The U.S. Treasury Secretary Scott Bessent has opened a formal investigation into allegations that Minnesota taxpayers' money may have been diverted to the Somali terrorist group Al-Shabaab through alleged fraud schemes.
Treasury Secretary Orders Probe Into Minnesota Taxpayer Funds
On Monday, Bessent shared a post on X, citing reporting by Christopher F. Rufo that claims "America's Somali fraud rings…have stolen billions in taxpayer funds—and sent some to Islamist terrorists back home."
Bessent wrote, "At my direction, @USTreasury 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."
Reports Claim Minnesota Fraud Rings Are Channeling Billions To Al-Shabaab
Rufo's report specifically claimed that Minnesota taxpayers were the "largest funder of Al-Shabaab," citing fraud rings connected to Somali-American communities in the state.
Bessent added, "Thanks to the leadership of @POTUS @realDonaldTrump, we are acting fast to ensure Americans' taxes are not funding acts of global terror. We will share our findings as our investigation continues."
GOP Escalates Attacks On Walz Over Fraud Allegations
On Monday, the White House criticized Gov. Tim Walz (D-Minn.), accusing him of overseeing a $1 billion fraud scheme and echoing President Donald Trump's claim that the state has become a hub for money-laundering activity tied to Somali refugee communities.
The administration noted that 78 of the 86 defendants in the ongoing federal case are of Somali ancestry.
White House press secretary Karoline Leavitt repeated those accusations on X, arguing that Walz's leadership failures cost taxpayers $1 billion.
Rep. Tom Emmer (R-Minn.) accused Walz of allowing $1 billion in taxpayer money to be stolen and praised President Trump for taking steps to address the alleged fraud.
Walz said last week that he welcomes a federal investigation into the claims, reported CBS News.
His statement followed letters from both Minnesota's Republican congressional delegation and GOP state legislators urging U.S. Attorney Daniel Rosen to launch a formal review.
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