Minnesota’s Walz Faces Terror Funding Probe

Shocking allegations over $1 billion in Minnesota welfare funds stolen during the Biden-Walz years & funneled to Al-Shabaab, a designated terrorist organization with ties to al-Qaeda.

Story Highlights

  • Treasury Secretary orders investigation into $1+ billion Minnesota welfare fraud potentially funding Al-Shabaab terrorists
  • Nearly 60 people convicted or charged in massive fraud schemes under Biden and Walz administrations
  • Governor Walz welcomes probe while claiming federal actions are politically motivated attacks
  • Investigation exposes years of lax oversight that may have enabled taxpayer dollars to reach overseas terrorists

Federal Investigation Targets Terrorist Financing Allegations

Treasury Secretary Scott Bessent announced December 2, 2025, that federal authorities would investigate allegations connecting Minnesota’s massive welfare fraud schemes to Al-Shabaab financing. The investigation stems from a City Journal report citing law enforcement sources who claimed stolen taxpayer funds flowed through fraudulent entities to the Somalia-based terrorist organization. This represents the first federal probe explicitly examining potential terrorist financing connections to Minnesota’s documented welfare fraud epidemic.

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Walz Administration Faces Scrutiny Over Billion-Dollar Fraud Crisis

Minnesota has witnessed unprecedented welfare fraud under Governor Walz’s leadership, with federal prosecutors documenting schemes totaling over $1 billion across multiple programs. The most notorious case involved Feeding Our Future, where criminals allegedly stole $250 million in federal nutrition aid by falsely claiming meal distribution during COVID-19. Additional schemes targeted autism therapy programs and housing assistance, with one case alone involving $14 million in stolen funds through fraudulent autism centers.

Political Tensions Escalate Over Investigation Scope

Governor Walz responded defensively to the federal investigation, stating he welcomes accountability while characterizing the probe as politically motivated demonization. Minnesota Republican Senators Jordan Rasmussen and Paul Utke supported the investigation, emphasizing that no other state has experienced such brazen fraud schemes stealing billions in public funds. The investigation occurs alongside Transportation Secretary Sean Duffy’s separate criticism of Minnesota’s Commercial Driver’s License practices, suggesting coordinated federal scrutiny of the Walz administration’s oversight failures.

National Security Implications Demand Accountability

The potential connection between domestic welfare fraud and international terrorism financing represents a serious national security vulnerability that demands thorough investigation. Minnesota’s 2019 Legislative Auditor report was “unable to substantiate” similar allegations but acknowledged it was “possible” that state funds could reach terrorist organizations overseas. This investigation will determine whether the Biden and Walz administrations’ lax oversight enabled American taxpayer dollars to fund enemies of the United States, undermining both fiscal responsibility and national security.

The investigation’s findings will prove critical in establishing whether Minnesota’s fraud crisis extended beyond personal enrichment to actual terrorist financing, with implications for federal-state welfare program oversight and immigration policy moving forward under the Trump administration.

Sources:

Gov. Walz welcomes federal probe, fraud allegations – FOX 9
Trump administration to investigate Minnesota for claims of fraud pipeline to terrorists – Star Tribune
Treasury investigating Minnesota Somalia Al-Shabaab, Bessent says – CBS News
Treasury investigating tax fraud allegations in Minnesota, Bessent says – MPR News