News and Commentary

Minnesota’s Somali Welfare Fraud: Taxpayer Cash Funneled To Terrorist Group

The state's Somali community is reportedly sending huge funds to the al-Qaida-linked terrorist group Al-Shabaab.

   DailyWire.com
Minnesota’s Somali Welfare Fraud: Taxpayer Cash Funneled To Terrorist Group
Jahi Chikwendiu/The Washington Post via Getty Images

Under Minnesota Democrat Governor Tim Walz, billions of taxpayer dollars have been stolen, reportedly funneled through fake nonprofits and shell companies, and — alarmingly — some of that money has ended up in the hands of the al-Qaeda-linked terrorist group Al-Shabaab.

As one law-enforcement source bluntly put it: “The largest funder of Al-Shabaab is the Minnesota taxpayer.”

Much of the fraud has been traced to Minnesota’s Somali community, where politically connected fraudsters have allegedly exploited numerous loopholes in the state’s welfare system. The Medicaid Housing Stabilization Services (HSS) program, designed to help seniors, addicts, and the disabled secure housing, quickly became a cash cow for fake providers. Payments soared from $2.6 million to more than $104 million in just a few years. Operators often ran companies out of dilapidated storefronts, billing for services they never intended to provide.

“What we see are schemes stacked upon schemes, draining resources meant for those in need. It feels never-ending,” U.S. Attorney Joseph Thompson said. “I have spent my career as a fraud prosecutor and the depth of the fraud in Minnesota takes my breath away.”

Meanwhile, the Feeding Our Future nonprofit turned a $3.4 million federal child nutrition program into a $200 million fraud machine, as Breitbart reported. Executives fabricated meal counts and invoices, pocketed millions, bought luxury cars, and purchased real estate in the United States, Turkey, and Kenya.

Right now, DailyWire+ annual memberships are fifty percent off during our Black Friday sale. Join now at dailywire.com/blackfriday.

“Our investigation reveals, for the first time, that some of this money has been directed to an even more troubling destination: the al-Qaida-linked Islamic terror group Al-Shabaab,” City-Journal reported. “According to multiple law-enforcement sources, Minnesota’s Somali community has sent untold millions through a network of ‘hawalas,’ informal clan-based money-traders, that have wound up in the coffers of Al-Shabaab.”

Fraudsters didn’t stop there. Minnesota’s Medicaid autism programs exploded from $3 million in 2018 to $399 million in 2023, with Somali-run centers inflating diagnoses and paying parents kickbacks to enroll children in therapy programs they didn’t need. Thompson called this a sprawling “network” of fraud, one that has stolen billions from taxpayers while leaving state officials seemingly asleep at the switch.

Meanwhile, the media and Democratic establishment have largely ignored the issue, leaving ordinary Minnesotans to foot the bill, while their money funds international terrorism.

Create a free account to join the conversation!

Already have an account?

Log in

Got a tip worth investigating?

Your information could be the missing piece to an important story. Submit your tip today and make a difference.

Submit Tip
The Daily Wire   >  Read   >  Minnesota’s Somali Welfare Fraud: Taxpayer Cash Funneled To Terrorist Group