Which federal agencies investigated the Minnesota Somali fraud cases?
Executive summary
Multiple federal agencies have been reported as investigating the Minnesota fraud cases: the U.S. Department of Justice (via a Justice Department criminal probe and U.S. attorney’s office prosecutions), the U.S. Treasury Department (announced by Treasury Secretary Scott Bessent), the Small Business Administration (SBA), U.S. Immigration and Customs Enforcement (ICE) actions tied to enforcement in the Twin Cities, and House Republican oversight inquiries; reporting lists at least DOJ prosecutions and separate investigations or actions by Treasury, SBA and ICE [1] [2] [3] [4] [5]. Sources show disagreement about links to terrorism financing and note federal prosecutors have not charged anyone with terrorism financing to date [1] [6].
1. DOJ prosecutions: the criminal center of the story
Federal criminal charges and guilty pleas in what officials have called the largest pandemic-era meal-assistance fraud have been brought by the Department of Justice and the U.S. Attorney’s Office in Minnesota. Reporters cite at least 77–78 defendants charged in schemes tied to Feeding Our Future and related programs, with dozens pleading guilty—explicitly placing DOJ at the center of enforcement and prosecution [1] [7]. Those federal prosecutions are the most concrete, public-facing federal action documented in reporting [1].
2. Treasury Department: a political escalation and a separate probe
Treasury Secretary Scott Bessent publicly announced that the Treasury Department would investigate whether Minnesota tax dollars were diverted to the Somalia-based militant group al-Shabaab, elevating the issue into counterterrorism-adjacent scrutiny [2] [4]. Reuters and MPR report Bessent’s statement and the Treasury-directed probe; those sources also note the claim that funds reached al-Shabaab is disputed in other reporting and that state prosecutors have not made that terrorism link [2] [4].
3. Small Business Administration: an administrative angle
Reporting indicates the Small Business Administration has launched an investigation into a network of Somali-linked groups in Minnesota tied to the COVID fraud scandal. The SBA’s involvement reflects probes into federal benefit misuse beyond criminal indictments, as noted in TV and cable accounts and summarizing reports [3] [8]. The SBA inquiry focuses on program integrity and may run parallel to criminal matters [3].
4. ICE and immigration enforcement: enforcement spillover into communities
News outlets report stepped-up immigration operations in Minneapolis–St. Paul, with ICE “strike teams” and enhanced enforcement targeting individuals with final deportation orders—an action described as part of a broader federal enforcement response to the fraud revelations [9] [1]. Coverage shows these immigration actions were tied politically to the White House response and to Trump administration rhetoric about Minnesota’s Somali community [9] [1].
5. Congressional oversight and the political theater
House Republican committees have opened investigations into Minnesota’s handling of the fraud, with the House Oversight Committee seeking documents and pushing probes of Gov. Tim Walz and state systems; the Oversight Committee’s public release and demands are a distinct federal oversight track separate from criminal or administrative agency work [10] [5]. This congressional activity is partisan and framed by Republicans as accountability; Democrats and some local officials view it as politically motivated [10] [5].
6. What sources disagree on — and what they do not claim
There is a clear split in reporting over whether stolen funds were routed to al-Shabaab. Treasury’s public announcement says it will investigate that allegation, but multiple federal investigators and local reporting told outlets they have found no evidence so far that taxpayer dollars were funneled to the terrorist group; Minnesota federal prosecutors have not filed terrorism-financing charges [2] [6] [1]. Available sources do not mention any finalized terrorism-financing indictments connected to these Minnesota cases [6] [1].
7. Context and implicit agendas in the coverage
Coverage mixes criminal case reporting with political messaging: White House and allied statements frame the investigations as national-security threats and have pushed policy moves such as ending Temporary Protected Status for Somalis; Republican oversight releases and White House commentary emphasize laundering and terrorism links, while local outlets and some federal investigators push back on the terrorism claim and stress the prosecutions are greedy fraud, not terror funding [11] [5] [6]. Readers should note agencies named (Treasury, SBA, DOJ, ICE) are operating in different domains—criminal prosecution, financial sanctions/tax scrutiny, program-administration review, and immigration enforcement—so “multiple federal agencies” reflects both law-enforcement and politically directed administrative actions [2] [3] [1].
Limitations: reporting in the provided sources is contemporaneous and politically charged; they record agency statements, open probes and prosecutions but do not provide final determinations on terrorism links or list every internal unit involved. For any specific charge, conviction, or formal terrorism-financing finding, available sources do not mention a definitive, final federal finding connecting Minnesota fraud proceeds to al-Shabaab [6] [2].