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By Aliss Higham
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Minnesota Governor Tim Walz addressed his state’s mounting fraud scandal on Friday, saying that the North Star State’s "generosity has been taken advantage of."
Why It Matters
The scandal erupted after more than 60 people were convicted over involvement with stealing hundreds of millions of dollars from a federally funded nutrition program during the coronavirus pandemic.
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The incident has drawn the ire of the Trump administration. President Trump has seized on the pandemic-era fraud scandal involving the nonprofit Feeding Our Future, in which numerous Somali community members have been convicted or face charges.
He accused Minnesota’s Somali population of "ripping off" the state.
Trump also announced plans for immigration enforcement operations aimed at Somalis in Minnesota who he says entered the U.S. illegally. On Truth Social, he claimed, without providing evidence, that "Somalian gangs are roving the streets looking for ‘prey.’"
Newsweek has contacted Walz's office for comment on the Treasury move via email outside of regular working hours.
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What To Know
Speaking during an address this week, Walz said: "We are a state that chooses not to let people go hungry or homeless or uneducated. However, that generosity has been taken advantage of by an organized group of fraudsters and criminals. Minnesota’s longstanding high standards of integrity of public funds go hand in hand with a culture of generosity. You can’t have one without the other."
He said that federal funding provided during the COVID-19 pandemic "opened up the door to relax the guard rails and to have fraud be committed," and warned that anyone in Minnesota who commits fraud will "eventually go to prison."
He also announced the appointment of a director of program integrity, who will coordinate statewide efforts to strengthen fraud prevention and safeguard taxpayer dollars, according to a news release.
Walz also addressed the comments made by the president, saying: "I understand when I speak up, it brings Donald Trump’s petty vindictiveness to Minnesota, and this is all about coming and attacking us. He didn’t know anything about this."
What People Are Saying
Governor Tim Walz in a statement this week: "If you commit fraud in Minnesota, you will be caught and prosecuted to the fullest extent of the law."
President Donald Trump on Truth Social: "Minnesota, under Governor Waltz, is a hub of fraudulent money laundering activity. I am, as President of the United States, hereby terminating, effective immediately, the Temporary Protected Status (TPS Program) for Somalis in Minnesota. Somali gangs are terrorizing the people of that great State, and BILLIONS of Dollars are missing. Send them back to where they came from. It’s OVER!"
What Happens Next
On X, formerly Twitter, Treasury Secretary Scott Bessent said the U.S. Treasury is increasing financial reporting requirements for money services businesses to better track cash flow in the wake of Minnesota’s fraud scandal.
The Treasury will issue a geographic targeting order to ensure any illegal activity is reported to its Financial Crimes Enforcement Network.
"Under President Trump, we will not stop until we fully investigate, analyze, and permanently end this massive fraud ring," he wrote.
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