What is going on in Minnesota?
*credit ABC news for cover
*Editors Note: This morning Governor Walz announced he would not seek reelection and suspended his 2026 campaign amid this scandal.
If you’ve been online at all the last few weeks, you’ve definitely seen headlines around the $9 billion of taxpayer funds that seem to have been stolen through massive fraud in social services in Minnesota. Governor Tim Walz has faced backlash for weak oversight, despite 100 mayors from across the state calling for wasteful spending of state funds and fraud to be addressed.
The majority of the fraud is tied to social services deceiving the state by lying about how many people they assist with living. For example, over 800 Somalian-owned non-emergency medical transportation companies have received money from the state but have been alleged to never contain passengers. In fact, many of those transportation businesses have the same name and register at the same addresses as other Somalian owned daycare and healthcare facilities.
In a now-viral video by independent journalist Nick Shirley, a daycare was outed as being closed during working hours when it had received up to $4 million from the state and claimed to have 99 children enrolled. The daycare’s sign also had the word ‘learning’ misspelled, as well as part of the address. Later in the video, they get the cops called on them after visiting a building where 14 individual home-healthcare companies operate out of. Most office doors were locked, and they were yelled at and reported for harassment by simply asking to check the rates at these companies.
In response, Governor Walz has faced scrutiny for claiming that he’s been tackling fraud for years when it is happening in real time. A federal prosecutor has estimated that total fraud exposure from across all fake social service companies could be as high as $9 billion, not to mention some of the stolen money has allegedly been wired to terrorist group Al-Shabaab back in Somalia. It is important to note that hasn’t been proven, but there have been real prosecutions in the past involving Al-Shabaab and Minnesotans.
Why did this continue to happen and carry on for years? Why didn’t state auditors pick this up? How many people were tied to this? There are a lot of questions needing to be answered. The incompetency from the state government led by Walz suggests that some lawmakers could have been aware of or taking a cut from these organizations.
The ‘20s have been a bizarre and difficult time for the majority of Americans. This type of fraud occurring under the noses of all of these politicians should upset all hardworking citizens and the taxpayers of Minnesota that have been struggling to make ends meet. While not all 300,000 Somalian residents in Minnesota were involved in money laundering and fraud, those who were should face justice and the full extent of the law.
-Esen Yildirim
Sources
“Walz ‘strengthened oversight,’ office says after Minnesota fraud report.” The Hill, [date not available], https://thehill.com/homenews/state-watch/5665226-minnesota-governor-defends-fraud-crackdown/.
“Minn.’s Somali social-services scammers may have stolen $9 billion — nearly Somalia’s entire economy.” New York Post, 21 Dec. 2025, https://nypost.com/2025/12/21/us-news/minn-s-social-services-scammers-may-have-stolen-9-billion/.
Schmidt, Corey. “Nearly 100 Minnesota mayors urge fiscal restraint from Walz, others.” St. Cloud Times, 23 Dec. 2025, https://www.usatoday.com/story/news/politics/2025/12/23/nearly-100-minnesota-mayors-urge-fiscal-restraint-from-walz-others/87895504007/.
“Tim Walz pushes back on Minnesota fraud allegations following viral daycare video.” MSN, [date if available], https://www.msn.com/en-us/news/us/tim-walz-pushes-back-on-minnesota-fraud-allegations-following-viral-daycare-video/ar-AA1TbsQx?ocid=BingNewsSerp.