Treasury Secretary Scott Bessent has launched a federal investigation into explosive allegations that Minnesota tax dollars were funneled to the Somalia-based terrorist organization Al-Shabaab under the Biden administration and Governor Tim Walz’s oversight.
Story Highlights
- Treasury Secretary orders probe into claims Minnesota welfare funds reached Al-Shabaab terrorists
- Investigation targets $250 million Feeding Our Future fraud scheme from the COVID-19 pandemic
- Trump administration acts swiftly to prevent American tax dollars from funding global terrorism
- Governor Walz welcomes the investigation while defending Minnesota’s Somali community from broad accusations
Treasury Secretary Orders Immediate Investigation
Treasury Secretary Scott Bessent announced on the social platform X that he ordered an immediate investigation into allegations that Minnesota tax funds reached the terrorist organization Al-Shabaab.
Bessent directly blamed the “feckless mismanagement of the Biden Administration and Governor Tim Walz” for allowing taxpayer money to fund global terrorism, potentially. The Treasury chief emphasized President Trump’s leadership in taking swift action to protect American taxpayers from inadvertently financing terrorist activities overseas.
BREAKING: U.S. Treasury Secretary Scott Bessent launched a federal probe into claims that Minnesota tax dollars were siphoned to the terrorist group Al-Shabaab under the Biden administration and Governor Tim Walz – an allegation he said demands urgent scrutiny. pic.twitter.com/BvRfsm1oNz
— Fox News (@FoxNews) December 2, 2025
Massive Fraud Scheme Raises Terrorism Funding Concerns
The investigation centers around a $250 million fraud scheme involving the nonprofit Feeding Our Future, which misused funds intended to feed children during the COVID-19 pandemic. Five individuals were convicted in 2024 for their role in this massive fraud operation.
Conservative publication City Journal reported that millions of dollars from Minnesota welfare programs allegedly reached Al-Shabaab, prompting Republican state lawmakers to request federal intervention. Most defendants charged in Minnesota’s various fraud cases are connected to the state’s Somali community, according to CBS News reporting.
Conflicting Views on Terrorist Funding Links
Former U.S. Attorney Andy Lugar told The Minnesota Star Tribune that convicted fraudsters “were looking to get rich, not fund overseas terrorism,” suggesting profit motives rather than deliberate terrorist financing.
However, the Treasury’s investigation will determine whether funds ultimately reached terrorist organizations regardless of original intent. This distinction becomes crucial as investigators examine the complex web of financial transactions that may have inadvertently or deliberately supported Al-Shabaab operations. The scope of the investigation will likely examine both intentional and unintentional funding pathways.
Walz Welcomes Investigation While Defending Community
Governor Tim Walz told KTTC that he welcomes the federal fraud investigation while defending Minnesota’s Somali community from broad accusations. During a speaking event, Walz warned against painting “an entire group of people with that same brush—demonizing them, putting them at risk when there is no proof to do that.”
The governor expressed willingness to cooperate with federal investigators to identify criminals and trace missing funds. This balanced approach reflects the challenge of addressing legitimate fraud concerns while protecting innocent community members from unfair targeting.
Trump Administration Takes Decisive Action
President Trump previously revoked legal protections for Somali residents in Minnesota in November 2025, accusing Walz of operating “a hub of fraudulent money laundering activity.”
The Treasury investigation represents the Trump administration’s commitment to preventing American tax dollars from supporting terrorist organizations worldwide.
Bessent promised to share findings as the investigation continues, ensuring transparency in determining how Minnesota’s welfare systems may have been compromised. This aggressive approach demonstrates the new administration’s zero-tolerance policy toward any potential terrorism financing, even if inadvertent.
