❓WHAT HAPPENED: The U.S. Treasury is investigating allegations of tax dollars being diverted to al-Shabaab and other Somali Islamist terrorist groups due to mismanagement of public funds by Governor Tim Walz (D-MN) and the former Biden government.
👤WHO WAS INVOLVED: U.S. Treasury Secretary Scott Bessent, President Donald J. Trump, Gov. Walz, and the former Biden government.
📍WHEN & WHERE: Statement issued by Bessent on December 1, 2025, via X (formerly Twitter).
💬KEY QUOTE: “At my direction, [the U.S. Treasury] is investigating allegations that under the feckless mismanagement of the Biden Administration and Governor Tim Walz, hardworking Minnesotans’ tax dollars may have been diverted to the terrorist organization Al-Shabaab.” – Scott Bessent
🎯IMPACT: The investigation aims to ensure American taxpayers are not unwittingly funding terrorism and uncover alleged malfeasance and corruption by Walz and the former Biden White House.
U.S. Treasury Secretary Scott Bessent announced late Monday that the Treasury Department has launched an investigation into allegations of mismanagement by Governor Tim Walz (D-MN) and the former Biden government, which allowed over $1 billion in taxpayer dollars to be funneled by members of Minnesota’s Somali immigrant community to Islamist terrorist groups in their home country, including al-Qaeda franchise al-Shabaab. The National Pulse reported earlier on Monday that Gov. Walz is facing allegations leveled by members of his own administration that he ignored evidence of the Medicaid fraud scheme and instead retaliated against the whistleblowers, apparently in an attempt to cover up the corruption.
“At my direction, [the U.S. Treasury] is investigating allegations that under the feckless mismanagement of the Biden Administration and Governor Tim Walz, hardworking Minnesotans’ tax dollars may have been diverted to the terrorist organization Al-Shabaab,” Sec. Bessent wrote in a post on X (formerly Twitter). He continued: “Thanks to the leadership of [President Donald J. Trump], we are acting fast to ensure Americans’ taxes are not funding acts of global terror.”
“We will share our findings as our investigation continues,” the Treasury Secretary added.
Over the Thanksgiving holiday weekend, around 400 Minnesota Department of Human Services employees accused Gov. Walz of enabling and then attempting to cover up a massive Medicaid fraud scheme enacted by members of the state’s Somali immigrant community. “Tim Walz is 100% responsible for massive fraud in Minnesota. We let Tim Walz know of fraud early on, hoping for a partnership in stopping fraud but no, we got the opposite response,” the workers wrote.
The Minnesota state government workers continued: “Tim Walz systematically retaliated against whistleblowers using monitoring, threats, repression, and did his best to discredit fraud reports. Instead of partnership, we got the full weight of retaliation by Tim Walz, certain DFL members and an indifferent mainstream media.”
Around 100 autism clinics in Minnesota are currently being investigated for Medicaid billing fraud involving autism treatments, with the scheme being linked to a number of members of the Somali immigrant community in Minneapolis. It is estimated that over $1 billion in taxpayer dollars was stolen through the scheme, with some of the ill-gotten funds then funneled to Somalia in support of Islamist terrorist organizations, such as al-Shabaab.
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