Shocking revelations have emerged that taxpayer dollars in Minnesota may have fueled the deadly ambitions of Al-Shabaab, an Al-Qaeda affiliate, through widespread welfare fraud, raising urgent questions about oversight in progressive-led programs.
According to the Daily Caller, on Nov. 20, 2025, City Journal exposed how millions in state welfare funds, including from the Minnesota Department of Human Services, were allegedly diverted by members of the Somali community to the terrorist group Al-Shabaab, prompting scrutiny of Gov. Tim Walz’s administration after federal probes revealed rampant fraud in a housing program.
The troubling report by City Journal, published on Nov. 20, 2025, detailed how welfare fraud within Minnesota’s Somali population has reportedly channeled public funds to a dangerous terrorist organization. Al-Shabaab, tied to Al-Qaeda, stands accused of receiving these ill-gotten gains.
According to the findings, “untold millions” of state dollars flowed from Minnesota to overseas operatives. These funds, partly sourced from the Minnesota Department of Human Services, were meant to support vulnerable residents, not violent extremists.
The money trail allegedly ran through “hawalas,” clan-based money transfer systems, before being laundered to Al-Shabaab. This shadowy process highlights a glaring vulnerability in how public assistance is distributed and monitored in the state.
Al-Shabaab’s lethal record, as noted by the Office of the Director of National Intelligence, includes killing Americans in attacks worldwide. Adding to the alarm, one of its operatives was convicted in November 2024 for plotting a 9/11-style assault on U.S. soil.
Democratic Gov. Tim Walz now faces intense criticism as federal investigations uncover systemic fraud in a key state program. The Housing Stabilization Services initiative, intended to secure taxpayer-funded housing for the needy, became a conduit for abuse.
On Oct. 31, 2025, Minnesota authorities shuttered this program due to pervasive fraudulent activity. Of the eight individuals federally charged in connection with the scheme, six are of Somali descent, per a Department of Justice spokesperson.
The scale of this misuse of public resources is staggering, yet neither the Minnesota DHS inspector general’s office nor the FBI’s Minneapolis field office offered comments to the Daily Caller News Foundation. This silence only fuels public concern over accountability.
An unnamed source with past ties to law enforcement counterterrorism efforts spoke candidly to City Journal about the issue. Their words cut to the heart of a deeply troubling reality for Minnesota taxpayers.
“This is a third-rail conversation, but the largest funder of Al-Shabaab is the Minnesota taxpayer,” the source stated. Such a claim demands immediate attention and action from state leaders.
Yet, one must wonder if progressive policies prioritizing expansive welfare over stringent oversight have opened the door to such exploitation. While compassion is vital, safeguarding taxpayer dollars from terror funding must take precedence.
The City Journal report lacks specifics on the timeframe or exact programs funneled to Al-Shabaab, leaving gaps in the full picture. Still, the implications are clear: vulnerabilities in state systems pose national security risks.
This scandal erodes trust in government programs meant to aid the disadvantaged, especially under an administration championing expansive social initiatives. It’s a bitter irony that goodwill can be twisted into support for global threats. As Minnesota grapples with these revelations, the nation watches for answers and reforms. Taxpayers deserve assurance that their hard-earned money won’t bankroll terror, and only rigorous oversight can restore that confidence.