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#minnesotawelfarefraud Minnesota Welfare Fraud and Alleged Ties to Terrorism
The Minnesota welfare fraud scandals, primarily involving members of the Somali-American community, have involved schemes totaling over $1 billion in stolen taxpayer funds since around 2019. These include the high-profile Feeding Our Future case (at least $250 million in federal child nutrition funds defrauded during the COVID-19 pandemic, with 78 people charged and 59 convicted as of late 2025), explosive growth in autism services fraud (claims rising from $3 million in 2018 to $399 million in 2023), and the Housing Stabilization Services (HSS) program (costs ballooning from an estimated $2.6 million annually pre-2020 to $104 million in 2023, with U.S. Attorney Joe Thompson stating the "vast majority" was fraudulent). At least 28 such scandals have been uncovered under Gov. Tim Walz's administration, per federal prosecutors.
Alleged Links to Al-Shabaab
There is no confirmed or charged amount of fraud proceeds directly funding Al-Shabaab (a U.S.-designated terrorist group affiliated with al Qaeda). Claims stem from investigative reporting and anonymous law enforcement sources, but federal and state probes (including a 2019 Minnesota Legislative Auditor report) have not substantiated direct ties, and no terrorism financing charges have been filed despite dozens of fraud convictions. Key allegations include:

Indirect Funding via Remittances: Fraudsters allegedly sent millions back to Somalia through informal hawala networks (unregulated money transfer systems). Al-Shabaab is said to tax these transfers, benefiting the group regardless of intent. A retired Seattle Police detective (Glenn Kerns) traced $20 million routed abroad in a single year via hawala, with sources claiming the group takes a cut on "every cent" sent from Minnesota's Somali community. A former Minneapolis Joint Terrorism Task Force (JTTF) official echoed this, calling Minnesota taxpayers "the largest funder of Al-Shabaab" through these channels.
No Specific Figure: Reports describe "millions" overall but provide no precise dollar amount reaching terrorists. Proceeds were often spent on U.S. luxuries (e.g., luxury cars, real estate) rather than overseas transfers, and Somalia's lack of formal banking complicates tracking.

Investigation Status

Federal prosecutors in Minnesota have pursued fraud aggressively but found no ideological motive—defendants were "looking to get rich," per former U.S. Attorney Andy Luger.
On December 1, 2025, U.S. Treasury Secretary Scott Bessent announced a new investigation into potential Al-Shabaab links, citing the scandals and ordering a review of oversight from the Biden and Walz eras. This overlaps with ongoing DOJ work, drawing criticism as duplicative.
Conservative outlets (e.g., City Journal by Christopher Rufo and Ryan G. Thorpe) amplified the claims, prompting political attacks on Walz. Still, outlets like the Minnesota Reformer label them "sloppy" and unsubstantiated.

Many victims of these schemes are Somali immigrants themselves, and experts emphasize root causes like program vulnerabilities during COVID rather than community-wide issues. For updates, monitor the U.S. Attorney's Office for Minnesota or Treasury announcements. If you need details on specific cases, let me know!2.5s