Dear Neighbor,
House Republicans have made cracking down on fraud a major priority this session and there are some developments to report, including passage of a very important bill yesterday. Here is the latest from St. Paul:
Anti-fraud bill passes House
The House on Thursday passed legislation creating an Office of the Inspector General that would operate independently with future law enforcement authority. It is an important step toward providing more transparency and accountability in state government to help get a handle on fraud that has cost state taxpayers $9 billion or more by some estimates.
Many people have been frustrated about a failure of the state government to crack down on fraud that’s overtaken our state. That's why House Republicans have been pressing hard for an independent Office of Inspector General with law enforcement capabilities. We need somebody capable of enforcing laws against fraud at the state level without interference from the governor or bureaucrats who are trying to protect the fraudsters. That’s what this bill provides.
House Democrats blocked OIG legislation last year, and they've been dragging their feet and trying to water it down this year by offering amendments that strip the teeth from this bill.
In the end, they caved and we passed a good bill that makes the OIG responsible for investigating state agencies, grant recipients, and contractors. It provides subpoena power and the authority to freeze or stop distribution of funds under court order.
Upon enactment of this bill, Minnesota would join around 15-20 U.S. states that have a statewide OIG with broad oversight over executive agencies. It is now in the hands of the Senate.
Gandhi demoted
DHS Commissioner Shireen Gandhi was pushed out of her role this week, just one day before she was set to face a Senate confirmation hearing. Gov. Tim Walz’s administration has now pulled this stunt for a second time in less than a year. When one of its own is about to answer tough questions on DHS’s failed handling of fraud, they’re suddenly reassigned. That’s not a coincidence, it’s an obvious attempt to duck accountability and Minnesotans can see right through it.
Shuffling titles doesn’t fix anything. Keeping the same people in place who presided over a surge in fraud only guarantees more of the same. Gandhi previously served as DHS’s Chief Compliance Officer and was later elevated to commissioner despite being part of the department during the very years this fraud was growing.
Gandhi has been with DHS since 2017 and spent roughly the past 15 months leading the state’s largest agency, which employs about 7,000 people and oversees billions in spending each year. As scrutiny over fraud intensified, so did questions about her role in stopping it. Even before becoming commissioner, she held senior compliance and leadership positions This raises serious concerns about oversight during the period when these problems escalated.
We can only hope the next DHS head focuses more on fostering a culture of compliance in state programs instead of the culture of compassion that has been the failed standard under Gov. Walz.
Stay tuned for more as we enter the final full week of the 2026 session and make our way through the May 17 deadline to adjourn.
Sincerely,
Harry