In the final days of 2025, Minnesota finds itself at the center of a sprawling fraud scandal that has shaken public trust, drawn national scrutiny, and ignited fierce political debate. What began as an investigation into a federally funded nutrition program has ballooned into allegations of historic theft, deep-seated systemic failures, and a heated clash over immigration and accountability.
The scandal first burst into the national spotlight in late November, when The New York Times reported that as much as $1 billion of taxpayer money may have been siphoned from a nutrition program intended to feed vulnerable children during the COVID-19 pandemic. The program, administered through nonprofits like Feeding Our Future, was supposed to be a lifeline for families in need. Instead, investigators allege, it became a target for sham vendors, shell companies, and a vast money-laundering network.
FBI Director Kash Patel, in a series of statements posted to X (formerly Twitter), outlined the scale of the operation: "To date, the FBI dismantled a $250 million fraud scheme that stole federal food aid meant for vulnerable children during COVID. The investigation exposed sham vendors, shell companies, and large-scale money laundering tied to the Feeding Our Future network." According to Patel, the case has already led to 78 indictments and 57 convictions, with charges ranging from wire fraud to conspiracy and money laundering. Among those convicted are Abdiwahab Ahmed Mohamud, Ahmed Ali, Hussein Farah, Abdullahe Nur Jesow, Asha Farhan Hassan, Ousman Camara, and Abdirashid Bixi Dool.
But Patel made clear that the story is far from over. "The FBI believes this is just the tip of a very large iceberg. We will continue to follow the money and protect children, and this investigation very much remains ongoing," he stated. He noted that many convicted individuals are being referred to immigration officials for possible denaturalization and deportation proceedings.
The scandal deepened further when independent journalist Nick Shirley posted a viral video on December 27, 2025, showing an apparently empty Minnesota daycare center with a misspelled sign—"Quality Learing Center"—that had reportedly received $1.9 million from the state's Child Care Assistance Program in 2025, bringing its total government funding to $4 million. Shirley, who visited several centers posing as a parent, claimed he never saw any children at the facilities. He called it "potentially the largest fraud scandal in US history." The footage sparked outrage and renewed allegations that state authorities had allowed rampant abuse of taxpayer funds to go unchecked.
Governor Tim Walz, who ran as Vice President on the Democratic ticket alongside Kamala Harris in 2024, has faced mounting criticism from both sides of the political aisle. On December 29, 2025, Walz addressed the scandal after the viral video, insisting his administration was taking strong action: launching investigations, closing one facility, hiring an outside firm to audit payments to high-risk programs, shutting down the Housing Stabilization Services program, announcing a new statewide program integrity director, and supporting criminal prosecutions. "The governor has worked for years to crack down on fraud and ask the state legislature for more authority to take aggressive action," a spokesperson told Fox News.
Despite these steps, critics argue that the response has been too little, too late. House Majority Whip Tom Emmer (R-Minn.) blasted Walz on X, writing, "Your mismanagement of state funds has just been exposed to tens of millions of Americans and you’re posting about ‘Caturday.’ You should be ashamed." Others, including President Donald Trump, have seized on the scandal to attack both Walz and Minnesota's Somali immigrant community. Trump, in a series of inflammatory remarks, accused the state of becoming "a hub of fraudulent money laundering activity" and threatened to revoke the temporary protected status of about 700 Somali nationals. He also called for perpetrators to be "sent back to where they came from."
Vice President Vance joined the chorus of criticism, characterizing the situation as emblematic of broader immigration and welfare fraud. "What’s happening in Minnesota is a microcosm of the immigration fraud in our system," he posted on X. "Politicians like it because they get power. Welfare cheats like it because they get rich. But it’s a zero sum game, and they’re stealing both money and political power from Minnesotans." The president himself has repeatedly targeted Somali immigrants, even though the alleged ringleader of the Feeding Our Future scheme is white. Of the 78 people charged in connection with the COVID-era nonprofit fraud, 72 are Somali, according to prosecutors.
Amid the political firestorm, Walz has sought to defend Minnesota’s reputation and his administration’s record. On December 29, he posted a series of favorable statistics about life in the state, touting it as "#8 state for safety. #5 state to live in. #3 state for jobs. #2 state to raise a family, and #2 state to retire." He acknowledged, "We've made progress, but there's more to do to deliver security, opportunity, and freedom to every Minnesotan. I won't quit fighting until we're #1." Walz also shared photos of himself interacting with members of the Somali community, a gesture some saw as an attempt to push back against the rising tide of anti-immigrant rhetoric.
Meanwhile, federal and state officials continue to grapple with the scale of the fraud. Assistant U.S. Attorney Joe Thompson told FOX 9, "You don't see fraud on this scale in other states. And, part of that is just, we sit here as a team, and it's a relatively small team or a relatively small U.S. Attorney's Office. And every day we look under a rock and find a new $50 million fraud scheme. That shouldn't be the case in a state of our size." Thompson speculated that of the $18 billion spent on vulnerable Medicaid programs in Minnesota since 2018, more than half could have been fraudulent.
Walz’s administration has pushed back against the highest estimates, arguing there isn’t evidence that fraud is quite so rampant. Still, feeling the heat from new fraud cases and the approach of an election year, the state has moved to suspend licenses for suspect programs, create a new "integrity unit," and increase coordination between agencies to combat fraud. Yet, federal agencies and Congress continue to press for answers, and the FBI’s investigation remains ongoing.
As the scandal continues to unfold, it has become a flashpoint for national debates over immigration, government oversight, and the stewardship of public funds. The outcome will likely shape both Minnesota’s future and the tenor of political discourse as the 2026 elections approach.
