U.S. Treasury now investigating Walz scandal that sent tax money to Muslim terrorists

 December 2, 2025

This story was originally published by the WND News Center.

recent City Journal investigation uncovered the fact that Minnesota state taxpayers likely are the biggest single source of funding for the Muslim terror network of al-Shabaab.

And now U.S. Treasury Secretary Scott Bessent has confirmed that the federal government is investigating the scandal that has developed on the watch of Democrat Gov. Tim Walz.

It is hundreds of millions of taxpayer dollars being diverted to terror.

Now Bessent has said an investigation is under way.

Bessent confirmed the agency is "investigating allegations that under the feckless mismanagement" of Joe Biden in Washington and Walz in Minnesota, taxpayer money in the state was ending up in the hands of terrorists.

He said the agency is "acting fast to ensure" tax dollars are not going to "funding acts of global terror."

report at Breitbart said it is the vast Somali community in Minnesota that has manipulated social welfare programs to gain access to hundreds of millions of dollars, and forwarded much of that to Somalia, where al-Shabaab takes a cut.

The City Journal documented, "Billions in taxpayer dollars have been stolen during the administration of Governor Tim Walz alone. Democratic state officials, overseeing one of the most generous welfare regimes in the country, are asleep at the switch. And the media, duty-bound by progressive pieties, refuse to connect the dots."

The fraud scheme "has allegedly been perpetrated by members of Minnesota's sizeable Somali community. Federal counterterrorism sources confirm that millions of dollars in stolen funds have been sent back to Somalia, where they ultimately landed in the hands of the terror group Al-Shabaab," the report said.

The report noted one source confirmed, "The largest funder of Al-Shabaab is the Minnesota taxpayer."

"If you were to design a welfare program to facilitate fraud, it would probably look a lot like Minnesota's Medicaid Housing Stabilization Services program. The HSS program, the first of its kind in the country, was launched with a noble goal: to help seniors, addicts, the disabled, and the mentally ill secure housing. It was designed with 'low barriers to entry' and 'minimal requirements for reimbursement.' Nonetheless, before the program went live in 2020, officials pegged its annual estimated price tag at $2.6 million," the research charged.

But costs in 2021 alone totaled $21 million, and since then annual totals have been $42 million, $74 million, $104 million.

Prosecutions already have developed because of the alleged fraud. Already, there have been 56 people who admitted guilt in a $250 million "Feeding Our Future" fraud, the report confirmed.

That purportedly was to provide daycare assistance, but it used "fake meal counts, doctored attendance records, and fabricated invoices" to demand reimbursement of nearly $200 million.

"In reality, the money was being used to fund lavish lifestyles, purchase luxury vehicles, and buy real estate in the United States, Turkey, and Kenya," the report confirmed.

This week, both President Donald Trump and White House Press Secretary Karoline Leavitt went scorched earth on Walz.

Trump himself highlighted a report by investigative journalist Amy Mekelburg of the RAIR Foundation in which she indicated: "Minnesota is being systematically transformed – its people replaced, its cities being turned into foreign enclaves, its future rewritten by mass migration and soaring immigrant birth rates, all by design."

The president also posted video of Somalis celebrating their culture in Minnesota.

Leavitt charged, "Somali immigrants have been ripping off American taxpayers."

Also on Monday, a group of Minnesota state government employees confirmed they had warned Kamala Harris, unsuccessfully running as a Democrat for president last year with Walz as her sidekick, about Walz' "his incompetence, fraud scandals and retaliation."

"For public awareness, we did write to Kamala Harris and the DNC – multiple times – warning them about Tim Walz & his incompetence, fraud scandals and retaliation," wrote the Minnesota Department of Human Service Employees account, representing some 480 employees.

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