Minnesota Governor Tim Walz spoke Friday about the state’s expanding fraud controversy, saying Minnesota’s willingness to help vulnerable residents was exploited by criminals.
Why It Matters
The scandal intensified after more than 60 people were convicted for their roles in diverting hundreds of millions of dollars from a federally funded nutrition program during the COVID-19 pandemic.
The case has also drawn attention from the Trump administration. President Donald Trump has highlighted the fraud tied to the nonprofit Feeding Our Future, in which multiple members of Minnesota’s Somali community have been convicted or face charges.
Trump accused Minnesota’s Somali population of “ripping off” the state. He also said his administration plans immigration enforcement actions targeting Somalis in Minnesota whom he claims entered the U.S. illegally. In a Truth Social post, he alleged—without providing evidence—that “Somalian gangs” are “roving the streets looking for ‘prey.’”
What to Know
In remarks delivered earlier this week, Walz said Minnesota prioritizes basic needs such as food, housing, and education—but that approach has been abused.
“We are a state that chooses not to let people go hungry or homeless or uneducated,” Walz said. “However, that generosity has been taken advantage of by an organized group of fraudsters and criminals. Minnesota’s longstanding high standards of integrity of public funds go hand in hand with a culture of generosity. You can’t have one without the other.”
Walz argued that the surge of federal pandemic aid created opportunities for wrongdoing, saying the funding “opened up the door to relax the guard rails and to have fraud be committed.” He added that people who commit fraud in Minnesota will “eventually go to prison.”
He also announced the appointment of a director of program integrity to coordinate statewide efforts aimed at improving fraud prevention and protecting taxpayer dollars, according to a news release.
Walz also pushed back on the president’s attacks, saying: “I understand when I speak up, it brings Donald Trump’s petty vindictiveness to Minnesota, and this is all about coming and attacking us. He didn’t know anything about this.”
What People Are Saying
Walz said in a statement this week: “If you commit fraud in Minnesota, you will be caught and prosecuted to the fullest extent of the law.”
Trump wrote on Truth Social: “Minnesota, under Governor Waltz, is a hub of fraudulent money laundering activity. I am, as President of the United States, hereby terminating, effective immediately, the Temporary Protected Status (TPS Program) for Somalis in Minnesota. Somali gangs are terrorizing the people of that great State, and BILLIONS of Dollars are missing. Send them back to where they came from. It’s OVER!”
What Happens Next
Treasury Secretary Scott Bessent said on X that the U.S. Treasury will tighten financial reporting requirements for money services businesses to better monitor cash flow in response to Minnesota’s fraud scandal.
He said the Treasury will also issue a geographic targeting order to ensure suspicious activity is reported to the Financial Crimes Enforcement Network.
“Under President Trump, we will not stop until we fully investigate, analyze, and permanently end this massive fraud ring,” he wrote.
