Treasury Secretary Scott Bessent Launches Probe into Alleged Biden-Walz Diversion of Minnesota Taxes to Al-Shabaab Terrorists

Treasury Secretary Scott Bessent announced that his department is scrutinizing claims of welfare fraud in Minnesota potentially channeling public funds to the Al-Shabaab terrorist group. The move targets alleged mismanagement during the Biden administration and under Governor Tim Walz, with Bessent vowing swift action under President Trump’s guidance.

Bessent stated that the investigation aims to safeguard American tax dollars from supporting global terror networks. Officials plan to release updates as the review progresses, highlighting concerns over unchecked fraud in state programs.

Minnesota hosts one of the largest Somali-American communities in the United States, many of whom arrived as refugees fleeing civil war. State welfare initiatives, including Medicaid and child nutrition aid, have long supported vulnerable families but faced scrutiny for oversight gaps.

Reports surfaced earlier this month detailing schemes where providers allegedly submitted fake claims for services like autism therapy and meal programs. These operations reportedly involved ghost clients and inflated invoices, siphoning hundreds of millions from federal and state coffers.

Investigators traced some proceeds through informal money transfer systems known as hawalas to Somalia. Confidential sources alleged portions reached Al-Shabaab, an al Qaeda affiliate notorious for bombings and extortion in East Africa.

The underlying report drew from law enforcement tips and financial audits spanning several years. It is true that Minnesota terminated payments to dozens of providers this year amid fraud probes, recovering some funds through federal prosecutions.

However, the direct link to Al-Shabaab remains unproven in court, with past cases attributing schemes to personal greed rather than ideological motives. Critics note similar accusations circulated in 2018 without yielding terror charges, suggesting the claims may overstate connections for political effect.

Federal authorities have charged over 70 individuals in related fraud rings, mostly from the Somali community, but none faced terrorism counts to date. This gap has fueled debate over whether the narrative amplifies community tensions without fresh evidence.

Media reporting for this story: 45% Right | 25% Left | 20% Center | 10% Unrated

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