The White House has strongly criticized former Minnesota Governor Tim Walz, accusing him of allowing a massive fraud operation that cost American taxpayers more than $1 billion during the COVID-19 pandemic. In a sharply worded statement, the Trump Administration argued that Minnesota became “a hub of fraudulent money laundering activity,” with state officials failing to act despite repeated warnings.
According to federal prosecutors, 78 out of 86 individuals charged so far in the sprawling fraud cases are of Somali ancestry. The alleged schemes involved nonprofits falsely claiming to provide food for tens of thousands of low-income children, housing services for the homeless, and therapy for autistic children—many of whom prosecutors say did not exist.
Investigators say the network of nonprofits and affiliates—described as largely connected to Minnesota’s Somali community—used fabricated paperwork, kickbacks, and inflated reporting to siphon off federal dollars. Some of the illegally obtained funds were allegedly used for luxury spending, while parts were reportedly transferred overseas.
Federal authorities, not state officials, have led all enforcement actions. The White House criticized Minnesota’s previous Democratic administration, claiming officials were “reluctant” to intervene due to fear of political backlash and being accused of racism.
Calling the scandal proof of systemic failure, President Trump announced new measures including the termination of Temporary Protected Status (TPS) for Somalis, a halt on migration from “third-world countries,” and a reexamination of green cards issued to individuals from “countries of concern.”
The fraud investigation, considered the largest pandemic-related relief scheme in U.S. history, remains ongoing at the federal level.
