New Updates on Fraud and Lowering Your Taxes

March 23, 2026

OLA Report Finds DHS Mismanagement

Friends and Neighbors,

Good afternoon and happy Monday, 

Welcome to week 6 at the legislature, where a new report from the Office of the Legislative Auditor (OLA) was recently released regarding the Minnesota Department of Human Services' (DHS) handling of fraud within Early Intensive Developmental and Behavioral Intervention (EIDBI) programs. The Walz Administration and Human Services officials have attempted to absolve themselves of blame for the massive increase in billing claims for these autism dollars by falsely claiming that they did not have the legal authority to discontinue payment to the criminal fraudsters. This recent OLA report disproved that assertion and laid bare the nonfeasance by the Walz Administration, which has allowed hundreds of millions of your money to disappear just in this one program. House Republicans will continue to push for passage of much-needed anti-fraud legislation: the independent Office of the Inspector General, and the Fraud Isn't Free Act. Minnesotans deserve to know that their hard-earned taxpayer dollars are being safeguarded by an apolitical entity.

House Repeals Fraud-Riddled Program

Fortunately, this last week we did take a step in the right direction. I am a co-author of legislation which passed with a broad bipartisan vote to repeal Minnesota's Housing Stabilization Services (HSS) program, which federal investigators found to be "riddled with fraud." Similar to the egregious EIDBI program, the HSS program's costs skyrocketed from $2.5 million in 2020 to over $100 million by 2024. Led by the efforts of the Fraud Prevention Committee and Republican action at the state and federal levels, we are making tangible and significant progress to stop fraud in Minnesota. I was glad to see my House DFL counterparts vote alongside us in repealing this program. Now it is up to the Senate and Governor Walz to finish the job.

Governor Walz's Budget Proposal

The Governor released his supplemental budget proposal last week, which will be a major point of conversation throughout the remainder of the 2026 legislative session. Ultimately, the total package was a mixed bag. He did suggest a few areas where I expect the legislature will be able to find agreement, especially as it relates to fraud prevention and modernizing technology infrastructure in the human services arena. 

However, it appears the Governor will never give up on his top priority of raising taxes. His proposal would add sales taxes to services not currently taxed, in addition to a social media tax, which would immediately cause a greater strain on the business community and consumers through higher costs. I'm especially concerned about the impact to small businesses that do business online and often work on small margins. Minnesota has a huge budget surplus. Why should Minnesotans pay even more? 

My Property Tax Rebate Bill

I just introduced HF4487 last week, which is the bill to give Minnesotans a one-time property tax rebate based upon the better-than-projected $3.7 billion budget surplus that came out in February for the 2026-2027 fiscal year. Co-authored by 34 of my House Republican colleagues, the intent of this bill is to offset the huge property tax increases that Minnesotans will face in 2026 and return your property taxes to levels we have not seen since 2020. The property tax hikes we have endured in recent years are in large part driven by unfunded mandates passed during the DFL Trifecta at the state level, which left counties and local municipalities on the hook for the costs. The out-of-control property taxes are a threat to the economic stability of our state, as people living on fixed incomes are being pushed out of their homes and young people are either unable to purchase a home, or financially strapped in a way where they are unable to grow their families. This is truly unsustainable. Minnesotans need a break! 

Thank You To Those Who Visited Me

Local Soil and Water Conservation District Leaders from Benton, Kanabec, and Mille Lacs Counties

Foley Public Schools Facilities Director

School Superintendents from Upsala, Menagha, and Pierz

Local Business & Insurance Leaders from Morrison County 

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2nd Floor Centennial Office Building
658 Cedar Street
Saint Paul, MN 55155
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