Minnesota has gone from being the land of 10,000 lakes to the land of billion-dollar frauds. And Gov. Tim Walz (D), who has allowed multiple massive schemes to go undeterred during his reign, appears to be the kingpin.
Reports in recent days claim Minnesota has suffered ungodly amounts of taxpayer-funded fraud under Walz, much of it allegedly perpetrated by members of the state’s large Somali community.
The North Star State, still reeling from news of a $250 million Feeding Our Future fraud case, saw the City Journal uncover further malfeasance, with Somalis allegedly taking advantage of the state's Medicaid Housing Stabilization Services program. They've even been accused of funneling millions of those fraudulently obtained funds to the terror group Al-Shabaab.
The scope and dollar figures of the collective fraud are eyewatering, frankly—$1 billion in total losses across various public assistance programs.
We repeat, $1 billion (a figure impossible to say without using Dr. Evil's voice).
Now, Fox News is reporting the fraud may be far wider and far more costly to the Minnesota taxpayers than previously thought.
"Fraud investigators are finding in Minnesota is growing by the day," reports Fox News National Correspondent Garrett Tenney. "Kelly Loeffler, who leads the Small Business Administration, says in the two days her agency has been investigating the state, they've uncovered at least $1 million in PPP fraud."
Tenney notes that several whistleblowers have told lawmakers "they believe the total amount of fraud could total up to more than $8 billion."
🚨BREAKING: Minnesota’s Somali fraud may reach $8 BILLION, not just $1 billion as first reported.
— Jack (@jackunheard) December 5, 2025
pic.twitter.com/dfiqKw4uCF
READ MORE: Tim Walz Gets Skewered by Kristi Noem Over Visa Fraud, As MN Is About to Feel the Wrath of ICE
New Scandal Erupts in MN After Dem-Appointed Judge Tosses $7.2M Taxpayer-Fraud Conviction
Walz's folksy Elmer Fudd persona isn't steering people away from the unwanted media attention on this massive scandal either. He's alternated between making excuses and refusing to take accountability.
“And in spite of the headwinds we’re up against, Minnesota ranks economically, economic growth, happiness, number of people insured, education levels near the very top," he told reporters in discussing a state budget that shows a surplus, though it neglects to factor in the massive fraud.
"If folks are going to commit crimes here, thinking because our generous spirit and our programs that we have is going to give them some kind of cover, they are sadly mistaken," he added.
Great. Only after you've lost $8 billion will you get super-serious about policing your "generous" programs.
Aside from Walz's incompetence, RedState Editor Bob Hoge reports that Rep. Ilhan Omar (MN-5) has some familiarity with at least two of the beneficiaries of the fraud saga.
She, likewise, struggled to explain what was going on in her state involving the Somali-linked fraud when pressed by CNN anchor Jake Tapper.
"I think what happened, um, is that, you know, when you have these, kind of new programs that are, um, designed to help people, you're oftentimes relying on third parties to be able to facilitate," Omar said. "And I just think that a lot of the COVID programs that were set up — they were set up so quickly that a lot of the guardrails did not get created."
Jake Tapper: Why did fraud in Minnesota get so out of control?
— Townhall.com (@townhallcom) December 4, 2025
Ilhan Omar: I think what happened, um, is that, you know, when you have these, kind of, new programs that are, um, designed to, uh, help people...I just think that a lot of the COVID programs...were set up so quickly… pic.twitter.com/YcaTqC5LYG
Hmmm - Who is in charge of setting up those guardrails? Some might wonder whether the so-called guardrails were intentionally left down to allow fraud to run rampant in a community where some individuals have close ties.
By some, I mean me. I'm wondering that.
As for Walz, Department of Homeland Security (DHS) Secretary Kristi Noem was kind enough to explain two possible reasons for his allowing such widespread fraud to take place on his watch.
Noem, at a recent cabinet meeting, told President Trump, "That wacko Governor Walz either is an idiot, or he did it on purpose."
Both, of course, are likely true.
Minnesota’s socialist welfare state fueled the largest fraud case of the pandemic, even as whistleblowers begged officials to shut it down.
— Kelly Loeffler (@SBA_Kelly) December 5, 2025
SBA is uncovering the depth of the abuse, but one thing is clear: from food assistance programs to PPP, American families paid the price. pic.twitter.com/1vOe6uRjB1
Loeffler notes that this type of fraud is "exactly what the Democratic socialist welfare state is."
"It's massive fraud where officials look the other way, enrich themselves for it, and then hardworking Minnesotans, hardworking Americans pay for it in the form of taxes," she said.
RedState reporter Nick Arama notes that the Somali-linked fraud in Minnesota is being investigated and that Governor Walz himself was being scrutinized. His role in what was taking place has been amplified by a whistleblower account that claimed to represent hundreds of Minnesota Department of Human Services employees, alleging Walz was "100% responsible."
The fraud has reportedly been ongoing for years under the Walz administration. Officials who "enrich themselves," as Loeffler states, through criminal activity should have to pay a price for those crimes as well.
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