$250 Million Fraud Scheme—Top Official Implicated

A sitting state attorney general faced accusations of bribery in a Senate hearing, with a Republican senator demanding his imprisonment over allegations he accepted campaign donations after meeting with individuals linked to a quarter-billion-dollar federal fraud scheme.

Story Snapshot

Sen. Josh Hawley accused Minnesota AG Keith Ellison of meeting with Feeding Our Future fraud suspects who donated $10,000 to his campaign, calling it bribery
The nonprofit allegedly stole $250 million in federal COVID-19 child nutrition funds, with 78 people facing federal charges in one of the largest pandemic fraud cases
Ellison denied wrongdoing, citing 300 Medicaid fraud convictions under his tenure and claiming his office assisted federal prosecutions
House Oversight Committee subpoenaed Ellison and Gov. Tim Walz for March 4 testimony on broader Minnesota welfare fraud estimated at $9 billion

The Senate Showdown That Demanded Jail Time

Sen. Josh Hawley delivered a blistering accusation during a February 12, 2026 Senate Homeland Security Committee hearing that reverberated beyond typical partisan sparring. The Missouri Republican told Minnesota Attorney General Keith Ellison directly that he belonged behind bars. Hawley’s charge centered on a 54-minute meeting in Ellison’s official office where individuals connected to the Feeding Our Future fraud allegedly asked for investigators to back off. Ten thousand dollars in campaign donations followed that meeting. Hawley labeled this sequence bribery, demanding federal prosecutors indict Ellison for corruption in handling the largest COVID-era child nutrition fraud in U.S. history.

Ellison fired back with equal intensity, rejecting every allegation. He emphasized his office’s track record of prosecuting 300 Medicaid fraudsters over seven years, including recent charges for $3 million in home health billing fraud filed just weeks before the hearing. The Minnesota Democrat insisted his office provided critical assistance to federal prosecutors pursuing the Feeding Our Future case. He accused Hawley of political grandstanding designed to damage Democratic officials ahead of election cycles. The clash exposed deep partisan fractures over who deserves blame for fraud that diverted federal funds meant for vulnerable children during a pandemic.

How a Nonprofit Stole a Quarter Billion Dollars

Feeding Our Future operated as a Minnesota-based nonprofit claiming to feed thousands of children through federally funded nutrition programs during COVID-19. Instead, the organization funneled nearly $250 million into fraudulent schemes with little food actually reaching kids. Federal investigators uncovered extensive money laundering operations tied to the nonprofit’s network. The Justice Department charged 78 individuals in connection with the fraud. Treasury officials launched additional probes examining whether stolen funds flowed to Al-Shabab, a terrorist organization based in Somalia. The scale of deception shocked federal prosecutors who described it as one of the most brazen pandemic fraud operations.

Whistleblowers approached Ellison’s office years before federal charges materialized, according to testimony at the Senate hearing. Hawley hammered Ellison on why no action occurred until after the controversial meeting and campaign donations. Ellison countered that federal authorities led the investigation with his office providing support when requested. This timeline dispute remains unresolved, with transcribed interviews of Minnesota officials scheduled for February and a House Oversight hearing set for March 4 where both Ellison and Gov. Tim Walz will testify under oath. The whistleblower allegations add another layer to Republican claims that Democratic state leadership ignored warning signs.

Minnesota’s Broader Fraud Crisis Under the Microscope

The Feeding Our Future scandal represents just one piece of a staggering fraud crisis plaguing Minnesota’s social services programs. House Oversight Committee Chairman James Comer pegged total welfare fraud in the state at $9 billion, spanning food assistance, childcare subsidies, autistic support services, housing programs, and Medicaid. Former President Trump claimed the figure exceeds $19 billion, though estimates vary by methodology and scope. A January 6, 2026 report from Minnesota’s Legislative Auditor documented systemic failures at the Department of Human Services Behavioral Health Administration, including a $680,000 grant payment made without verification, followed by the grant manager switching jobs to work for the recipient organization.

Republican investigators view the fraud epidemic as evidence of deliberate negligence by Democratic officials. Comer accused Walz and Ellison of failing to act on credible reports and retaliating against whistleblowers who exposed problems. Minnesota lawmakers testified to the Oversight Committee about alleged retaliation efforts. Ellison’s office pushed back, highlighting that DHS officials failed to implement proper controls despite prosecutorial efforts. The Department of Human Services faced criticism from both parties for weak oversight mechanisms that allowed fraudsters to exploit federal funding streams. Operation Metro Surge, deploying 3,000 DHS agents to Minnesota to target fraud and immigration violations, arrested 4,000 illegal aliens, intensifying federal-state tensions as Ellison blocked ICE cooperation agreements and sued to halt the operation.

The Political and Economic Fallout

Taxpayers absorbed billions in losses while vulnerable populations suffered the true cost of diverted resources. Children who should have received nutritious meals during a pandemic went without. Disabled individuals, Medicaid recipients, and families relying on childcare assistance faced service gaps because funds disappeared into fraudulent operations. The scandal fuels damaging stereotypes about Somali communities in Minnesota, where some fraud schemes originated. Beyond immediate victims, the fraud undermines public confidence in social safety net programs designed to help Americans in crisis. Political ramifications ripple through upcoming elections as Republicans weaponize the scandal against Democratic leadership.

The confrontation between Hawley and Ellison symbolizes broader debates about government accountability, partisan weaponization of oversight powers, and competing narratives about who fights fraud effectively. Ellison’s 300 Medicaid fraud convictions demonstrate prosecutorial activity, yet critics question why the Feeding Our Future operation grew to such proportions before federal intervention. The absence of any filed bribery charges against Ellison leaves Hawley’s jail demand as political rhetoric rather than legal reality. Still, the optics damage Democratic officials heading into congressional testimony. Federal agencies continue investigating independently, with Treasury’s Al-Shabab probe potentially escalating national security dimensions beyond welfare fraud.

Stricter oversight controls on nonprofit federal funding appear inevitable as Congress demands reforms. Medicaid billing and home health services face heightened scrutiny nationwide following Minnesota’s failures. The Department of Human Services nationwide may implement new verification requirements for grants exceeding certain thresholds. Minnesota’s experience serves as a cautionary tale about what happens when oversight mechanisms fail and political priorities override whistleblower warnings. Whether criminal charges materialize against state officials remains uncertain, but the March 4 hearing promises explosive testimony as Walz and Ellison face Republican interrogation under oath about their roles in the largest state welfare fraud crisis in recent American history.