Tim Walz and Donald Trump Face Off as Minnesota’s Billion-Dollar Fraud Scandal Becomes National News

AP Photo/Matt Rourke

Damning details continue to emerge in the bombshell billion-dollar fraud scandal involving Minnesota’s Somali community, as Gov. Tim Walz attempts to deflect blame.

In November, Manhattan Institute’s City Journal reported that networks within the Minnesota Somali community ripped off state Medicaid and social services programs to the tune of more than a billion dollars. Millions of it was allegedly sent back to Somalia via remittances, where the Al-Shabaab terrorist group then took a cut.

Trump’s Response

In the wake of that reporting, President Donald Trump announced the termination of temporary protected status for Somali nationals in Minnesota. The move ultimately only affected a few hundred out of tens of thousands of Somalis in the U.S., but the president’s crackdown escalated sharply in the wake of the last Wednesday’s attack on two national guardsmen in Washington, D.C.

The president posted to Truth Social on Thanksgiving that he would “permanently pause migration from all Third World Countries” and “remove anyone who is not a net asset to the United States or is incapable of loving our Country.” Additionally, Trump called to “end all Federal benefits and subsidies to noncitizens of our Country, denaturalize migrants who undermine domestic tranquility, and deport any Foreign National who is a public charge, security risk, or non-compatible with Western Civilization.”

Playing Catch-Up

The New York Times finally caught up to City Journal’s reporting on Saturday, publishing its own lengthy report under the headline: “How Fraud Swamped Minnesota’s Social Services System on Tim Walz’s Watch.”

As reported on Monday’s AM Update, The Times detailed how federal prosecutors have charged dozens of people with felonies for their alleged roles in the “Feeding Our Future” fraud scheme, which involved COVID-era programs meant to feed hungry children. According to the Department of Justice, the money was instead used by mostly Somali immigrants to funnel hundreds of millions of taxpayer dollars into luxury cars, homes. and even overseas investments. 

Thus far, prosecutors have convicted 59 people across three major schemes – the meals program, a program for individuals at risk for homelessness, and an autism therapy program – with losses totaling more than $1 billion. Of the 86 people charged in connection with these schemes, all but eight have been members of Minnesota’s Somali community.

Walz Makes Excuses

But you would never know that by listening to the obfuscations of Gov. Walz. He was gently asked about the reporting during an appearance on NBC News’ Meet the Press Sunday and deflected the criticism.

When host Kristen Welker asked the former Democratic vice presidential nominee if he would “take responsibility for failing to stop this fraud in your state,” Walz attempted to resurrect his tried-and-failed tough guy shtick

“Well, certainly I take responsibility for putting people in jail. Governors don’t get to just talk theoretically. We have to solve problems. And I will note, it’s not just Somalis,” he claimed. “Minnesota is a generous state. Minnesota is a prosperous state, a well-run state. We’re AAA bond-rated. But that attracts criminals. Those people are going to jail. We’re doing everything we can. But to demonize an entire community on the actions of a few, it’s lazy.

He then turned his attention to the Trump administration. “That is totally disconnected with demonizing an entire group of people who came here fleeing civil war and created a vibrant community that makes Minnesota and this country better,” Walz continued. “But that’s Donald Trump – deflect, demonize, come up with no solutions. He’s not going to help fix anything on fraud. My God, there’s a big difference between fraud and corruption. And corruption is something he knows about.”

The White House’s Rapid Response account pointed out on X what Welker failed to during the interview, which is that these have all been federal cases and the governor was not involved in any of the prosecutions.

She also ignored the fact that The Times reported Minnesota’s nonpartisan auditor found state officials were reluctant to take forceful action due to fears over litigation and negative media coverage involving racism allegations. In other words, “they knew and did nothing because they didn’t want to be called mean words,” Megyn noted.

The Gray Lady spoke to a former investigator in the state attorney general’s office who admitted that “forcefully tackling this issue might cause political backlash among the Somali community, which is a core voting block for Democrats.” One prosecutor said “a huge part of the problem” is that “allegations of racism can be a reputation or career killer.”

Trump vs. Walz

While Welker failed to broach those subjects, she did find time to ask Walz how he felt about President Trump calling him “seriously retarded” in his Truth Social about halting migration. “Look, Donald Trump, insulting means a badge of honor for me. But I think we all know – both as an educator for a couple of decades and as a parent – using that term is just so damaging. It’s hurtful,” Walz said. “This is cruelness. This is meanness. It’s aimed at a broader community.”

He then pivoted to once again bash the president’s proposal. “And as far as demonizing our Somali community, maybe he could help us on some things,” Walz added. “Demonizing an entire community, folks who are in the professions, educators, artists, doctors, lawyers, entrepreneurs, they bring the diversity and the energy to a place like Minnesota. And for him to just randomly decide to do this. It makes no sense.”

Megyn noted that Trump’s immigration crackdown was not done “randomly,” as the governor suggested, but rather was done in the wake of Afghan national being accused of shooting two National Guardsmen. 

Trump, meanwhile, seemingly doubled down on his characterization of Walz aboard Air Force One Sunday night. When asked by a reporter if he stood by using a term that “many Americans do find offensive,” Trump responded: “Yeah, I think there’s something wrong with him. Absolutely, sure… I think there’s something wrong with him. Anybody that would do what he did, anybody that would allow those people into a state and pay billions of dollars out to Somalia… Yeah, there’s something wrong with Walz.”

What’s Next for Walz

After his failed White House bid on the doomed Kamala Harris ticket, Walz put his hat back in the ring to govern the North Star State for a third term. On Monday’s edition of The Megyn Kelly Show, Mark Halperin said Walz was invoking the wrong kind of déjà vu with his response to this growing scandal that now even has the attention of corporate media outlets like The New York Times.

“It’s very reminiscent of how he handled controversies during his vice presidential campaign,” he noted. “He’s got some stuff to say, and he hopes the parade moves on before anybody asks a follow up question.”

And he doesn’t believe that will bode well for the Walz’s 2026 reelection bid. “Minnesota used to have two-year terms for governor. They don’t anymore. It’s four-year terms and no term limits, but no one… has ever successfully been a third term, four-year governor,” Halperin concluded. “And I think he might not break the streak after that answer.”

You can check out Megyn’s full interview with Halperin by tuning in to episode 1,204 on YouTube, Apple Podcasts, or wherever you like to listen. And don’t forget that you can catch The Megyn Kelly Show live on SiriusXM’s The Megyn Kelly Channel (channel 111) weekdays from 12pm to 2pm ET.