This was a chilling discovery.

A major new investigation has revealed that Minnesota tax dollars were quietly flowing to an al-Qaeda–linked organization, raising serious questions about how state agencies in a Democrat-run state allowed such widespread abuse of public funds.

According to a bombshell report from Manhattan Institute researchers Ryan Thorpe and Christopher F. Rufo, millions of dollars from several Minnesota welfare and nonprofit programs were stolen through coordinated fraud rings and then funneled overseas — ultimately benefiting Al-Shabaab, one of the most dangerous jihadist groups in East Africa.

This investigation exposes a stunning level of government failure. And it raises an even bigger concern: How many other blue states are letting taxpayer money slip through the cracks?

Taxpayer Money Leaving Minnesota — And Landing in Terrorists’ Hands

Thorpe and Rufo’s research began with a simple question:
Where did all the missing money go?

Their findings were alarming:

• Fraud networks operating inside Minnesota moved large sums of money overseas.
• Transfers were routed through hawalas — informal Somali money-transfer systems.
• Federal counterterrorism officials confirmed that millions in stolen welfare funds were ultimately received by Al-Shabaab.

A retired Seattle Police detective who served on a federal Joint Terrorism Task Force told the investigators:

“The largest funder of Al-Shabaab is the Minnesota taxpayer.”

Another federal source explained that nearly every dollar leaving the Somali diaspora communities eventually provides some benefit to the terror network — whether directly or indirectly.

A Welfare Program That Exploded Into a Massive Fraud Operation

Minnesota’s Housing Stabilization Services (HSS) program was originally pitched as a small $2.6 million initiative to help vulnerable residents keep a roof over their heads.

But what happened next is what always seems to happen under Democrat leadership:

• The program ballooned far beyond its budget.
• In its first year, it paid out over $21 million.
• By mid-2025, payouts skyrocketed to $61 million in just six months.

The Minnesota Department of Human Services eventually shut the program down after terminating 77 providers for credible fraud allegations.

Soon after, federal prosecutors charged multiple individuals — all connected to Minnesota’s Somali community — with operating a network of fake companies, ghost clients, and fabricated billing schemes designed specifically to drain taxpayer funds.

Acting U.S. Attorney Joe Thompson said these scams didn’t involve simple overbilling — they involved deliberate fraud, often targeting vulnerable people recently released from rehab.

Feeding Our Future: The Fraud Grows Even Bigger

The scandal only widened from there.

The nonprofit Feeding Our Future exploded in size during the pandemic, ballooning from just $3.4 million in federal funding in 2019 to nearly $200 million by 2021.

But investigators discovered:

• Fake meal counts
• Invented attendance sheets
• Forged invoices
• Claims of serving “thousands of children per day” that never existed

The money — your money — was used to buy luxury cars, lavish homes, overseas real estate, and more.

When investigators began asking questions, Feeding Our Future responded by suing the state — claiming “racial discrimination” while state documents showed the group “caters to” foreign nationals. Several individuals connected to the organization even donated to Rep. Ilhan Omar, and one of Omar’s staffers advocated on the group’s behalf.

Today, the number of defendants in the Feeding Our Future scandal has grown to 77 — a staggering number that underscores the scale of the abuse.

Another Scheme: Fake Autism Services for Cash Kickbacks

Days later, prosecutors revealed yet another scam.

Asha Farhan Hassan — also tied to the Feeding Our Future scandal — was charged in a $14 million autism-services fraud ring. Investigators say she helped facilitate:

• Fake autism diagnoses
• Cash kickbacks to parents
• Monthly payments of $300–$1,500 per child
• Fraudulent medical billing

Acting U.S. Attorney Thompson warned:

“These massive fraud schemes form a web that has stolen billions of dollars in taxpayer money.”

Political Fallout for Minnesota’s Democrat Leadership

Minnesota State Rep. Kristin Robbins, who is challenging Democrat Gov. Tim Walz, responded by posting the report online and warning voters:

“Billions of our tax dollars have been stolen under Tim Walz.”

She is now calling on federal leaders — including former Florida Attorney General Pam Bondi and incoming FBI Director Kash Patel — to help determine whether Minnesota’s tax dollars are funding terrorism overseas.

BOTTOM LINE

This investigation shows exactly what happens when Democrat-run bureaucracies operate with little oversight:

• Taxpayer money disappears.
• Foreign networks exploit the system.
• Terror groups get richer.
• And the people paying the price are everyday Americans.

President Trump was right to demand stronger oversight, tighter controls, and accountability for every tax dollar. This scandal in Minnesota proves exactly why.