Investigation Reveals Minnesota Taxpayer Funds Linked to Al-Shabab
A recent investigation has uncovered that taxpayer money from Minnesota is being funneled into the hands of the al-Qaeda-affiliated group al-Shabab. Researchers from the Manhattan Institute, including Ryan Thorpe and Christopher F. Rufo, brought attention to a web of fraudulent activities involving Minnesota’s Medicaid Housing Stability Services program, Feeding Our Future, and other organizations.
It appears that many members of the state’s Somali community are at the center of these scams. Federal counterterrorism officials also noted that millions of dollars in misappropriated funds are being sent to Somalia, benefiting al-Shabab.
The overarching question, according to Thorpe and Rufo, was pinpointing “Where did the money go?” Their inquiry revealed that Somali fraud rings are actively transferring funds from Minnesota back to Somalia. Reports indicate that around 40% of Somali households receive money from abroad, with the Somali diaspora sending a whopping $1.7 billion back to the country in 2023—outstripping the Somali government’s budget for that year.
Thorpe and Rufo further found that this money is ultimately ending up with al-Shabab. Law enforcement officials disclosed that the Somali community in Minnesota has been channeling millions of dollars through a network of money traders known as “hawala,” which is connected to terrorist organizations.
A former police detective on the federal Joint Terrorism Task Force explained to the researchers how a sophisticated financial network was in place, allowing cash to be sent from the Seattle airport directly to the hawala system in Somalia.
“We were able to trace the remittances, and they were often linked to various benefits from the Department of Homeland Security,” the detective said.
A confidential source claimed that “the largest funders of al-Shabab are Minnesota taxpayers.” The impression is that every financial transaction linked to the Somali community in the West—whether in the Twin Cities or across Europe—somehow benefits al-Shabab.
Initially aimed at aiding those in need, the HSS program spiraled into a fraudulent endeavor. Although it was projected to cost $2.6 million, the program disbursed over $21 million in its first year. Claims skyrocketed further, hitting $61 million in just the first half of 2025.
On August 1, the Minnesota Department of Human Services ceased payments to 77 housing providers based on “credible allegations of fraud,” leading to the program’s shutdown. Shortly after, Joe Thompson, acting U.S. attorney for Minnesota, announced criminal charges against several individuals linked to HSS fraud, all of whom are part of the Somali community.
At a September press conference, Thompson commented that the issue extends beyond mere overcharging, indicating that fraudulent entities are often set up specifically to exploit the system. Vulnerable individuals, particularly those recently released from rehabilitation, have been targeted and enlisted for services they never actually received.
On the same day the indictment was announced, the U.S. Attorney’s Office revealed that a 56th defendant tied to the Feeding Our Future fraud scheme had entered a guilty plea. The number of defendants keeps expanding, with announcements of more criminal charges coming as the investigation unfolds.
According to Thorpe and Rufo, Feeding Our Future received $3.4 million in federal funds from the state in 2019, but funding skyrocketed during the COVID-19 pandemic, amounting to nearly $200 million in 2021. Through falsified meal counts and attendance records, the perpetrators claimed to be providing thousands of meals for underprivileged children, but instead used the funds for luxury vehicles and real estate across the U.S., Turkey, and Kenya.
When suspicions arose about the nonprofit in 2020, it filed a lawsuit claiming racial discrimination over unresolved site applications. Notably, some involved donated to Rep. Ilhan Omar’s campaign, and her deputy district director supported the organization.
Thompson recently announced further charges in another fraud scheme, this time related to autism services. Allegations have emerged against Asha Farhan Hassan from the Somali community, accused of spearheading a $14 million scheme for autism services in Minnesota. In this case, Hassan and his associates reportedly exploited children for fraudulent autism diagnoses.
Hassan purportedly offered monthly cash kickbacks for enrollment, suggesting payments between $300 and $1,500 per child. Thompson stressed, “This is not an isolated issue. From Feeding Our Future to Housing Stability Services and now Autism Services, these schemes intricately connect to steal billions in taxpayer money. Each case we bring to light reveals a new piece of this network.”
Representative Kristin Robbins, campaigning against Minnesota Governor Tim Walz, expressed her concerns about the findings, calling attention to the billions lost in taxpayer dollars and the potential connections to terrorism. As of now, Walz’s office has yet to respond to these claims.
