Minnesota Faces Scrutiny Over $9 Billion Fraud Scheme Under Governor Walz
ST. PAUL, Minn. — Minnesota is grappling with revelations that an estimated $9 billion in taxpayer dollars were stolen through extensive fraud schemes during Governor Tim Walz’s administration. The magnitude of the fraud has prompted calls for accountability from state and federal lawmakers, as investigations uncover that millions of dollars were funneled overseas, including to Somalia and reportedly to the Al-Shabaab terrorist organization.
Representative Tom Emmer has been vocal in condemning the fraud, highlighting the systemic vulnerabilities that allowed such widespread abuse of state-run welfare programs. According to investigations by the U.S. Department of the Treasury, the fraud involved a network of predominantly Somali individuals who exploited programs designed to assist vulnerable populations, including children and low-income families.
Among the most egregious cases is the Feeding Our Future nonprofit, which defrauded federal funds intended to provide food to hungry children during the COVID-19 pandemic. This scheme alone accounted for $250 million in stolen funds, making it the largest COVID-19 fraud case in the country. Seventy-eight individuals have been charged so far, with approximately 90% of them from the Somali community. One Minneapolis grocery store owner was charged with misappropriating $1 million in federal nutrition assistance to cover personal expenses.
The Minnesota Department of Human Services also terminated the Housing Stability Services Program after uncovering rampant fraud. Initially projected to cost $2.6 million annually, the program paid out nearly $100 million in claims by 2024—almost ten times the original estimate. Eight people have been indicted in connection with this scheme.
Perhaps most alarming is the fraudulent autism services racket uncovered in the Somali community. A Somali woman pleaded guilty to stealing $14 million by creating fake autism centers that recruited children regardless of actual diagnosis. This led to an unprecedented spike in autism claims to Medicaid, soaring from $3 million in 2018 to nearly $400 million in 2023. Approximately 85 autism clinics are currently under investigation. The exploitation was so widespread that one in sixteen Somali four-year-olds in Minnesota was reportedly diagnosed with autism, a rate more than triple the state average.
Additionally, a daycare center that received $4 million in taxpayer funds was found to have numerous violations, including 95 citations from the state human services agency between 2019 and 2023. The center’s questionable operations have drawn scrutiny from both state officials and citizen journalists.
Federal and state authorities are expanding investigations, with some officials pledging to examine whether similar fraud patterns exist in other states. The Federal Bureau of Investigation and the Department of Justice continue to pursue charges against those involved in these schemes.
As Minnesota confronts this crisis, lawmakers emphasize the urgent need for reforms to safeguard taxpayer dollars and prevent future exploitation. The scale of the fraud under Governor Walz’s administration has shaken public confidence and raised critical questions about oversight and accountability in state welfare programs.
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