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Governor Walz’s Position and State Response
Governor Walz and his administration have acknowledged the scrutiny and taken steps that they say are aimed at addressing fraud and strengthening safeguards.
In recent months, Walz announced pauses on certain Medicaid payments and initiated third‑party audits of high‑risk programs to identify irregular billing and suspicious activity.

Walz’s office disputes the most dramatic fraud estimates, characterizing some public figures as “sensationalized” and urging that only validated evidence be used to guide policy responses.
State officials have called for cooperation with federal investigators and reaffirmed that any proven fraudsters should face prosecution under the law.
In a broader statement, the governor’s team has also highlighted record state support for local governments — including increased aid for public safety, infrastructure, and property tax relief — as evidence of their commitment to partnering with cities and towns.
Despite these assurances, the core issue remains unresolved for many mayors: confidence in oversight and accountability mechanisms has been eroded, and until that trust is restored through visible reform, communities may continue to feel financially and politically squeezed.
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