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Minnesota Fraud Scandal Intensifies With Subpoena Threats and New Federal Probes

House investigators signal tougher steps following a Treasury inquiry into alleged overseas transfers tied to pandemic-era aid.

Overview

  • House Oversight Chairman James Comer said he will subpoena Gov. Tim Walz if requested records are not provided in the committee’s probe of Minnesota’s social‑service fraud.
  • Treasury Secretary Scott Bessent confirmed an investigation into allegations that some diverted funds reached Al‑Shabaab, with no terrorism‑financing charges announced to date.
  • Prosecutors say Feeding Our Future fraudulently obtained more than $240 million in child‑nutrition funds, with at least 78 defendants charged and about 60 convictions so far.
  • Court exhibits show purchases including a Porsche, international first‑class travel, jewelry, and real estate, underscoring how proceeds were allegedly spent.
  • Republican lawmakers are pushing measures such as a statewide inspector general and mandatory employee reporting, while Walz’s office cites new investigators, outside audits, and a BCA fraud unit as losses across nutrition, housing, and autism programs are estimated near or above $1 billion.