FIRST ON FOX: Sen. Josh Hawley, R-Mo., is introducing legislation to create a special inspector general to investigate federal program fraud across the country after revelations about rampant abuse in Minnesota, Fox News Digital has learned.
The legislation would allow the inspector general to conduct audits and investigations as well as general oversight over federally funded child assistance programs throughout the U.S. The official would also submit quarterly reports to Congress and refer any criminal activity to the Justice Department.
"After billions of dollars have been lost to fraud in Minnesota, American taxpayers deserve transparency and accountability to ensure their hard-earned tax dollars are not lining the pockets of bad actors," Hawley told Fox News Digital in a statement.
Hawley says the official will operate as a "federal watchdog" to "track every penny" of taxpayer funding that goes to child assistance programs.
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The legislation comes as a battle rages in Minnesota over alleged fraud in the Somali immigrant community and subsequent immigration enforcement operations.
Investigators speculate the fraud could exceed $1 billion and rise as high as $9 billion.
The fraud has resulted in dozens of indictments and convictions, and it forced Minnesota Gov. Tim Walz to abandon his ambitions of seeking a third term.
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Treasury Secretary Scott Bessent announced cash payments for fraud whistleblowers in Minnesota last week.
"We know that these rats will turn on each other," Bessent told Fox News.
"We are going to offer whistleblower payments to anyone who wants to tell us the who, what, when, where and how this fraud has been done. I think that that will give us a great leap forward on how to get it done," he added.
The Trump administration has already frozen multiple federal funding streams to Minnesota, including from the Departments of Agriculture and Health and Human Services.
Minnesota Republicans have argued that state leaders ignored warning signs for years, while some Democrats, including Walz, have tried to dismiss federal actions as political attacks and downplayed fraud estimates.
READ THE FULL BILL TEXT – APP USERS, CLICK HERE:
Fox News' Taylor Penley contributed to this report.
