Elon Musk has criticised Minnesota Governor Tim Walz as the state faces multiple investigations into alleged fraud affecting its social services programmes.
In a post on X on Tuesday, the SpaceX and Tesla chief executive referred to the governor as "Traitor Tim Walz". His remark came amid growing scrutiny of Minnesota's handling of several alleged fraud schemes and followed comments by President Donald Trump, who has described the state as a "hub of fraudulent money laundering activity". Musk was responding to another social media post that joked about a caller telling personal finance adviser Dave Ramsey, during his radio programme, about Walz's record as governor. The post accused Walz of raising taxes, spending billions of dollars from a state budget surplus, and presiding over programmes now under investigation for fraud, including Medicaid and federally funded initiatives providing food to children.
Federal authorities and lawmakers are investigating Minnesota's "Feeding Our Future" scheme, a case involving an estimated $250m in alleged fraud linked to a children's nutrition programme funded by the US Department of Agriculture and administered by the state during the Covid-19 pandemic. At least 77 people have been charged in connection with the case, which prosecutors say exploited the USDA's decision to waive certain requirements under the Federal Child Nutrition Program.
Another investigation centres on the state's Housing Stability Services Program, which provides Medicaid-funded housing support for people with disabilities, mental health conditions and substance-use disorders. The US Department of Justice has so far charged fewer than a dozen people in relation to alleged fraud in that programme, though officials have said more charges are expected.
Many of those charged in the cases are members of Minnesota's Somali community. In November, President Trump announced he was ending Temporary Protected Status for Somali migrants in Minnesota, which provides protection from deportation.
On Tuesday, the Department of Homeland Security said it was leading a major operation to identify and remove those involved in the alleged fraud. "Our investigative agents are conducting a massive operation to identify, arrest, and remove criminals who are defrauding the American people. We will root out this rampant fraud plaguing Minnesota," the department said in a post on X.
Minnesota state officials have pushed back against claims that fraud was ignored. This follows widespread attention to a viral video posted by YouTuber Nick Shirley, which focused on alleged fraud at childcare and learning centres in the state.
In response, a spokesperson for Governor Walz said he had worked for years to "crack down" on fraud and had "strengthened oversight" of state programmes.
The commissioner of the Minnesota Department of Children, Youth and Families, Tikki Brown, said on Monday that earlier inspections of the centres had not uncovered fraud, but that regulators were now carrying out more unannounced visits.
"We are aware of a video that's being circulated that has gained local and national attention about childcare centres in Minnesota," she said. "While we have questions about some of the methods that were used in the video, we do take the concerns that the video raises about fraud very seriously."
