A series of multimillion-dollar alleged fraud schemes in Minnesota has attracted national attention and provoked sharp political attacks. President Trump and allies have blamed Minnesota’s Somali community and Governor Tim Walz; Republicans in Congress have opened investigations. Federal prosecutors continue to file charges in multiple cases, and the U.S. Treasury said it will probe whether state public-assistance dollars reached al Shabaab, the Somalia-based terrorist group.
Feeding Our Future
Three years ago federal prosecutors brought the first charges in what they called the largest pandemic-related fraud in the U.S.: an alleged $250 million scheme centred on a nonprofit, Feeding Our Future, which partnered with the Minnesota Department of Education and the U.S. Department of Agriculture to distribute meals to children. Authorities say the group and affiliated distribution sites submitted fake meal counts and invoices during COVID-19, collected millions in administrative fees and paid or received kickbacks. Charging documents and trials have involved upward of 75 defendants. Founder Aimee Bock was convicted at trial earlier this year. Several other defendants have pleaded guilty or been convicted, receiving multiyear sentences and restitution orders. One defendant pleaded guilty to attempting to bribe a juror after $120,000 in cash was found at a juror’s home.
State and federal reviews found vulnerabilities in the Federal Child Nutrition Program after pandemic-era waivers and relaxed oversight. A 2024 review by Minnesota’s Office of the Legislative Auditor found the Department of Education failed to act on warning signs and created opportunities for fraud.
Other alleged schemes
Separate fraud allegations prompted the state to shut down a new Housing Stabilization Services program for seniors and people with disabilities after finding large-scale fraud. Federal prosecutors later charged eight people, accusing providers of enrolling in the Medicaid-run program and submitting fake or inflated bills; spending on the program reportedly rose to more than $100 million in a year despite initial cost estimates of about $2.6 million annually. In September, prosecutors charged a defendant in an autism-services fraud case who allegedly hired unqualified staff, submitted false claims, and paid parents kickbacks—sometimes as much as $1,500—to enroll children. That same defendant was also charged in connection with a Feeding Our Future distribution site.
Officials characterize the cases as part of a broader pattern. Acting U.S. Attorney Joseph H. Thompson said the schemes “form a web that has stolen billions of dollars in taxpayer money.”
Connection to Minnesota’s Somali community
Many charged in the Feeding Our Future and related cases are of Somali descent, though the alleged mastermind of the Feeding Our Future scheme is White. Minnesota’s Somali American community is among the largest in the nation—about 76,000 people live in the state, a majority born in the U.S. Employment and citizenship statistics show much of the community is established and employed at rates roughly comparable to the state overall. Somali leaders and some observers say a small number of defendants do not reflect the wider community; others note that trust networks and economic pressures can create opportunities for fraud and recruitment within close communities.
Allegations of funds reaching al Shabaab
Treasury Secretary Scott Bessent announced a probe into whether Minnesota public-assistance dollars ultimately reached al Shabaab after a City Journal report claimed millions may have “landed in the hands” of the terror group. A 2019 state audit said investigators were “unable to substantiate” that Child Care Assistance Program funds went to terrorist groups, though it noted it was possible some funds sent overseas could eventually reach bad actors. Multiple federal investigators have told news outlets they have found no evidence taxpayer dollars were funneled to al Shabaab; former U.S. Attorney Andy Lugar said defendants “were looking to get rich, not fund overseas terrorism.”
Political fallout and responses
President Trump has repeatedly blamed Somali immigrants for the fraud, using inflammatory language and announcing an end to temporary deportation protections for Somali immigrants in Minnesota, alleging—without publicly cited evidence—that Somali gangs and “fraudulent money laundering activity” have harmed the state. He has also targeted Rep. Ilhan Omar and Gov. Walz in public comments. Immigration and Customs Enforcement operations in the Twin Cities and travel/immigration restrictions affecting Somalia have drawn criticism from Minnesota lawmakers and community members.
Governor Tim Walz, who has led the state since 2019, says Minnesota is cracking down on fraud and welcomes federal assistance. He describes Minnesota as generous and prosperous but acknowledges criminals exploit that. Walz and his administration have faced criticism—particularly from Republicans—that state officials were slow to act or failed to perform due diligence in programs later found to be fraudulent. Walz’s office and supporters say payments were not cut off early at the FBI’s request during ongoing investigations and court proceedings.
Congressional oversight
House Oversight Committee Chair Rep. James Comer opened an investigation into fraud in Minnesota’s social-services system, requesting documents from Gov. Walz and alleging the state allowed millions to be stolen and may have failed to act to avoid political fallout.
Context
Prosecutors and watchdogs say pandemic-era emergency programs and waivers created opportunities for large-scale fraud nationwide; one former federal watchdog estimated COVID-related fraud may have cost taxpayers up to roughly $1 trillion. In Minnesota, program design choices, relaxed rules during the pandemic, and weak recordkeeping in some state programs have been cited as contributing factors that allowed alleged schemes to grow before investigators intervened.