“The Largest Funder of Al-Shabaab Is the Minnesota Taxpayer”How some of the state’s welfare funds ended up in the hands of a terror group

Perhaps the most surprising aspect of the Somalia fraud story is the scale, with total costs running into the billions of taxpayer dollars. That raises the question: What happened to all that money?
The Somali fraud rings have sent huge sums in remittances, or money transfers, from Minnesota to Somalia. According to reports, an estimated 40 percent of households in Somalia get remittances from abroad. In 2023 alone, the Somali diaspora sent back $1.7 billion—more than the Somali government’s budget for that year.
Our investigation reveals, for the first time, that some of this money has been directed to an even more troubling destination: the al-Qaida-linked Islamic terror group Al-Shabaab. According to multiple law-enforcement sources, Minnesota’s Somali community has sent untold millions through a network of “hawalas,” informal clan-based money-traders, that have wound up in the coffers of Al-Shabaab.

The Minnesota government hands out taxpayer money with little checking or follow-up.