Treasury investigates claims Minnesota welfare money may have funded al‑Shabaab

Wednesday, December 3, 2025 -Treasury Secretary Scott Bessent announced that the Treasury Department has launched a formal investigation into allegations that taxpayer funds from Minnesota welfare programs might have been diverted to al‑Shabaab. 

He stated that under what he described as “mismanagement,” “hardworking Minnesotans’ tax dollars” may have ended up in the coffers of the terrorist organization.

The probe stems from reports claiming that millions of dollars stolen from Minnesota’s public‑aid system were funneled through informal money‑transfer networks to Somalia, where some of the money allegedly reached al‑Shabaab. 

The welfare programs under scrutiny include aid schemes such as housing‑assistance and other social‑support services, which reportedly saw payouts balloon in recent years.

Officials emphasize that, as of now, no definitive proof has been made public connecting these funds directly to terrorist financing. The investigation aims to establish whether there is a concrete link — and if so, how the diversion happened. Until evidence is produced, the allegations remain under review.