Senate Republicans have introduced a sweeping anti-fraud package, naming its centerpiece the "Welfare Abuse and Laundering Zillions (WALZ) Act" after Minnesota Governor Tim Walz. The legislation, led by Sen. Roger Marshall (R-Kan.), aims to combat welfare fraud, COVID-era funding abuse, and foreign remittance violations, with projections of saving taxpayers $240 billion.
The WALZ Act requires federal reimbursements to states only after services are proven to be provided—a process critics argue Minnesota failed to enforce. It also mandates investigations by the HHS inspector general if a state program sees a 10% increase in disbursements over six months.
Sen. Joni Ernst (R-Iowa) is advancing the legislation as journalists testify about the "Feeding Our Futures" scandal in Minnesota, which allegedly involved widespread fraud. Meanwhile, Gov. Walz faced criticism for not attending a key fraud hearing despite being in the Capitol for other business.
Ernst’s package includes the Returning Unspent COVID Funds Act, which seeks to claw back $65 billion in unspent COVID-era funds to prevent future abuse. She emphasized the need to address fraud amid economic struggles, stating that fraudsters are "ripping off $1.4 billion of taxpayer money every single day."
The legislation has sparked debate over federal oversight of state welfare programs and the effectiveness of existing fraud prevention measures.