by WorldTribune Staff, December 2, 2025 Real World News
The Treasury Department and the House Oversight Committee have launched investigations into Minnesota Democrat Gov. Tim Walz’s alleged involvement in a “massive fraud” scheme that involved Somali immigrants embezzling more than $1 billion from taxpayers.
Included in the investigations are allegations that Minnesota tax dollars were diverted to the terrorist organization Al-Shabaab during the Biden-Harris Administration and under Walz.

Treasury Secretary Scott Bessent said the agency is moving quickly “to ensure Americans’ taxes are not funding acts of global terror,” and said the agency would release findings as the investigation continues.
House Oversight Committee Chairman James Comer told the New York Post that his panel “will conduct a thorough investigation into Governor Walz’s failure to safeguard taxpayer dollars.”
Walz, who was the Democrat Party’s vice presidential candidate in the 2024 election, “was warned about massive fraud in a pandemic food-aid program for children, yet he failed to act. Instead, whistleblowers who raised concerns faced retaliation,” Comer said. “Because of Governor Walz’s negligence, criminals — including Somali terrorists — stole nearly $1 billion from the program while children suffered.”
A whistleblower X account purporting to be 500 employees with Minnesota’s Department of Human Services slammed Walz on Saturday for being “100% responsible” for the fraud.
“We let Tim Walz know of fraud early on, hoping for a partnership in stopping fraud but no, we got the opposite response,” the post said. “Tim Walz systematically retaliated against whistleblowers using monitoring, threats, repression, and did his best to discredit fraud reports. Instead of partnership, we got the full weight of retaliation. It’s scary, isolating and left us wondering who we can turn to.”
President Donald Trump, in a Thanksgiving post on Truth Social, highlighted Minnesota, which has received a heavy influx of Somali refugees, describing Somali gangs as “roving the streets looking for ‘prey’ as our wonderful people stay locked in their apartments and houses hoping against hope that they will be left alone.”
“The seriously retarded Governor of Minnesota, Tim Walz, does nothing, either through fear, incompetence, or both,” Trump wrote.
On NBC’s Meet the Press with Kristen Welker, Walz criticized the president’s language, calling the term “damaging” and accusing Trump of “normalizing hateful behavior” and trying to “distract from his incompetency.”
“We cannot allow this to be normalized,” Walz said. “You can use that language, but you shouldn’t.”
The investigation were launched following a report published last month by Ryan Thorpe and Christopher Rufo of the Manhattan Institute which examined fraud schemes tied to Minnesota’s Medicaid Housing Stabilization Services program, Feeding Our Future, and additional organizations.
Thorpe and Rufo documented how the schemes operated and reported that individuals within Minnesota’s Somali community were responsible for significant portions of the fraud and that federal counterterrorism sources confirmed that millions of dollars in stolen funds had been transferred to Somalia.
One source told Thorpe and Rufo: “The largest funder of Al-Shabaab is the Minnesota taxpayer.”
Former Seattle Police Department detective Glenn Kerns, who spent 14 years on a federal Joint Terrorism Task Force, described how the networks operated.
Kerns told Thorpe and Rufo that Somali participants used commercial flights from Seattle to move cash into hawala systems in Somalia. He said investigators pulled financial records and discovered that many of the individuals sending money were receiving federal benefits.
“We had sources going into the hawalas to send money. I went down to [Minnesota] and pulled all of their records and, well s—, all these Somalis sending out money are on DHS benefits,” Kerns told the authors.
The House Oversight investigation follows the prosecutions of 78 scammers, often from Somalia, who took Minnesota taxpayers’ money as part of what the feds have called the Feeding Our Future fraud scandal.
The ploy, according to prosecutors, involved funneling money from state social services coffers — including at the Department of Human Services and Department of Education — to the nonprofit Feeding Our Future and other organizations to ostensibly feed school children.
Instead, the “depraved and brazen” plot used the funds to splurge on the lavish lifestyles of the nonprofit’s workers — including brand new fancy cars and real estate holdings as far away as Turkey and Kenya — between April 2020 and January 2022, prosecutors said.