WASHINGTON, D.C. December 29, 2025 – U.S. Secretary of Labor Lori Chavez-DeRemer has accused Minnesota leaders, including Governor Tim Walz and Representative Ilhan Omar, of enabling a large-scale fraud network that allegedly abused federal funds across multiple agencies.
In a post on X (formerly Twitter), Chavez-DeRemer described the scheme as involving “massive” corruption, thanking “Patriots” for helping expose it. Her statement quoted an earlier post by Secretary of Education Linda McMahon, which highlighted a fraudulent business in Minnesota that misspelled “learning” on its building yet received $1.9 million in federal funds while posing as a daycare.
The controversy centers on allegations of widespread misuse of taxpayer money in programs intended for child care and education, with claims that shell entities exploited lax oversight under previous state leadership.
Chavez-DeRemer’s post read: “The massive Minnesota fraud network has abused federal funds across multiple federal agencies thanks to unbelievably miserable ‘leadership’ from politicians like @GovTimWalz and @Ilhan.”
The accusations come amid ongoing scrutiny of federal spending in Minnesota, particularly related to community programs serving immigrant populations. Critics have pointed to inadequate verification processes that allowed fraudulent claims to go undetected for years.
Supporters of the targeted officials have dismissed the claims as politically motivated, arguing that federal agencies share responsibility for oversight failures.
The Department of Labor has not announced specific investigations tied to the post, but the statements signal heightened attention from the Trump administration to rooting out waste and fraud in federal programs.
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