[ST. PAUL, MN] – Governor Tim Walz today issued an executive order directing state agencies to intensify efforts to prevent, detect, and combat fraud across Minnesota government programs. The order leverages new data sharing laws passed in the 2025 legislative session and builds on significant steps already taken to safeguard public dollars and ensure resources are directed to Minnesotans who need them most.

“We have no tolerance for fraud in the State of Minnesota,” said Governor Walz. “Abuse of taxpayer dollars takes resources away from the people who need them most. If you commit fraud in Minnesota, you will be prosecuted and held accountable to the fullest extent of the law. While we will continue to urge the legislature to take further action, this executive order gives our agencies additional tools to safeguard taxpayer dollars.”

The Walz Administration has advanced numerous proposals and initiatives to strengthen program integrity and address evolving criminal schemes:

• Introduced and signed into law comprehensive anti-fraud legislation during the 2023–2025 legislative sessions, including expanded authority to stop fraudulent payments.
• Increased data-sharing across agencies.
• Created an Office of Inspector General at the Department of Education.
• Established new anti-kickback provisions.
• Established the Financial Crimes and Fraud Section at the Bureau of Criminal Apprehension through Executive Order 25-01, creating a centralized investigative unit led by law enforcement. In 2025, the legislature codified this unit in law and required mandatory reporting of suspected criminal activity to the BCA, as well as regular reporting from the BCA to the legislature.
• Assist the Minnesota Attorney General’s Office, the U.S. Attorney’s Office, and other law enforcement agencies to bring fraudsters to justice.
• Installed new leadership at the Department of Human Services (DHS), including Temporary Commissioner Shireen Gandhi and Inspector General James Clark, with an emphasis on fraud prevention and program integrity.

Executive Order 25-10 leverages new data sharing laws passed as part of the Governor’s 2025 anti-fraud legislative package and directs DHS and other state agencies to expand their efforts with additional fraud prevention tools, including:

• Strengthening oversight at DHS through proactive, data-driven reviews of Medicaid providers and claims, temporary licensing moratoria where risks are identified, and discontinuing programs highly vulnerable to fraud.
• Increasing transparency by publishing program integrity actions and outcomes.
• Improving provider accountability by disenrolling inactive Medicaid providers and requiring prepayment review for high-risk providers.
• Conducting an external review of DHS operations to recommend structural changes that prioritize fraud prevention, accountability, and efficient service delivery.
• Establishing a Statewide Inspector General Coordinating Council led by the BCA to unify agency inspectors general, enhance data sharing, coordinate investigations.
• Enhancing technology and analytics with MNIT support to modernize systems and strengthen fraud detection tools.
• Reinforcing interagency coordination by requiring agencies to share data for fraud detection and refer suspected cases to law enforcement and oversight partners.

Legislators in both the Minnesota House and Senate applauded the Governor’s actions to create the Statewide Inspector General Coordinating Council:

“The Governor’s immediate action to bring agencies together is the right short-term step,” said Senator Heather Gustafson “It also lays the foundation for a permanent, independent statewide Office of Inspector General to catch fraud early and protect public dollars.”

“Minnesotans are a generous people, but they also expect public dollars to go to help those who need it.” said Representative Matt Norris “The OIG Coordinating Council is an important step toward that goal by coordinating efforts to fight fraud across state agencies.”

Executive Order 25-10 takes effect fifteen days after publication in the State Register and filing with the Secretary of State.