Feds Probe Alleged Embezzlement of Minnesota Welfare Funds to Somali Terrorist Group

Key Takeaways

• The Trump administration is investigating allegations that Minnesota tax money may have been diverted to al Shabaab, a U.S.-designated foreign terrorist organization.
• The allegations suggest that millions of dollars from Minnesota state welfare programs may have ultimately landed in the hands of the terror group.
• The investigation comes amid large-scale fraud allegations in Minnesota’s public assistance programs, including a $250 million scheme involving the nonprofit group Feeding Our Future.
• Many of the defendants in the alleged fraud schemes are members of Minnesota’s large Somali community, but community members are also frequently victims of the schemes.
• President Trump has repeatedly made claims about Somali immigrants in Minnesota, including allegations of fraudulent money laundering activity, but these claims have been met with defense from Minnesota Democrats.

Introduction to the Investigation
The Trump administration has launched an investigation into allegations that Minnesota tax money may have been diverted to al Shabaab, a U.S.-designated foreign terrorist organization and al Qaeda affiliate based in Somalia. Treasury Secretary Scott Bessent announced the investigation on Monday, stating that the Treasury 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." The investigation is based on a report from the conservative publication City Journal, which alleged that millions of dollars from Minnesota state welfare programs had "ultimately landed in the hands of the terror group Al-Shabaab," citing law enforcement sources.

Allegations of Fraud in Minnesota
Minnesota has been plagued by allegations of large-scale fraud in the state’s public assistance programs. Dozens of people have been charged in a $250 million scheme involving the nonprofit group Feeding Our Future and its partners, which federal prosecutors say stole federal nutrition aid by falsely claiming to help distribute meals during the COVID-19 pandemic. Officials have also brought fraud charges involving housing aid and autism programs in the state. Many of the defendants in these alleged fraud schemes are members of Minnesota’s large Somali community, but a Somali American former investigator in the Minnesota attorney general’s office noted that community members are also frequently victims of the schemes.

Response from Minnesota Officials
Governor Tim Walz’s office has welcomed the investigation into the allegations, with the governor stating that he would work with investigators to determine where defrauded welfare money went. Walz has also defended the state’s Somali community, telling reporters that "do not paint an entire group of people with that same brush, demonizing them, putting them at risk, when there is no proof of that." Other Minnesota Democrats have also come to the defense of the Somali community, pushing back against claims made by President Trump that the state has become a "hub of fraudulent money laundering activity" and that Somali immigrants are "ripping off our country and ripping apart that once great state."

Claims of Terrorist Funding
Claims that state money could be flowing to al Shabaab and other terror groups have circulated for years in Minnesota. A 2019 report by the state’s Office of the Legislative Auditor said it was "unable to substantiate" allegations that Child Care Assistance Program funding is going to terrorist groups, though the organization didn’t rule it out, saying it’s "possible" that state funds may have been sent overseas and eventually found its way to terrorists. However, Andy Lugar, a Biden- and Obama-era U.S. attorney for Minnesota, has stated that those charged in the Feeding Our Future fraud scheme "were looking to get rich, not fund overseas terrorism." The investigation into the allegations will aim to determine whether there is any truth to the claims that Minnesota tax money has been diverted to al Shabaab.

Conclusion
The investigation into the allegations that Minnesota tax money may have been diverted to al Shabaab is a serious matter that requires careful consideration and attention. While the allegations are disturbing, it is essential to approach the investigation with a critical and nuanced perspective, recognizing that the vast majority of the Somali community in Minnesota are law-abiding citizens who are also victims of the alleged fraud schemes. The investigation should focus on uncovering the truth and holding those responsible accountable, rather than making sweeping claims or generalizations about an entire community. As the investigation unfolds, it is crucial to prioritize fact-based reporting and avoid perpetuating harmful stereotypes or biases that can exacerbate tensions and undermine trust in the community.