Treasury Secretary Scott Bessent is launching a significant investigation into potential fraud involving Minnesota state tax dollars. The Treasury Department is examining whether funds from Minnesota's Medicaid and social service programs were diverted to the terrorist organization Al-Shabaab, an al-Qaeda-linked group operating in Somalia.

Bessent announced the investigation through social media, stating that the administration is acting quickly to ensure American tax dollars are not funding acts of global terror. The allegations emerged from a report by the City Journal, which detailed how portions of money taken from Minnesota programs may have been routed overseas to Somalia, potentially connecting to Al-Shabaab operations.

Minnesota Governor Tim Walz responded to the investigation by telling Fox News Digital that he would be open to an investigation if there was any connection between Minnesota tax dollars and the terrorist organization. However, Walz has also characterized the focus on Somali Americans as unfair, pushing back against broader claims linking the Somali population to financial crimes.

The investigation comes amid a broader crackdown on fraud in Minnesota. The U.S. Attorney's Office in Minnesota has already charged dozens of defendants across multiple schemes, including housing assistance fraud, pandemic child nutrition fraud, and millions of dollars in false billing for autism therapy services. Prosecutors estimate that taxpayers have lost billions of dollars through these various fraud schemes.

President Donald Trump has made Minnesota's situation a focal point of recent criticism, specifically targeting the state's Somali population. Trump stated to reporters that Somalis have caused significant problems for the state and that tremendous amounts of money are being sent back to Somalia, questioning why the U.S. pays money to Somalia at all.

This investigation represents one of Bessent's first major actions as Treasury Secretary, signaling a focus on preventing tax dollars from potentially funding terrorist organizations. The Treasury Department's involvement indicates the seriousness with which the administration is treating these allegations and the broader fraud concerns in Minnesota.

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