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Minnesota House Approves Bill to Create Statewide Office of Inspector General to Investigate Fraud

The measure would create an independent watchdog over state government and social service fraud, with lawmakers estimating a $12 million annual cost.

  • By a 127-5 vote, the Minnesota House approved legislation Thursday to establish a statewide Office of Inspector General with vast, unprecedented power to investigate taxpayer-funded programs across state agencies.
  • Prompted by reports of "industrial scale" fraud, lawmakers acted following federal estimates that Medicaid program losses could reach $9 billion since 2018, driving urgency for centralized oversight.
  • The legislation includes a compromise: the OIG will cost about $12 million annually, with law enforcement powers delayed until 2028, negotiated by Rep. Matt Norris, DFL-Blaine, and Rep. Patti Anderson, R-Dellwood.
  • Returning to the Minnesota Senate, the bill is expected to pass before reaching Gov. Tim Walz, who has stated he will sign the measure into law.
  • Under the established timeline, the governor will appoint an Inspector General by February or March next year, with the office launching by September 2027 and the appointee serving a five-year term.
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Duluth News TribuneDuluth News Tribune
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Minnesota House passes bill to establish Office of Inspector General

ST. PAUL — After many months of negotiations, the Minnesota House passed the bill to establish a statewide Office of Inspector General, 127-5. The OIG is just one of several measures lawmakers have pitched to combat the fraud that has plagued Minnesota’s social service programs. The bill would create a statewide “watchdog.” Several state agencies, such as the Department of Human Services, have individual inspectors general, but this one would be…

·Cherokee County, United States
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Axios broke the news in Washington, United States on Thursday, May 7, 2026.
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