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Minnesota Lawmaker Alleges State Tracked Funds Flowing Overseas Before Halting Program

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Minnesota Governor Tim Walz speaks to reporters after he announced that he would not seek reelection, at the Minnesota State Capitol in St. Paul, Minnesota, U.S. January 5, 2026. REUTERS/Tim Evans TPX IMAGES OF THE DAY

(St. paul, Minnesota) – A Minnesota state representative is raising serious concerns about how taxpayer money was handled, claiming officials tracked funds leaving the state and heading overseas before ultimately shutting the program down.

Rep. Krista Knudsen says state agencies were aware of suspicious financial activity tied to ongoing fraud investigations but failed to act immediately. According to her claims, money was traced out of the country before intervention occurred.

The allegations come as Minnesota continues to grapple with multiple fraud-related scandals that have drawn scrutiny from lawmakers and watchdog groups.

State officials have not publicly detailed the full scope of the claims, but the situation is likely to intensify calls for tighter oversight and accountability in how public funds are monitored.

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