The Department of Health and Human Services (HHS) has launched a review into how Minnesota used billions of dollars in federal social service funding, requesting detailed records from Gov. Tim Walz’s administration and other state entities after reports raised questions about whether portions of the money were misused, according to letters first obtained by the New York Post.

The letters were sent Monday by Alex Adams, assistant secretary for the Administration for Children and Families, to Walz, Minneapolis Mayor Jacob Frey and a nonprofit involved in administering Head Start programs, the Post reported.

According to the Post, Adams said HHS is attempting to determine whether federal safety-net funds were diverted or mismanaged and whether such misuse might have “been used to fuel illegal and mass migration” into Minnesota.

Adams told the outlet the review is focused on “accountability for American taxpayers” and on ensuring federal benefit programs were not compromised.

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The Post reported that Minnesota received more than $8.6 billion in ACF funding between fiscal years 2019 and 2025 through more than 1,000 federal grants. In fiscal year 2025 alone, the state received over $690 million for safety-net programs under President Biden, according to federal spending records reviewed by the Post.

In the letters, Adams requested what the Post described as a “comprehensive list” of all state entities that received ACF funding during that period, along with detailed administrative data. The information sought includes recipient names, addresses, dates of birth and, where applicable, Social Security numbers and immigration A-numbers, the Post reported.

Adams told the Post that HHS has “legitimate reason to think that they’ve been using taxpayer dollars incorrectly,” citing recent fraud investigations and allegations involving Minnesota’s Department of Human Services. According to the Post, the letters referenced public statements from hundreds of DHS employees alleging warnings of fraud were disregarded and whistleblowers faced retaliation.

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The review comes amid heightened scrutiny of Minnesota’s handling of federal funds following multiple high-profile fraud cases. Federal prosecutors have charged dozens of individuals in connection with the Feeding Our Future scheme, in which more than $250 million intended for child nutrition programs was diverted for luxury purchases and real estate. Many of those charged had ties to nonprofits serving Minnesota’s Somali community.

The Post also cited Pew Research Center data showing Minnesota’s unauthorized migrant population increased by roughly 40,000 people between 2019 and 2023, reaching an estimated 130,000 residents, or about 2% of the state’s population.

According to the Post, the ACF review includes several major federal programs, including the Community Services Block Grant, Social Services Block Grant, Low-Income Home Energy Assistance Program, Title IV-E Foster Care, Refugee Cash and Medical Assistance, the Child Care and Development Fund, and Parents in Community Action, a Head Start grantee.

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“The Trump Administration has made clear its commitment to rooting out fraud, protecting taxpayer dollars, and ensuring program integrity across all federal benefit programs,” Adams wrote in the letters, according to the Post. “This information is necessary for ACF to conduct a thorough review of program operations and to assess the extent of any irregularities that may have occurred.”

Fox News Digital reached out to Gov. Walz, Mayor Jacob Frey and HHS for comment but did not receive an immediate response.

A coalition of Eaton fire survivors and community groups called on Southern California Edison on Tuesday to provide immediate housing assistance to the thousands of people who lost their homes in the Jan. 7 wildfire.

The coalition says an increasing number of Altadena residents are running out of insurance coverage that had been paying for their housing since they were displaced by the fire. Thousands of other residents had no insurance.

“When a company’s fire destroys or contaminates homes, that company has a responsibility to keep families housed until they can get back home,” said Joy Chen, executive director of the Eaton Fire Survivors Network, one of the coalition members asking Edison for emergency assistance of up to $200,000 for each family.

At the coalition’s press conference, Altadena residents spoke of trying to find a place to live after the Jan. 7 fire that killed 19 people and destroyed more than 9,000 homes, apartments and other structures. Thousands of other homes were damaged by smoke and ash.

Gabriel Gonzalez said he had been living in his car for most of the last year.

Before the fire, Gonzalez had a successful plumbing company with six employees, he said. He had moved into an apartment in Altadena just a month before the fire and lost $80,000 worth of tools when the building was destroyed.

His insurance did not cover the loss, Gonzalez said, and he lost his business.

Edison is now offering to directly pay fire victims for their losses if they give up their right to file a lawsuit against the utility.

But members of the coalition say Edison’s program is forcing victims who are most desperate for financial support to give up their legal right to fair compensation.

Andrew Wessels, Strategy Director for the Eaton Fire Survivors Network, speaks about Edison’s Wildfire Recovery Compensation Plan (WRCP).

(Gary Coronado/For The Times)

“If families are pushed to give up what they are owed just to survive, the recovery will never have the funds required to rebuild homes, restore livelihoods or stabilize the community,” said Andrew Wessels. He said he and his family had lived in 12 different places since the fire left ash contaminated with lead on and in their home.

In an interview Tuesday, Pedro Pizarro, chief executive of Edison International, the utility’s parent company, said the company would not provide money to victims without them agreeing to drop any litigation against the company for the fire.

“I can’t even pretend to understand the challenges victims are going through,” Pizarro said.

He said the company created its Wildfire Recovery Compensation Program to get money to victims much faster than if they filed a lawsuit and waited for a settlement.

“We want to help the community rebuild as quickly as possible,” he said.

Pizarro said Edison made its first payment to a victim within 45 days of the compensation program launching on Oct. 29. So far, he said, the company has received more than 1,500 claims.

Edison created the compensation program even though the official investigation into the cause of the fire hasn’t been released.

The company has said a leading theory is that its century-old transmission line in Eaton Canyon, which it last used in 1971, briefly became energized from the live lines running parallel to it, sparking the fire.

The program offers to reimburse victims for their losses and provides additional sums for pain and suffering. It also gives victims a bonus for agreeing to settle their claim outside of court.

Pizarro said the program is voluntary and if victims don’t like the offer they receive from Edison, they can continue their claims in court.

Edison has told its investors that it believes it will be reimbursed for all of its payments to victims and lawsuit settlements by $1 billion in customer-paid insurance and a $21 billion state wildfire fund.

Zaire Calvin, of Altadena, a survivor who has lost his home and other properties, speaks.

(Gary Coronado/For The Times)

Gov. Gavin Newsom and lawmakers created the wildfire fund in 2019 to protect utilities from bankruptcy if their electric wires cause a disastrous wildfire.

State officials say the fund could be wiped out by Eaton fire damages. While the first $21 billion was contributed half by customers of the state’s three biggest for-profit utilities and half by the companies’ shareholders, any additional damage claims from the Jan. 7 fire will be paid by Edison customers, according to legislation passed in September.

Some Altadena residents say Edison’s compensation program doesn’t pay them fully for their losses.

Damon Blount said that he and his wife had just renovated their home before it was destroyed in the fire. They don’t believe Edison’s offer would be enough to cover that work.

Blount said he “felt betrayed” by the utility.

“They literally took everything away from us,” Blount said. “Do the right thing, Edison. We want to be home.”

At the press conference, fire victims pointed out that Edison reported nearly $1.3 billion in profits last year, up from $1.2 billion in 2023.

Last week, Edison International said it was increasing the dividend it pays to its shareholders by 6% because of its strong financial performance.

“Their stock is rising,” said Zaire Calvin, one of the Altadena residents calling on Edison for emergency relief. Calvin lost his home and his sister died in the fire. “They will not pay a penny when this is over.”