Militant group pockets defrauded Minnesota welfare funds

Minnesota has come under fire recently for a series of welfare fraud cases culminating in billions of US dollars in taxpayer money lost, some of which have reportedly been funneled to the Somalia-based, Islamic militant group Al-Shabaab. 

Calling Minnesota "a hub of fraudulent money laundering activity," US President Donald Trump announced on November 21 the immediate termination of Temporary Protected Status for Somali immigrants in the state. It has the largest population of Somalis in the US, many of whom have already obtained legal citizenship. 

This crackdown on Minnesota's Somali community follows reports on the connection of some of them to large-scale welfare fraud scandals, among which the 2022 "Feeding Our Future" scandal involved the most people and money. To date, 77 people have been indicted, most of whom are Somalis, according to East Week magazine, sister publication of The Standard. 

Feeding Our Future, a Minnesota-based nonprofit, claimed to operate over 200 children meal distribution sites in the state. It came to light that its reported number of meal distribution sites, attendance records, and receipts were all falsified. By falsely claiming to have provided meals to tens of thousands of underprivileged children, the nonprofit defrauded US$240 million (HK$1.87 billion) in government grants.

This year, the Minnesota government uncovered yet another welfare scandal, which involved Somalis exploiting the state's Housing Stabilization Services program for their own profit. The program was designed to help people with disabilities and seniors obtain safe housing. With loose requirements for application and reimbursement, it became an easy target for abuse. 

Before the program was implemented, the official budget was estimated at US$2.6 million annually, but expenditures exceeded US$21 million in 2021 and surged to US$104 million last year. In the first six months of 2025, total expenditures reached US$61 million. The program was terminated on October 31. 

The fraud ring involved in the HSS program also participated in a federal autism services program, aimed at providing training for individuals under 21 years old with autism spectrum disorder. The fraudsters attracted parents to enroll their children using rebates, but the children were not actually on the autism spectrum, nor did the instructors have any experience in autism services. Applications for the autism services program have exploded in recent years, with expenditures soaring from US$3 million in 2018 to US$399 million in 2023.

According to US media, some Somalis in Minnesota transferred a portion of these fraudulently obtained government funds to Somalia through an informal money-handling network called "hawalas," ultimately ending up in the hands of Al-Shabaab. Allied with Al-Qaeda, the group was designated a Foreign Terrorist Organization by the US government in 2008.