GOP launches WALZ act targeting fraudsters

Federal and state lawmakers responded to a significant fraud scandal in Minnesota with new legislative and executive actions. Central to this is the federal Welfare Abuse and Laundering Zillions (WALZ) Act, introduced on December 23, 2025, by U.S. Representative Mariannette Miller-Meeks.

The bill is designed to mandate that the Department of Health and Human Services (HHS) Office of Inspector General investigate any government program that experiences a payment surge of 10% or more within a six-month period. Named as a critique of Governor Tim Walz's administration, the act seeks to implement mandatory federal safeguards following allegations that Minnesota's health and nutrition programs were defrauded of up to $9 billion. Simultaneously, Governor Walz has implemented state-level measures to address oversight failures.

In late 2025, he established a new Director of Program Integrity role, appointing former Bureau of Criminal Apprehension (BCA) leader Tim O'Malley to oversee fraud prevention across state agencies. This followed Executive Order 25-10, signed in September 2025, which created a Statewide Inspector General Coordinating Council and directed agencies to utilize advanced data-sharing and AI tools to detect irregular billing patterns. Walz has acknowledged accountability for the fraud occurring "on his watch" but disputes the $9 billion federal estimate as sensationalized, stating that current confirmed cases are closer to hundreds of millions of dollars.

These 2025 actions build upon previous legislation, such as the 2023 Protect Reproductive Options (PRO) Act, which established abortion access as a fundamental right in Minnesota. However, the current political focus remains on the anti-fraud legislative package, which codified a specialized Financial Crimes and Fraud Section within the BCA and granted state agencies expanded authority to immediately halt payments to suspected bad actors.

You can track the federal bill's progress on Congress.gov or view state updates through the Minnesota Governor's newsroom