Former congressman and Fox News host Trey Gowdy argued Wednesday that Minnesota Governor Tim Walz has avoided a potentially career-ending political firestorm solely because the funds at the center of a massive fraud scandal originated in Washington, D.C., rather than the pockets of Minnesota taxpayers.
Speaking on “Special Report with Bret Baier,” Gowdy suggested that the sprawling nature of the federal government provides a convenient veil for misconduct that would otherwise be immediately visible—and punishable—at the state level.
“I think the issue that Republicans don’t talk about enough is [that] this is what you get when you have [a] massive federal government,” Gowdy told Baier. “The bigger something is, Bret, the more places it has to hide.”
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The discussion centers on exploding allegations regarding fraud within Minnesota’s state-administered programs, specifically those tied to Somali-run operations in the Minneapolis–St. Paul area. Gowdy contended that if the money lost had been collected directly from Minnesota residents, the political consequences for the governor would be far more severe.
“If this were Minnesota tax dollars we were talking about, Tim Walz would be running for his life,” Gowdy said. “But it’s not. It’s money from Florida and Texas and South Carolina.”
‘Empty Rooms’ and Billion-Dollar Tags
Gowdy’s comments come amid a week of intensifying scrutiny on Minnesota’s handling of public funds. On Friday, Minnesota-based YouTuber Nick Shirley released a 43-minute video purporting to show the interior of several state-funded daycare centers run by Somali operators.
In the footage, Shirley visits multiple facilities during business hours, repeatedly documenting empty rooms in centers that were allegedly claiming significant attendance numbers. One facility highlighted in the video reportedly received $4 million in taxpayer funding despite appearing to have no children present at the time of the visit.
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Local media have also raised red flags. KSTP reported that one facility, the Quality “Learing” Center, had accumulated 95 violations from state agencies between 2019 and 2023, raising questions about oversight and enforcement.
Federal Fallout and State Defense
The scope of the alleged mismanagement was underscored by Assistant U.S. Attorney Joe Thompson, who stated on Dec. 18 that suspected fraud within Minnesota’s Medicaid program has now topped $9 billion.
The scandal has also sparked internal conflict, with several state employees alleging that the Walz administration retaliated against whistleblowers who attempted to flag the suspicious activity as federal prosecutors began building cases.
Governor Walz has pushed back against the criticism, acknowledging that state programs can “attract criminals” but urging the public to avoid demonizing the Somali community based on the actions of bad actors.
However, the federal government has already begun to pull the brakes. On Tuesday, the Department of Health and Human Services (HHS) officially froze childcare payments to Minnesota, signaling that Washington is no longer willing to let the money flow without answers.
For Gowdy, the situation is a grim case study in federal bloat.
“We’ve just accepted this level of fraud that most Americans don’t accept at all,” Gowdy said. “The metaphor here is the smaller the federal government is, the less places you have to hide.”
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