Federal Officials Investigate Possible Ties Between Minnesota Welfare Fraud and Somali Terror Group
Federal investigators are focusing on allegations that a portion of Minnesota’s taxpayer-funded welfare programs may have been diverted to support the Somali terrorist organization Al-Shabaab. U.S. Treasury Secretary Scott Bessent announced the probe this week, a significant development in a broader state and federal investigation into pandemic-era fraud schemes that have already seen numerous convictions.
The investigation primarily revolves around funds intended for essential services like child nutrition and Medicaid, which may have been unlawfully redirected through fraudulent billing operations. Bessent pointedly stated that there are indications the siphoned money could end up overseas, specifically in Somalia, where Al-Shabaab conducts its operations. “Thanks to the leadership of @POTUS and @realDonaldTrump, we are acting fast to ensure Americans’ taxes are not funding acts of global terror,” Bessent wrote on social media. He emphasized, “Hardworking Minnesotans’ tax dollars may have been diverted to the terrorist organization Al-Shabaab.”
This announcement follows prior reporting by City Journal and was fueled by a viral tweet highlighting Bessent’s investigation into how taxpayer funds might be linked to terrorism. The central issue arises from the Feeding Our Future nonprofit, which partnered with state agencies during the COVID-19 pandemic to provide free meals to children. Federal prosecutors allege that this organization and its network exploited lax oversight procedures, resulting in nearly $1 billion in stolen U.S. taxpayer funds from 2020 to 2022.
To date, a total of 59 individuals have been convicted related to this case, with charges against 78 defendants. The fraud relied on fake invoices for meals that were never served and the misuse of shell companies to launder the stolen assets. These funds have reportedly been used to acquire properties in various countries, including Turkey and Kenya.
Now, evidence suggests some of these diverted funds may have been used to support Al-Shabaab, raising the stakes from mere financial misconduct to a pressing national security issue. Former President Donald Trump stated, “Minnesota is a hub of fraudulent money laundering activity,” pointing to the serious implications of these allegations. He remarked on the extent of the fraud, saying, “Somalians have caused a lot of trouble; they’re ripping us off for a lot of money… There’s a tremendous amount of money going back to Somalia.”
The investigation places Governor Tim Walz at the center of mounting scrutiny. Critics harshly judge his administration’s failure to identify and stop the fraud despite repeated warnings. Whistleblowers from the Minnesota Department of Human Services have claimed that the Walz administration ignored key indicators of illegal activity and retaliated against employees who raised concerns. “Minnesota Governor Tim Walz was warned about massive fraud in a pandemic food-aid program for children,” said House Oversight and Accountability Committee Chair James Comer. He criticized Walz’s inaction during a time when “criminals—including Somali terrorists—stole nearly $1 billion from the program while children suffered.”
Governor Walz defends his office’s actions, claiming compliance with federal guidelines, and insists that state attempts to halt payments were thwarted by lawsuits from Feeding Our Future, which accused the state of racial discrimination. However, a ruling from a Minnesota district judge challenged this defense, stating that continued payments by the state were voluntary. In Walz’s own words, “My God, there’s a big difference between fraud and corruption,” directing a thinly veiled insult at Trump’s record while maintaining openness to an investigation regarding potential connections to Al-Shabaab.
A June 2024 audit by the Minnesota Office of the Legislative Auditor criticized the Feeding Our Future program for “inadequate oversight” and noted “missed red flags” that enabled the large-scale fraud to occur. This audit identified several critical moments when state officials could have intervened but failed to act decisively. The fraud not only wasted taxpayer money but also had severe implications, with funds meant for feeding children during pandemic school closures instead being diverted for luxury purchases and real estate. Some of this money, investigators now suspect, may have been used to fund terrorism abroad.
Bessent has made it clear that taxpayer dollars should not support either local fraud or international terror: “We can’t allow taxpayer money to support child fraud here or jihad abroad.” The investigation is still in its early stages, but it has ignited a fresh discussion about federal oversight, immigration policies, and the integrity of nonprofits managing public assistance.
House Republicans have initiated their inquiries, aiming to gather documents and determine what Walz knew regarding the fraud. They are particularly focused on allegations of inadequate cooperation from the Department of Education and the Department of Human Services. Meanwhile, reports of whistleblower intimidation have surfaced, with one anonymous individual describing the atmosphere as “scary and isolating” for those who attempted to speak out against the fraud.
The Feeding Our Future scandal stands as one of the largest COVID relief fraud cases to be prosecuted, and its possible links to foreign terrorism have thrust it into a critical conversation on the national stage. Investigators from the Treasury Department aim to trace funds through various channels, examining everything from wire transfers to shell companies and real estate transactions associated with Somalia or Al-Shabaab.
Regardless of whether the funds ultimately supported terrorism, this case underscores severe systemic failures in how pandemic relief was administered. Emergency aid was provided at unprecedented levels, yet oversight mechanisms faltered under the strain. In Minnesota, the warning signs were alarmingly ignored, leading to devastating consequences for the community.
The public discourse surrounding Governor Walz, and the ramifications of this ongoing investigation suggest that the political landscape in Minnesota may be undergoing a transformation. As the investigation unfolds, the full scope of the failures will be scrutinized, leaving attention focused squarely on those in leadership positions during this crisis. The tweet that raised awareness of the inquiry succinctly captured this critical moment: “This is getting REALLY bad for Tim!” With federal scrutiny ramping up and congressional committees also involved, it is clear that the consequences for leadership in Minnesota are just beginning.
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