Demuth demands firings as Klobuchar pledges audit in MN fraud fight

Key points

• Lisa Demuth called for the firing of Assistant Education Commissioner Daron Korte and Deputy Commissioner Leah Montgomery, citing their failure to address fraud warnings.
• A Star Tribune investigation alleged that the Walz administration ignored red flags regarding billions in potential fraud across multiple Medicaid-funded programs.
• Amy Klobuchar pledged to launch a top-to-bottom state audit and replace outdated technology on her first day in office.
• The governor's office countered that it has already installed new leadership and accused Demuth of blocking a statewide OIG bill in 2025.
• Former U.S. Attorney Andy Luger endorsed Klobuchar's fraud plan, citing his experience prosecuting the Feeding Our Future scheme.

Background

This dispute follows the August 2026 primaries, where Demuth and Klobuchar secured their respective party nominations. Prior coverage noted Klobuchar faced criticism for not explicitly mentioning the Feeding Our Future scandal in previous press releases, a point Demuth has repeatedly raised during the campaign.

How outlets are covering it

Demuth and KTTC emphasized the need for immediate personnel changes, arguing that the administration ignored clear warning signs for years. The Center of the American Experiment highlighted the Star Tribune's findings that the administration's leadership style contributed to a failure to grasp the political and financial significance of the fraud. In contrast, the governor's office and Klobuchar's campaign focused on forward-looking solutions, such as audits and technology upgrades, rather than immediate firings, while noting that new leadership had already been appointed.

Why it matters

The outcome of the November gubernatorial election will determine whether Minnesota adopts a punitive approach to fraud oversight or focuses on systemic reforms and audits. The scale of the alleged financial loss, estimated in the billions, makes this a central issue for state budget and public trust.

What to watch

Klobuchar and Demuth will continue to debate fraud response strategies in the lead-up to the November general election. The state may see further scrutiny of Medicaid spending as federal trials related to the Feeding Our Future scheme conclude.