Treasury investigating possible funding of terrorist organization with Minnesota tax money

Treasury Secretary Scott Bessent announced on Monday that the Trump administration has initiated an investigation into allegations that Minnesota tax dollars were funneled to Al-Shabaab, the Somalia-based terrorist organization. Bessent stated on the social media platform X that he had ordered the probe after discovering that state funds may have ended up with the group under the mismanagement of the Biden Administration and Governor Tim Walz.

Thanks to the leadership of @POTUS @realDonaldTrump, we are moving quickly to ensure that Americans taxes are not supporting international terrorism, Bessent wrote. He added that updates would be shared as the investigation progresses.

Bessent also highlighted a report from the conservative outlet City Journal, which claims that millions of dollars from Minnesota welfare programs could have reached Al-Shabaab. Republican lawmakers from the state have requested a federal review of the situation.

One notable case of large-scale misuse of funds involved the nonprofit Feeding Our Future, a $250 million fraud uncovered in 2024. Five individuals were convicted for misappropriating money intended to feed children during the COVID-19 pandemic. Former U.S. Attorney Andy Lugar emphasized that those involved sought personal gain, not to finance overseas terrorism.

CBS News reported that many defendants in Minnesotas fraud cases are members of the Somali community. Governor Walz, speaking to KTTC, welcomed a federal investigation while defending the Somali population. He urged critics not to stereotype an entire community based on the actions of a few, saying, Do not paint an entire group of people with the same brushdemonizing them without proof. We will cooperate fully in the investigation to trace where the money went.

Last month, former President Trump revoked certain legal protections for Somali residents in Minnesota, claiming the state was a hub of fraudulent money laundering activity and asserting that Somali gangs were responsible for missing billions of dollars. The president also criticized Governor Walz and Rep. Ilhan Omar, Minnesotas Somali-born congresswoman.

In recent exchanges, Trump and Walz have publicly clashed. Following a controversial remark by Trump, the governor called for the release of Trumps recent MRI results, which the White House confirmed were perfectly normal.

Author: Benjamin Carter