorities, said in a November interview.

Trump administration target

SNAP has been a consistent target for cuts during Trump’s second presidency.

The issue was a focal point during the six-week government shutdown, during which the administration reversed itself often but generally resisted calls — from states, advocates, lawmakers and federal judges — to fund food assistance.

Shortly after the government reopened, Rollins in television interviews said she would force all recipients to reapply for benefits, a proposal seen as logistically challenging by program experts.

And the Republican taxes and spending law passed by Congress and signed by Trump earlier this year included new work requirements and other restrictions on SNAP eligibility that advocates say will lead to major drops in benefits. 

The law will also make states pay for some share of benefits and increase the share of administrative costs that states are responsible for, potentially leading some states to cut benefits.

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We found no documentation confirming a Sept. 29 statement by U.S. Sen. Ron Johnson, R-Wis., that 6 million people unknowingly received health insurance through the Affordable Care Act.

Johnson cited a report by Paragon Health Institute, a think tank aligned with the Trump administration. 

The report produced an estimate, not a count, claiming 6.4 million people were fraudulently enrolled in Obamacare. It said they were not income-eligible, including millions who “appear to be enrolled without their knowledge.”

The methodology was faulted by Blue Cross Blue Shield, the National Association of Benefits and Insurance Professionals and the American Hospital Association. 

Paragon stood by its work.

Fraud is much more common among brokers misappropriating patients’ identities than by patients, said KFF Obamacare program director Cynthia Cox and Justin Giovannelli of Georgetown University’s Center on Health Insurance Reforms.

Consumers are cautioned about offers to enroll them in Obamacare.

This fact brief is responsive to conversations such as this one.

Sources

• U.S. Sen. Ron Johnson: Email
• Paragon Health Institute: The Greater Obamacare Enrollment Fraud: The Fraud Got Much Worse in 2025
• Politico: The think tank driving health policy on Capitol Hill — and dividing Republicans
• Washington Post: As GOP eyes ACA cuts, a conservative group highlights rampant fraud
• Paragon Health Institute: Answering the Critics: How Paragon Discovered Enrollment Fraud in the ACA Exchanges
• Blue Cross Blue Shield: The facts about the individual marketplace
• National Association of Benefits and Insurance Professionals: Facts Over Fear: NABIP Rebukes Paragon’s Misleading ACA Claims
• American Hospital Association: Setting the Record Straight: Separating Fact from Fiction on Health Insurance Marketplace Fraud
• U.S. Department of Health and Human Services: Consumer Fraud in the Health Insurance Marketplace

Do 6 million people receive Obamacare health insurance without knowing it? is a post from Wisconsin Watch, a non-profit investigative news site covering Wisconsin since 2009. Please consider making a contribution to support our journalism.