Trump Administration Probes Minnesota Fraud Scheme as Gov. Walz Faces Scrutiny

WASHINGTON — The Trump administration has ordered a federal investigation into widespread fraud in Minnesota’s welfare and assistance programs following claims — still unproven — that stolen public funds may have been routed to the terror group al-Shabab.

Treasury Secretary Scott Bessent announced the decision Monday, saying federal agencies were being directed to move quickly to ensure taxpayer money “isn’t ending up in the hands of terrorists.” He also criticized both former President Joe Biden’s administration and Minnesota Gov. Tim Walz for what he described as years of lax oversight.

At my direction, @USTreasury is investigating allegations that under the feckless mismanagement of the Biden Administration and Governor Tim Walz, hardworking Minnesotans’ tax dollars may have been diverted to the terrorist organization Al-Shabaab.

Thanks to the leadership of… https://t.co/uillMknuXL

— Treasury Secretary Scott Bessent (@SecScottBessent) December 1, 2025

The allegations center on a recent article suggesting fraudulent operators — including sham autism clinics and entities tied to the Feeding Our Future scandal — may have funneled money abroad. Federal authorities, however, have not confirmed any link between Minnesota fraud cases and terror financing.

What is undisputed is the scale of the fraud. Over the past several years, federal prosecutors have uncovered over $1 billion in theft across multiple state-run programs, leading to nearly 60 convictions and charges. The cases range from pandemic-era food distribution scams to Medicaid billing schemes. Members of the Twin Cities’ Somali-American community were involved in some of the cases, though prosecutors emphasize the wrongdoing spans multiple groups and organizations.

Gov. Tim Walz, responding to questions last week, said he supports a federal review but noted he is unsure investigators will find evidence connecting stolen funds to terrorism.

Minnesota’s Republican congressional delegation has also pressed for answers, urging U.S. Attorney Daniel Rosen to examine whether any money was diverted overseas. House Majority Whip Tom Emmer said he expects the investigation to “get to the bottom of it.”

The issue is already becoming a political flashpoint, with the White House issuing a statement Monday blaming Walz’s administration for failing to stop a “major scandal” as scrutiny intensifies heading into the 2026 election season.