Happy New Year!
Dear Friends and Neighbors,
As we step into 2026, I’m feeling hopeful and grateful. This holiday season was truly special—spending time with my family was a wonderful reminder of what the season is all about. There’s something magical about having everyone home, sharing laughs, slowing down, and savoring those simple moments that fill your heart.
 One of our absolute holiday highlights was getting out into the community and cheering on Mankato State University at their hockey game against Switzerland—what an incredible experience! Go Mavs! Moments like that are what make our community feel so alive, and I’m thankful to be part of it.
 The start of a new year always brings a sense of renewal—a chance to pause, reflect, and look ahead with fresh hope. I’m excited for what’s to come in 2026 and grateful for the opportunity to serve this amazing community. I hope your holidays were filled with joy, love, and moments that make you smile, and that the new year brings good health, happiness, and promise for you and your loved ones.
When Oversight Fails: Exposing Minnesota’s Fraud Crisis
This new year brought with it some major revelations here in Minnesota.
Over the past few weeks, many of you may have seen a video circulating online from a young investigative journalist, Nick Shirley. It gained a great deal of attention very quickly—and while I’m glad more people are finally paying attention to these issues, the truth is this story didn’t begin with a viral clip.
For years, investigative journalists and watchdogs have raised concerns about the misuse of taxpayer dollars here in Minnesota. Unfortunately, much of that work went largely unnoticed.
On January 28, 2025, KSTP’s Jay Kolls visited several Minneapolis daycare centers that had received millions of dollars through the Child Care Assistance Program. These were facilities with long histories of safety and licensing violations. Yet when reporters arrived, some of these locations were completely empty—no staff, no children—despite being among the highest recipients of public funding.
Let that sink in.
This wasn’t social media speculation. This was boots-on-the-ground investigative journalism. And it raised serious questions about how taxpayer dollars are being monitored, where oversight has failed, and how long warning signs were ignored.
The fraud documented in these reports predates the infamous Feeding Our Future scandal—the same scandal that stole over $250 million from taxpayers and led to nearly 90 indictments. We were told that it was handled. We were told that reforms would be made. We were assured that something like this would never happen again.
Yet here we are.
In just one year of serving in the legislature, I've witnessed firsthand how fraud and fiscal mismanagement can devastate our communities. That's why I strongly supported the creation of the House Fraud and Government Oversight Committee—a dedicated body to investigate fraud and demand accountability in state government. In every sector of our legislature, the need for strong oversight is clear.
And what’s been uncovered is deeply disturbing.
Despite repeated warnings, fraud was ignored. Questions went unanswered. Concerns were dismissed. And while Minnesota leadership dragged its feet, federal authorities had to step in.
Since Governor Walz and Attorney General Ellison have failed to take action to stop or prosecute widespread fraud, the U.S. Attorney’s Office has been forced to intervene. They were the ones who led the Feeding Our Future prosecutions. And now, once again, they are leading investigations into ongoing fraud across Minnesota.
That should never have been necessary.
Attorney General Ellison’s office is technically responsible for prosecuting Medicaid fraud. Yet his office has not led these investigations. In fact, federal prosecutors have moved forward without their involvement—that speaks volumes. Even under the Biden administration, federal authorities apparently had little confidence in state leadership to handle this responsibly.
Last week, the situation escalated even further.
The U.S. Treasury, FBI, Department of Education, HUD, Small Business Administration, and Centers for Medicare and Medicaid Services all announced active investigations into fraud tied to Minnesota programs. Federal officials have already forced the Walz Administration to pause or cut off certain funding streams, and outside auditors are now being brought in to review multiple state programs.
That is unprecedented.
And it’s happening because Minnesota leadership failed to act.
Perhaps the most disturbing of all are the accounts from state employees who tried to speak up. Nearly 400 whistleblowers have come forward, saying they were ignored or even retaliated against for raising concerns. Many of them are now preparing to testify publicly. When they do, Minnesotans will finally see just how deep this problem goes—and how long it was allowed to continue.
I know these stories can be unsettling—no one wants to hear that programs meant to help families, children, and communities have been mismanaged. But I also believe in the power of accountability and action. By shining a light on these issues, holding those responsible to account, and working together on real solutions, we can make sure Minnesota’s programs serve the people they were created to help.
Connecting with the Next Generation
 I recently had the chance to spend time with the juniors and seniors at Nicollet Public School, talking about how state government works, the role civic engagement plays, and why their voices truly matter. It was inspiring to see their curiosity, energy, and thoughtful questions.
Even more exciting, I got to join them on a tour of the State Capitol. Seeing students explore the halls where decisions that impact all Minnesotans are made reminded me why I love this work—and why it’s so important to stay connected to our communities.
Meeting with Local Leaders
 I also had the pleasure of meeting with my local BPOU to talk about the upcoming legislative session and provide a community update. It’s always valuable to connect with local leaders, hear their perspectives, and discuss the issues that matter most to our neighbors.
A heartfelt thank you to the Blue Earth County Republicans for your continued support, your time, and your commitment to our community. Conversations like these remind me how fortunate I am to serve in such a dedicated and engaged district.
Looking Ahead with Hope
While the recent headlines about fraud in Minnesota can be disheartening, it’s important to remain hopeful. Now that these issues are being amplified on a national level, Minnesota leadership cannot ignore them—our communities deserve accountability, transparency, and real action.
As we move through the first month of this new year, I’m looking forward to the opportunities and blessings ahead. With the start of the legislative session approaching in February, I encourage you to stay engaged and share your thoughts with me. Your voice matters, and I welcome you to reach out anytime via phone or email at rep.erica.schwartz@house.mn.gov.
Together, we can ensure our government works the way it’s supposed to—for all of Minnesota.
Sincerely,
Representative Erica Schwartz
Minnesota House of Representatives, District 18A
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