US House wants Gov. Tate Reeves to release legal payments made in Miss. Welfare Scandal
A group of U.S. Congressmen are requesting that Gov. Tate Reeves turn over documents detailing payments made to lawyers with welfare money in the largest welfare scandal in Mississippi history.
In a letter sent on April 25, Missouri Congressman and U.S. House Ways and Means Chairman Jason Smith requested to review Temporary Assistance for Needy Families funds paid to Jones Walker LLP to represent the Mississippi Department of Human Services in its case to reclaim misspent TANF funds.
That case is related to a report by State Auditor Shad White showing that tens of millions of dollars were funneled through MDHS to several interested parties to spend those funds on special projects, luxury vehicles and even for a volleyball stadium at the University of Southern Mississippi.
Defendants include former MDHS Director John Davis, long-time state political player Nancy New and her company, the Mississippi Community Education Center and former NFL star Brett Favre.
What are congressmen asking for?
Specifically, Smith is asking Reeves to send his committee any agreements or budgets pursuant to MDHS v. MCEC that would result in the spending of any TANF funds, any approvals for the use of TANF funds to pursue the case or any related litigation and any legal invoices submitted for payment using TANF funds, including copies of payments received through the end of Fiscal Year 2022.
Smith wrote that his committee also had specific concerns over those funds being paid to a private law firm while the state is seeking to claw back millions of dollars. However, according to federal law, states can use some TANF funds on litigation that is related to that money.
Why did Miss. AG decline to represent MDHS?
When the case was filed in 2023, it would have normally been given over to the state attorney general to prosecute. AG Lynn Fitch declined to represent MDHS in the suit and recommended MDHS leadership work with attorneys from Jones Walker, state auditor Shad White told the Clarion Ledger.
According to state law, it is also the attorney general's job to weigh the cost for her office to prosecute a case or to farm it out to another firm.
Fitch's staff declined to comment on the letter or why Fitch chose not to represent MDHS, but only after requesting a copy of the letter and several emails were sent seeking answers.
"I'm sorry, but we do not comment on matters in active litigation," Fitch's Chief of Staff Michelle Williams said.
Earlier this year, Fitch also backed out of a civil case representing White when Favre filed a defamation suit against him for posts on social media. That move, according to Fitch, was prompted by White writing a book detailing the welfare scandal, in which Fitch is mentioned.
Details on Shad White lawsuit: Mississippi AG Lynn Fitch sues Auditor Shad White related to Brett Favre, welfare scandal
When White later sued Favre to reclaim more than $700,000 in welfare money he allegedly had, Fitch sued White claiming he had no right to reclaim the money on the state's behalf.
White, who was the only public official to respond to questions related to the letter, said he is also looking into the funds spent on Jones Walker.
“We have been looking into the questions posed by the House Ways and Means Committee ourselves for the last couple of weeks," White said. "I think it’s a shame that the Attorney General’s office wouldn’t just represent the state in the lawsuit to get the welfare money back. That’s what forced DHS to hire expensive outside lawyers. The AG’s office has time to sue me to stop me from getting the welfare money back but apparently has no time to sue the people who got the welfare money.”
In his letter, Smith details his committee's efforts to work with the United States Department of Human Services, which oversees TANF spending, to ensure accountability from states receiving funds. The committee has also held several hearings to discuss misspent TANF funds and the U.S. Government Accountability Department to conduct a formal investigation into TANF spending.
Adding guardrails to TANF dollars
With the results of several hearings and its own fact-finding mission through various federal offices, U.S. House Ways and Means released several bills that if passed seek to further monitor and regulate national TANF spending.
"These reforms would put in place guardrails to ensure TANF dollars are intentionally focused on removing barriers to work, reducing dependency, and protecting hard-earned tax dollars from waste, fraud and abuse," Smith wrote.
Reeves, whose office did not respond to several messages seeking comment on the letter, has until May 16 to comply with Smith's request.
Several people within Smith's office and the U.S. House Ways and Means Office did not respond to several requests for comment by press time.
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Grant McLaughlin covers state government for the Clarion Ledger. He can be reached at gmclaughlin@gannett.com or 972-571-2335.
This article originally appeared on Mississippi Clarion Ledger: MS welfare fraud: Congressmen ask Mississippi governor for receipts
