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Fixing Government Through Incentives

Friday, March 6, 2026

Murphy Banner 2025
March 6, 2026

Fixing Government Through Incentives

Friends and neighbors,

Our state continues to make headlines for the wrong reasons. This week, the federal government has decided to temporarily halt $259 million in Medicaid funding to Minnesota as a reaction to the sheer magnitude of fraud that has been allowed to fester here under the Walz Administration. This announcement hurts to hear, as it carries real consequences for vulnerable Minnesotans. However, it is hard to blame the federal government for its position. They simply do not trust that this money will get to the people who actually need it. And unfortunately, after witnessing Democrats in St. Paul repeatedly attempt to skirt accountability and block measures to combat future fraud, I find that I agree. Until we clean house within our executive branch and state agencies, Minnesota does not deserve more federal tax money.

Fraud Numbers

The numbers are staggering. After a measure was put in place to prevent fraud in the autism services sector, only 6 out of 500 autism centers in operation have applied for a provisional license in order to continue their services. Following increased scrutiny last year regarding non-emergency medical transport services, we have witnessed a precipitous 62% drop in ride frequency. To those who actually need them, these services are essential. Yet, the statistics above suggest that the vast majority of these "service providers" never helped a single Minnesotan in need. It is good news that, due to Republican action, the fraudsters are now running scared, but it is also difficult to believe that the Walz Administration was simply unaware of what was taking place so out in the open. 

Adding insult to injury, to date, not a single state employee has been fired for mismanaging public funds. 

What can be done?

The nature of government agencies is to expand, and you would be hard-pressed to find an employee of a state agency who wants less funding for their particular cause. It is our job as citizens, and my priority representing your interests at the State Legislature, to push forward measures that will ensure accountability.

This is why House Republicans have introduced the Fraud Isn't Free Act (HF3395) to hold state agencies accountable to the people for the responsible administration of our tax dollars. 

The act will:

  • Reduce agency budgets by 10% and the commissioner's salary by 25% for any agency that fails to meet fraud prevention expectations
  • Require Minnesota Management and Budget (MMB) to report these reductions to the leaders of related legislative committees
  • Require MMB to address fraud in state budget forecasts

At the end of the day, people respond to incentives. If there are zero repercussions for irresponsible—or corrupt—performance, then this type of mismanagement is bound to continue. We must put in place the right incentives in order to achieve the type of responsibility that Minnesota taxpayers deserve.

Meeting With Future Farmers of America

This week, I had the pleasure of meeting with some impressive young adults from the Future Farmers of America. Coming from a farming background, I was encouraged to hear about the fantastic agricultural training that these students are receiving through FFA, as well as their plans for the future. I will continue to advocate at the State Legislature on behalf of programs such as FFA, so that we can ensure that our farming industry in western Minnesota continues to flourish and leaders like the ones that I met this week can achieve long and prosperous careers.

Murphy FFA Meeting

It is my honor to work on your behalf at the State Legislature to safeguard our tax dollars and direct our hard-earned money towards infrastructure and programs that improve our Greater Minnesota communities.

 

Tom Murphy

MN State Representative District 9B

Proudly Serving Otter Tail and Douglas Counties

 

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