If you thought you heard it all on the fraud in Minnesota, you would be wrong.
It's like the never-ending story.
Minnesota Gov. Tim Walz decided he was quitting his bid for reelection on Monday.
READ MORE: It's Official – Tim Walz Won't Seek Reelection As His Political Career Goes Down in Flames
Now there's news about a scathing audit report that was released on Monday, which found even more fraud.
A major state audit in Minnesota conducted by the nonpartisan Office of the Legislative Auditor found widespread failures and internal control problems in the Department of Human Services’ Behavioral Health Administration (BHA) grant program, reaffirming concerns about massive fraud issues.
The report, released on Monday, found that between July 1, 2022, and Dec. 31, 2024, DHS dished out more than $425 million in grants to 830 organizations, the majority being nongovernmental, and did not show proper oversight in watching over those taxpayer funds, which in many cases were meant to help those with addiction and mental health issues.
The audit found missing progress reports and discovered BHA could not show it had completed all required monitoring visits and had no documentation at all for some of them.
BREAKING: New audit reveals that MN Dept of Health (DHS) employees have been fabricating documents to cover for their mismanagement of taxpayer-funded grants issued to health providers.
— Libs of TikTok (@libsoftiktok) January 7, 2026
One example shows a DHS employee issuing a $675,000 grant to a company without gathering any… pic.twitter.com/Te7hFNRu01
They found that one employee gave a $672,648 grant to a company for a month of work without any information on what they did. Then the employee who paid it left the DHS and went to work providing consulting services for the company, according to the report.
But that wasn't all. It gets worse.
Additionally, auditors discovered what appeared to be backdated or newly created documentation that did not exist before the audit, suggesting an effort to retroactively manufacture paperwork to show compliance.
This was wild.
The legislative auditor, Judy Randall, called it a "systemic effort" and said that she hadn't seen anything like this in her "nearly three decades with the Office of the Legislative Auditor."
“We have never been able to prove it, to document it, and we did in this case,” she said.
Republican Speaker Lisa Demuth called the report "shocking" and said it showed a "culture of pervasive fraud, negligence, and deception."
"We need answers immediately about the apparent backdating and potential falsification of documents found during the audit,” House Speaker Lisa Demuth, R-Cold Spring, said. “This proves once again that those running our programs expect no repercussions or accountability from Governor Walz or the Democrats in power, even when they fabricate documents and ignore basic procedures. It’s time to clean house and restore honesty and accountability in state agencies.”
So perhaps it's not surprising that Walz is giving up his reelection bid and heading for the door at the end of his term.
READ MORE: Nick Shirley Takes a Victory Lap As Tim Walz Bows Out of Race - and the Irony Abounds
DOJ Surges Additional U.S. Attorneys to Minnesota As They Wade Through Deluge of Fraud
It just keeps getting worse and worse.
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