Governor Tim Walz Issues Executive Order to Combat Fraud in Minnesota Government Programs

Strategic Insights -

Governor Tim Walz of Minnesota has issued an executive order directing state agencies to intensify efforts to prevent, detect, and combat fraud across Minnesota government programs. The order leverages new data sharing laws passed in the 2025 legislative session and builds on significant steps already taken to safeguard public dollars and ensure resources are directed to Minnesotans who need them most. The Governor's administration has also advanced several initiatives to strengthen program integrity and address evolving criminal schemes, including introducing and signing comprehensive anti-fraud legislation, increasing data-sharing across agencies, and creating an Office of Inspector General at the Department of Education.

Key Takeaways:

  • The Governor's executive order directs state agencies to intensify efforts to prevent, detect, and combat fraud across Minnesota government programs.
  • The order leverages new data sharing laws passed in the 2025 legislative session and builds on significant steps already taken to safeguard public dollars.
  • The Walz Administration has introduced and signed into law comprehensive anti-fraud legislation during the 2023-2025 legislative sessions, including expanded authority to stop fraudulent payments.
  • The administration has also increased data-sharing across agencies, created an Office of Inspector General at the Department of Education, and established new anti-kickback provisions.
  • Executive Order 25-10 aims to strengthen oversight at the Department of Human Services (DHS) through proactive, data-driven reviews of Medicaid providers and claims.
  • The order also increases transparency by publishing program integrity actions and outcomes, improves provider accountability by disenrolling inactive Medicaid providers, and conducts an external review of DHS operations.
  • The Governor's administration has installed new leadership at DHS, including Temporary Commissioner Shireen Gandhi and Inspector General James Clark, with an emphasis on fraud prevention and program integrity.

Statistics:

  • In 2025, the legislature codified the Financial Crimes and Fraud Section at the Bureau of Criminal Apprehension (BCA) in law and required mandatory reporting of suspected criminal activity to the BCA.
  • The BCA is now required to report to the legislature on a regular basis.
  • According to the Governor's office, the state of Minnesota will "reinforce interagency coordination by requiring agencies to share data for fraud detection and refer suspected cases to law enforcement and oversight partners."

Sources:

  • Office of the Governor of Minnesota
  • The 2025 Minnesota Legislative Session
  • Minnesota Government News Release
  • Governor Tim Walz's Executive Order 25-10
  • Senator Heather Gustafson (Minnesota Senate)
  • Representative Matt Norris (Minnesota House)