Treasury Secretary Scott Bessent is opening an official investigation into some pretty serious allegations: that Minnesota taxpayer money may have ended up funding Al-Shabaab, a Somali terrorist organization, through what authorities describe as widespread fraud schemes.

Following the Money Trail

Bessent announced the probe Monday on X, referencing reporting by Christopher F. Rufo that claims "America's Somali fraud rings...have stolen billions in taxpayer funds—and sent some to Islamist terrorists back home."

In his post, Bessent wrote that Treasury is "investigating allegations that under the feckless mismanagement of the Biden Administration and Governor Tim Walz, hardworking Minnesotans' tax dollars may have been diverted to the terrorist organization Al-Shabaab."

Billions Allegedly Stolen

Rufo's reporting made the striking claim that Minnesota taxpayers have become the "largest funder of Al-Shabaab," pointing to fraud operations allegedly connected to Somali-American communities in the state.

Bessent promised transparency, stating: "Thanks to the leadership of @POTUS @realDonaldTrump, we are acting fast to ensure Americans' taxes are not funding acts of global terror. We will share our findings as our investigation continues."

Political Firestorm Over Walz's Oversight

The White House isn't pulling punches. On Monday, officials accused Governor Tim Walz of presiding over a $1 billion fraud operation, amplifying President Donald Trump's assertions that Minnesota has become a money-laundering hub tied to Somali refugee communities.

The administration highlighted that 78 of the 86 defendants in an ongoing federal case are of Somali ancestry, a detail that's become central to Republican attacks.

White House press secretary Karoline Leavitt echoed these accusations on X, claiming Walz's "leadership failures" cost taxpayers $1 billion. Rep. Tom Emmer (R-Minn.) piled on, accusing Walz of allowing the money to be stolen while praising Trump for taking action.

For his part, Walz said last week he welcomes a federal investigation into the claims, according to CBS News. His statement came after Minnesota's Republican congressional delegation and GOP state legislators sent letters to U.S. Attorney Daniel Rosen requesting a formal review.