In what is shaping up to be one of the most damning welfare fraud revelations in recent memory, a new investigative report from City Journal — authored by Chris Rufo and Ryan Thorpe — alleges that millions of taxpayer dollars from Minnesota’s welfare system have not only been stolen through widespread fraud but funneled overseas to fund terrorism, including the al-Qaida-linked Somali group Al-Shabaab.
The article, which dropped Wednesday, has already ignited national headlines — and for good reason.
According to the report, former acting U.S. Attorney for the District of Minnesota, Joe Thompson, had been investigating an alarming array of fraud cases inside Minnesota’s welfare system. The scale was so vast that Thompson described the situation bluntly as a “crisis.” At the center of the investigations was the Medicaid Housing Stabilization Services (MHSS) program — a program the state itself moved to terminate this past August due to overwhelming fraud.
BREAKING: MPD Police Chief O’Hara asks for forgiveness for exposing the reality of Somali criminal activity in Minneapolis pic.twitter.com/SFkWW2ZSXy
— End Wokeness (@EndWokeness) November 21, 2025
“This is the first wave of charges,” Thompson said during a press conference in September. “What we see are schemes stacked upon schemes, draining resources meant for those in need. It feels never ending… the depth of the fraud in Minnesota takes my breath away.”
And that was just the beginning.
Another major scheme under investigation involves alleged fraud tied to autism diagnoses. According to the City Journal report, there was a 13,200% increase in Medicaid claims for autism services in Minnesota — from $3 million in 2018 to $399 million in 2023. A staggering spike, far beyond what natural demand would explain. Simultaneously, the number of autism service providers jumped from 41 to 328 — an increase of nearly 700%, many of them reportedly within Minnesota’s Somali community.
The report alleges that much of the fraud operated through the state’s Early Intensive Developmental and Behavioral Intervention (EIDBI) program, and that millions of dollars in fraudulent claims were routed out of the country — specifically to households in Somalia. The most disturbing claim? Some of those funds made their way to Al-Shabaab, the Islamist militant group designated by the U.S. as a foreign terrorist organization.
A federal counterterrorism source reportedly told City Journal:
“The largest funder of Al-Shabaab is the Minnesota taxpayer.”
That statement is as explosive as it is horrifying.
While the report stops short of naming specific politicians as complicit, it points to a deeply flawed and unaccountable welfare system — a system that expanded aggressively under Minnesota Governor Tim Walz and has been slow to respond to repeated fraud allegations. Minnesota Republicans are now openly sounding the alarm.
He literally has a Somalian translator while he apologizes for enforcing the law.
This is insane. https://t.co/lOWkWGTWPG
— Bonchie (@bonchieredstate) November 21, 2025
Rep. Pete Stauber (R-MN) didn’t hold back:
“As Tim Walz helped create this system and shrugs his shoulders every day when another fraud story is revealed, Minnesotans’ hard-earned tax money is funding terrorists.”
The silence from Democrats — both in Minnesota and at the national level — has been deafening. As of this writing, not one major Democratic leader has addressed the allegations publicly.
The implications here are staggering: not only is taxpayer money being stolen at massive scale, but it may also be directly fueling jihadist violence overseas. The legal, political, and moral failures that allowed this to happen demand immediate accountability — from state lawmakers, federal oversight bodies, and yes, from the politicians who built and defended these programs.
