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The U.S. Treasury Department has launched an investigation into allegations that taxpayer funds from Minnesota may have been improperly diverted to the Somali militant group Al-Shabaab. Treasury Secretary Scott Bessent announced the inquiry on X, following renewed political debate triggered by comments from President Donald Trump. Trump recently referred to Minnesota as a “hub of fraudulent money laundering activity” under Democratic Governor Tim Walz, echoing unverified media reports shared by several Republican lawmakers suggesting that Al-Shabaab may have benefited from fraud schemes linked to the state.
Bessent stated that the investigation was initiated under his direction, accusing both the Biden administration and Governor Walz of “feckless mismanagement” that may have allowed public funds to reach a terrorist organization. The governor’s office has not yet responded to Reuters’ request for comment. Walz has previously said Trump’s rhetoric unfairly targets Minnesota’s Somali community, one of the largest in the United States.
In a recent interview with NBC News, Walz addressed Trump’s claims and acknowledged that individuals of various backgrounds, including some of East African descent, have been convicted in fraud cases related to COVID-19 relief programs. He noted that Minnesota’s prosperity and robust social programs can attract criminals but emphasized that offenders, regardless of their background, are prosecuted. Walz criticized attempts to generalize criminal activity to an entire community, calling such claims “lazy.”
Tensions have risen further after Trump declared he would end temporary deportation protections for Somalis living in Minnesota, asserting that “Somali gangs are terrorizing” the state. His decision speeds up the rollback of a program that originated in 1991 under a Republican administration. The Biden administration later extended eligibility for Somali nationals through March 17, 2026. According to the Congressional Research Service, most Somali Minnesotans are U.S. citizens, and only 705 Somali-born individuals nationwide hold Temporary Protected Status.
The Treasury investigation remains ongoing, and officials have not released additional details about the scope or timeline of the probe.
