Minnesota Welfare Fraud Schemes Totaling Billions Lead to Dozens of Indictments, Allege Somali Community Role and Al-Shabaab Funding

Allegations of massive welfare fraud in Minnesota, potentially totaling billions of dollars, have led to numerous federal indictments, primarily involving members of the state's Somali community. Investigative reports further claim that a portion of these stolen funds was funneled to the Al-Shabaab terrorist organization in Somalia. This situation has sparked a public debate regarding the scope of responsibility within the community.

The alleged schemes encompass various state programs, including the Medicaid Housing Stabilization Services (HSS), the "Feeding Our Future" child nutrition program, and autism therapy services. The HSS program, initially projected for $2.6 million annually, saw payouts surge to $61 million in the first half of 2025 before its termination. Federal prosecutors have announced dozens of charges across these cases, with a significant number of defendants identified as members of Minnesota's Somali community.

Reports by Christopher Rufo and Ryan Thorpe of the Manhattan Institute detailed how "millions of dollars" were allegedly sent from Minnesota to Somalia through informal money transfer networks known as "hawalas." These investigations, citing law enforcement sources, suggest that some of these remittances ultimately reached Al-Shabaab. One confidential source was quoted stating, "The largest funder of Al-Shabaab is the Minnesota taxpayer."

The broad implications of these reports have drawn criticism for potentially generalizing an entire ethnic group. Commentator James Surowiecki addressed this directly on social media, stating, > "This is a tiresome form of argument. Rufo indicted the entire Somali community in Minnesota as thieves. When called on it, he says, 'Oh, so we can't criticize Somalis?' You can criticize Somalis all you want. Holding an entire community responsible for a fraud scheme is absurd." This highlights the tension between reporting on specific criminal acts and avoiding collective blame.

U.S. Attorney for the District of Minnesota Joe Thompson has acknowledged a broader problem, noting that "From Feeding Our Future to Housing Stabilization Services and now Autism Services, these massive fraud schemes form a web that has stolen billions of dollars in taxpayer money." State officials have also taken action, such as scrapping the HSS program, amidst the ongoing investigations into the widespread fraud.