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Sen. Amy Klobuchar, D-Minn., on Sunday unveiled a sweeping plan to overhaul the Minnesota state government, pledging a “top-to-bottom audit” of state agencies to root out fraud, waste and abuse as she campaigns for governor — while drawing a clear contrast with Democratic Gov. Tim Walz, whose administration has been mired in controversy over fraud scandals in state-run programs.
“On day one, I will begin a top-to-bottom audit of our state government,” Klobuchar said at a news conference in St. Paul on Sunday. “That audit will look at state agencies to identify waste, fraud and abuse.”
Klobuchar said her proposal is aimed at transforming state government into one that is “innovative, effective and accountable,” as fraud and oversight failures have emerged as a central issue in Minnesota politics.
Her plan includes a series of anti-fraud measures, including the creation of a “Do Not Pay” database to block individuals or contractors convicted of fraud from receiving public funds, expanded oversight of state grants and contracts, and new authority to freeze suspicious payments before money is distributed. It also calls for tougher criminal penalties for organized fraud schemes and more frequent in-person inspections and audits of programs receiving state dollars.
KLOBUCHAR LAUNCHES MINNESOTA GOVERNOR BID AFTER WALZ ENDS RE-ELECTION RUN AMID MASSIVE FRAUD SCANDAL
Sen. Amy Klobuchar, D-Minn., unveiled her plan to address fraud in her state as she runs for governor. (Bloomberg/Getty)
Fraud in Minnesota’s state-run programs has drawn increasing scrutiny in recent years, including federal investigations and FBI raids targeting more than 20 childcare centers as part of a sweeping probe into alleged misuse of taxpayer funds. The issue has become a central political flash point, with Republicans arguing that oversight failures allowed large-scale fraud to persist under the Walz administration.
FBI and law enforcement agents raid Mini Childcare (formerly Mako Childcare) in south Minneapolis on April 28, 2026. Mini Childcare was one of 22 sites targeted as part of a fraud probe in Minnesota. (Anthony Souffle/The Minnesota Star Tribune via Getty Images)
Klobuchar also sought to distance herself from the current administration’s record, signaling she would take a different approach to oversight and accountability if elected.
“I don’t like the status quo. I wouldn’t be running for governor if I wanted to have things remain the same. I want to see change,” she said.
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Minnesota House Speaker Lisa Demuth, a Republican gubernatorial candidate, blasted Klobuchar’s proposal, arguing it amounted to a continuation of Democratic leadership in the state.
“Plain and simple: four terms of Democrat control of the executive branch have doubled our state budget, raised taxes by billions and enabled a culture of fraud that has stolen billions more,” Demuth said in a statement posted online. “Amy Klobuchar wants to triple down on the Walz Era.”
Minnesota Gov. Tim Walz testifies during a House Oversight and Government Reform Committee hearing at the U.S. Capitol in Washington, D.C., on March 4, 2026. The hearing examined alleged misuse of federal funds for Minnesota social services and Medicaid programs. (Anna Moneymaker/Getty Images)
Demuth added that she is running “to fix the mess Tim Walz has left in his wake and return our state to common sense that’s been missing for far too long.”
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Klobuchar, who has spent decades in Washington, is positioning herself as an outsider to the controversies that have dogged the Walz administration, while arguing her plan would bring stronger accountability and more efficient use of taxpayer dollars.
Fox News Digital’s Robert McGreevy contributed to this report.