Terrorist Networks FUNDED With Taxpayer Money

Silhouette of hands exchanging money in dim light.

House Oversight Committee Chairman James Comer just accused Minnesota’s Democratic leadership of enabling a staggering $9 billion fraud scheme that may have funneled taxpayer dollars to overseas terrorist networks.

Story Snapshot

Minnesota faces allegations of $9 billion in social services fraud across child nutrition, autism services, and housing programs
Federal prosecutors have charged 98 defendants, with 64 convictions already secured in related cases
Governor Tim Walz and Attorney General Keith Ellison are accused of ignoring whistleblower warnings for years
Congressional hearing reveals potential retaliation against state employees who tried to sound the alarm
Investigation expands beyond initial $240 million Feeding Our Future scandal to encompass multiple state programs

The Scope of Alleged Fraud Reaches Historic Proportions

The congressional hearing revealed fraud allegations that dwarf initial estimates. What began as a $240 million scandal involving the Feeding Our Future nonprofit has exploded into a $9 billion investigation spanning multiple social services programs. Chairman Comer’s committee detailed how fraudsters allegedly exploited programs designed for Minnesota’s most vulnerable populations, including children needing nutrition assistance, individuals with autism requiring specialized services, and low-income disabled residents seeking housing.

Federal prosecutors have already demonstrated the seriousness of these allegations through aggressive enforcement. The U.S. Attorney’s office has charged 98 defendants in related cases, securing convictions against 64 individuals. The majority of those charged are of Somali descent, raising complex questions about community targeting while highlighting the significant scale of the alleged criminal enterprise.

Warnings Ignored and Whistleblowers Silenced

Republican state lawmakers testified that they repeatedly warned the Walz administration about suspicious activities in social services programs. Representatives Kristin Robbins, Walter Hudson, and Marion Rarick detailed their unsuccessful attempts to alert state officials to fraudulent schemes. According to their testimony, these warnings were not only dismissed but may have triggered retaliation against concerned state employees.

The hearing revealed troubling allegations that whistleblowers faced surveillance and intimidation after raising concerns. Even more disturbing, witnesses claimed that Governor Walz’s administration dismissed critics by labeling their concerns as racism or Islamophobia, effectively shutting down legitimate fraud investigations. This pattern of silencing internal warnings allowed the alleged schemes to continue unchecked for years.

Federal Oversight Exposes State Leadership Failures

Chairman Comer’s investigation has exposed a fundamental breakdown in state oversight mechanisms. Minnesota relies heavily on federal funding, with approximately 35 percent of the state budget coming from federal grants. This dependency creates a clear responsibility for state officials to protect federal taxpayer dollars from fraud and misuse.

The committee has invited Governor Walz and Attorney General Keith Ellison to testify on February 10, 2026, demanding they explain their handling of fraud reports. Their responses, or potential refusal to testify, will significantly impact the investigation’s trajectory. Comer has already requested extensive documentation and suspicious activity reports from the Treasury Department, indicating this investigation will continue expanding.

Broader Implications for Social Services Nationwide

This investigation sets a precedent for federal oversight of state-administered social programs across the nation. The scale of alleged fraud in Minnesota raises questions about similar vulnerabilities in other states, particularly those with expanded pandemic-era social services. The hearing emphasized that federal taxpayers deserve accountability when their dollars fund state programs.

The committee’s work may lead to significant reforms in how federal grants are monitored and distributed. Enhanced oversight mechanisms could prevent similar fraud schemes while ensuring legitimate beneficiaries continue receiving necessary services. However, these reforms must balance fraud prevention with maintaining access for vulnerable populations who depend on these critical programs.