Treasury Secretary Scott Bessent held a press conference on Friday to address the rampant fraud in Minnesota that has exploded in headlines over recent weeks.
“I am optimistic that we are going to put an end to this waste, fraud, and abuse, that we are going to have recoveries for the American people, and that we are going to hold people accountable, set an example, and make sure that federal aid gets to the people it was intended for and not to these fraudsters,” Bessent stated.
He hammered the state’s left-wing leaders, including Gov. Tim Walz (DFL), for forcing residents to endure their “egregious negligence” and allowing taxpayer-funded welfare fraud to “spiral out of control.”
“Billions of dollars intended for hungry children, housing for disabled seniors, and services for children with special needs, were diverted to people who cheated the system — some of whom are not even American citizens,” Bessent continued.
Minnesota fraudsters stole at least $300 million in taxpayer funds intended for children in need, the secretary estimated.
He announced that the Treasury Department is actively investigating these issues, confirming that some of the funds could have been transferred out of the country to terrorist organizations, such as Somali-based al-Shabaab.
RELATED: Somali terror group cashing in on your tax dollars? Minnesota’s child-care fraud whistleblowers warned about a decade ago.
President Donald Trump, Treasury Secretary Scott Bessent. Photo by SAUL LOEB/AFP via Getty Images
Bessent assured the American people that President Donald Trump and his entire administration are committed to “restoring accountability” and putting Minnesota “back on the right track.”
In response to the pervasive fraud schemes, Bessent announced several new initiatives, including investigations into money service businesses that may have transferred funds overseas, a geographic targeting order for Hennepin and Ramsey Counties that lowers the reporting threshold for overseas transfers to $3,000, and a new IRS task force to investigate COVID-era fraud.
Additionally, he noted that the Financial Crimes Enforcement Network issued an alert to financial institutions to help them identify and report fraud tied to federal child nutrition programs. The Treasury Department is also training Minnesota law enforcement officials on how to detect such schemes.
“We will not let the incompetents and recalcitrants of Governor Walz stop law enforcement from holding these perpetrators accountable,” Bessent declared.
The new protocols placed on Minnesota will serve as a “genesis and a launching pad” for a national rollout.
RELATED: Bessent delivers bad news to Somalis on welfare: No more wire transfers to the homeland
Minnesota Gov. Tim Walz. Photo by Stephen Maturen/Getty Images
A reporter pressed Bessent about Walz’s potential role in the state’s failure to identify and stop the fraud.
“We are actively pursuing all leads to see the level of involvement, whether it’s limited to just negligence and incompetence, or is something more than that,” Bessent responded.
When asked whether Somali government officials directed their citizens to relocate to Minnesota to exploit vulnerable systems, or whether the fraudsters were acting on their own, Bessent replied, “We do not know the depth, breadth, and collusion in this financial calamity that Governor Walz has allowed to have happen.”
“Was this directed from overseas? Is it an endogenous flourishing of these fraudsters that Governor Walz allowed to grow right here in the backyard and take advantage of hardworking people of Minnesota? We’ll see. … We will get to the bottom of it,” he continued.
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