ST. PAUL, MN — Treasury Secretary Scott Bessent announced Monday that his department is launching an investigation into allegations that Minnesota taxpayer funds were improperly diverted to Somalia and potentially reached the terrorist group Al-Shabaab. In a post on X, Bessent said the inquiry was moving quickly “to ensure Americans’ taxes are not funding acts of global terror,” citing support from President Trump.
The allegations stem from a City Journal report claiming fraud in Minnesota’s Medicaid and social-service programs may have enabled money to be routed overseas. The connection to Al-Shabaab — an al-Qaeda-linked organization operating in Somalia — remains unconfirmed, and state officials say no evidence has yet established that taxpayer funds reached the group. Gov. Tim Walz told Fox News Digital he welcomed an investigation if any financial links existed, saying, “If there’s a connection, we should find it.”
Federal prosecutors in Minnesota have previously charged dozens of defendants across several fraud schemes, including housing assistance fraud, pandemic child-nutrition fraud, and false billing for autism therapy programs. Collectively, the government estimates losses in the billions, though none of the charges publicly filed to date allege material support for terrorism.
President Trump has recently escalated criticism of Minnesota’s Somali community, asserting without evidence that residents are “ripping off our country” and sending money abroad. His comments have drawn concern from Minnesota leaders and community groups, who warn that broad accusations could stigmatize innocent residents amid ongoing fraud investigations.
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