The U.S. Treasury Department has launched a probe into allegations that Minnesota tax dollars were funneled to a Somalia-based terror group.
Treasury Secretary Scott Bessent announced the investigation on Monday.
The announcement comes after President Donald Trump described Minnesota as a “hub of fraudulent money laundering activity,” where “refugees from Somalia” are taking over.
The White House alleges that dozens of individuals—largely of East African descent—looted taxpayers out of over $1 billion that was intended for child food assistance.
It would be the largest pandemic relief fraud scheme in the country, according to the White House.
Trump announced that he was terminating temporary deportation protections for Somalis living in Minnesota.
The Biden administration had extended Temporary Protected Status (TPS) eligibility for Somalis through March 17, 2026.
According to a report by the non-partisan Congressional Research Service, most Minnesotans of Somali heritage are U.S. citizens, and there are only 705 Somali-born individuals nationwide who have TPS status.
Reuters contributed to this report.
