Walz's Taxpayer-Funded "Sue and Settlement" Scheme Benefits Transgender Prison Inmate and Progressive Group

Minnesota Gov. Tim Walz, the Democratic vice presidential candidate, faces scrutiny for using nearly $500,000 in taxpayer funds in a "sue and settlement" scheme involving a transgender prison inmate and a left-wing interest group.

Minnesota Gov. Tim Walz, the Democratic vice presidential candidate, has come under fire for approving the use of nearly $500,000 in taxpayer money in an apparent "sue and settlement" scheme involving a transgender prison inmate and a progressive legal nonprofit.

According to a new watchdog report from the taxpayer group OpenTheBooks.com, Walz's administration allocated nearly $200,000 to Gender Justice, a progressive legal organization dedicated to "gender equity," one year after the group filed a sex discrimination complaint against the Minnesota Department of Corrections (DOC).

Walz's Taxpayer-Funded

Walz's Taxpayer-Funded "Sue and Settlement" Scheme Benefits Transgender Prison Inmate and Progressive Group

The complaint alleged that the DOC had discriminated against a biological male inmate known as Christina Lusk by refusing to place her in a women's prison and denying her request for sex-change surgeries.

Prior to her arrest in December 2018 for possession of methamphetamine and sentencing to a five-year term, Lusk had undergone hormone therapy and sought "bottom surgery" to remove her male genitalia.

Walz's Taxpayer-Funded

Walz's Taxpayer-Funded "Sue and Settlement" Scheme Benefits Transgender Prison Inmate and Progressive Group

As part of the settlement, Lusk received $245,903.72, Gender Justice was allocated $198,000, and the law firm Robins Kaplan LLP received $51,096.28 for legal fees.

However, the settlement also included an update in policy that avoided the legislative process, with Minnesota's DOC agreeing to adopt World Professional Association for Transgender Health (WPATH) Standards of Care for treating inmates with gender dysphoria on the taxpayer dime.

Walz's Taxpayer-Funded

Walz's Taxpayer-Funded "Sue and Settlement" Scheme Benefits Transgender Prison Inmate and Progressive Group

Robins Kaplan LLP, the law firm involved in the case, had previously contributed over $22,000 to Walz's gubernatorial campaign.

OpenTheBooks spokesperson Christopher Neefus told Fox News Digital that "by following the money, taxpayers are able to get a much better look at the settlement and the consequences."

Walz's Taxpayer-Funded

Walz's Taxpayer-Funded "Sue and Settlement" Scheme Benefits Transgender Prison Inmate and Progressive Group

"Taxpayers are used to footing the bill, of course, but this deal also meant Minnesota would change its policies when it comes to transgender inmates," Neefus said. "That sidestepped the public input that comes with a legislative debate."

Transgender policies have been a point of contention between those who believe parents should have more control over their children's education and those who think LGBT students should be allowed to decide what to tell or not to tell their parents.

The issue of taxpayer-funded transgender procedures and accommodations behind prison walls has become increasingly prevalent in liberal-run states and cities.

Earlier this year, Colorado became the first state in the country with segregated holding cells for transgender women in prison.

After a class-action lawsuit filed by several transgender inmates in 2019 against the Colorado Department of Corrections (CDOC) alleging discrimination, harassment, and assault, a judge signed off on a consent decree that would bring further changes, including surgical sex changes and hormone treatment, to the state's penitentiary.

Several of the plaintiffs who sought judicial approval of the consent decree are serving life without parole for homicide and assault, according to court documents obtained by Fox News Digital.

In June, health officials in the Biden administration urged WPATH to omit the age limit in its guidelines for transgender surgical procedures for adolescents, and succeeded, according to unsealed court documents.