Federal officials from the Department of Homeland Security (DHS) are actively conducting an extensive fraud probe in Minneapolis, according to DHS Secretary Kristi Noem. This investigation builds upon several years of inquiry into illegal activities tied to the nonprofit organization Feeding Our Future, which was implicated in a $300 million fraud scandal. Authorities have secured convictions for 57 individuals in Minnesota connected to this case, which prosecutors describe as the largest COVID-19-related fraud scheme in the United States.
The scammers took advantage of a state-managed, federally funded initiative designed to supply food to children, diverting significant resources for illicit gains. A federal prosecutor highlighted in early December that roughly half or more of the $18 billion distributed to support 14 different federal programs in Minnesota since 2018 might have been misappropriated.
Minnesota Governor Tim Walz responded firmly, emphasizing zero tolerance for fraud and affirming that state authorities would collaborate closely with federal counterparts to prevent further abuses and hold perpetrators accountable.
On Monday, Secretary Noem shared a video on the social media platform X depicting DHS officers entering an unspecified business location and interrogating staff members. She characterized the operation as part of a "massive investigation on childcare and other rampant fraud," signaling ongoing enforcement intensity in this sphere.
U.S. Immigration and Customs Enforcement (ICE) reinforced the public call for accountability, stressing that taxpayers deserve transparency regarding their funds and advocating for arrests upon confirmation of financial misconduct.
Complementing these actions, FBI Director Kash Patel announced an injection of additional personnel and investigative assets into Minnesota to dismantle extensive fraud networks exploiting federal assistance programs.
Director Patel further noted that earlier fraud-related arrests represent only a fraction of a larger issue yet to be fully uncovered. Meanwhile, President Donald Trump has publicly criticized Governor Walz's handling of these fraud cases.
The federal crackdown intersects with heightened enforcement measures targeting the Somali community within the Minneapolis-St. Paul region, the largest concentration of Somali Americans in the nation. This has led to strained relations between state and federal agencies.
According to the U.S. Attorney's Office for Minnesota, among those implicated in the schemes targeting funding streams for child nutrition, housing assistance, and autism-related programs, 82 out of 92 defendants identified are Somali Americans.
A spokesperson for Governor Walz, Claire Lancaster, underscored the administration's long-standing commitment to combating fraud through a combination of criminal prosecutions, enhanced oversight measures, and a legislative push to secure broader authority for more assertive interventions. The governor's approach also includes engaging third-party auditors to review payments within high-risk programs, seeking to plug vulnerabilities increasingly exploited by fraudsters.