In Minneapolis, Minnesota, federal agents have been conducting door-to-door inquiries at suspected fraudulent operations linked to the Somali-American community, according to a Department of Homeland Security (DHS) statement. Federal prosecutors estimate that up to $9 billion may have been stolen from taxpayer funds through various fraud schemes in Minnesota since 2018, with a significant portion allegedly tied to members of the state’s Somali-American community.
Of approximately 90 individuals charged in these cases, nearly all are of Somali descent, with all but eight of the 86 charged in one major case being of Somali heritage. Federal investigations have expanded beyond food aid to include alleged fraud in autism therapy services, housing stabilization aid, childcare, and Medicaid programs.
DHS Secretary Kristi Noem shared videos on social media showing agents questioning the manager of a Somali-owned convenience store and a sales clerk. DHS stated: “Our agents are conducting a massive operation to identify, arrest, and remove criminals who are defrauding the American people at daycares, healthcare facilities, and other suspected sites.”
The increased scrutiny follows independent journalist Nick Shirley’s investigation into several Minneapolis childcare facilities that appeared deserted despite being licensed for dozens of children. Shirley produced a 42-minute video viewed over 116 million times since its release on December 26, alleging Minnesota Governor Tim Walz “knew about the fraud but never reported it.” Federal Election Commission data indicates Somali-run childcare centers have donated heavily to local Somali politicians.
The FBI has deployed personnel to Minnesota to dismantle large-scale fraud schemes exploiting federal programs. The Department of Justice recently dismantled a $250 million fraud scheme tied to pandemic-era child nutrition programs, resulting in 78 indictments and 57 convictions as of late 2025. FBI Director Kash Patel described this case as “the tip of a very large iceberg.”
House Oversight Committee Chairman James Comer has alleged total losses may approach $1 billion, stating that “walls are caving in” on Gov. Walz due to alleged failures to address whistleblower reports for years. Whistleblowers from the Minnesota Department of Human Services reported being monitored, threatened, and discredited after raising concerns about fraud.
Comer has sent letters to Governor Walz and Attorney General Keith Ellison demanding documents and communications, accusing the administration of reluctance to act and possible cover-ups. He has also summoned seven Minnesota state officials for interviews in January and February 2026. U.S. Small Business Administration Administrator Kelly Loeffler halted $5.5 million in annual funding to Minnesota over suspected fraudulent Paycheck Protection Program loans.
Governor Walz denied systemic failures, warning against demonizing the Somali community based on the actions of a few. Rep. Ilhan Omar (D-Minn.) criticized the investigations as scapegoating, calling the focus on her community “creepy and unhealthy” and its immigration policies “outright dangerous.” Three individuals convicted in the fraud cases are reported to have ties to Omar’s office or campaign events.
