by WorldTribune, October 18, 2026 — Real World News By and For Humans

Minnesota is in deep stuff once again.

This time, a U.S. Department of Labor Office of Inspector General (OIG) audit has questioned over $210 million in federal grants after the Minnesota Department of Employment and Economic Development (DEED) failed to provide requested participant-level data.

The audit covered 48 active workforce development grants totaling about $253 million awarded between October 2023 and April 2026 to retrain out-of-work adults and help former inmates find jobs.

DEED withheld or failed to produce participant-level documentation for 26 grants totaling $210,898,737.12 after four months of repeated federal requests.

In a memo, Labor Inspector General Anthony D’Esposito labeled Minnesota’s refusal “deliberate obstruction,” questioned the $210 million as unsupported costs, and recommended flagging the state agency for noncompliance. The OIG has indicated it may pursue subpoenas to obtain the records.

State officials cited privacy protections for approximately 30,000 residents and claimed the federal inquiries were “too intrusive.”

Kyle Reyes, owner of Law Enforcement Today, Blue Lives Matter and The Police Tribune, noted in a post to LinkedIn:

“The same agency operates in a state that has faced multiple large-scale fraud investigations, including the Feeding Our Future case involving more than $250 million in child nutrition funds. Federal grant rules require participant-level documentation so that eligibility, services, and outcomes can be checked. The absence of those records leaves the expenditures unconfirmed.”

Without data, the IG’s office was unable to record whether “participants existed and were eligible for the programs,” “participants received the training and services reported,” “reported wages were accurate,” and “subrecipients properly documented program activity,” among other information.

The memo concluded: “Because we were unable to complete testing, the full extent of unsupported activity remains unknown. As such, there is a significant risk that inaccurate reporting, unsupported activity, or improper use of ETA funds could go undetected.”

D’Esposito added: “By withholding critical participant data, Minnesota is actively undermining vital workforce programs and risking depriving eligible people of the services they need. The DOL OIG will not tolerate this noncompliance. We are committed to protecting every taxpayer dollar and will take whatever steps are necessary to stop potential misuse of these funds. Minnesota’s defiance ends now.”

Minnesota Democrat Gov. Tim Walz abruptly abandoned his re-election bid earlier this year amid the heightened scrutiny of federal dollars being sent to his state, citing his need to focus on “defending the people of Minnesota against the criminals who prey on our generosity” and not his own “political interests.”

250 Years of Freedom Is At Risk

  Minnesota stiffs U.S. Dept. of Labor on data for $210 million in federal grants, WorldTribune.com