Minnesota's Fraud Scandal Gets a Boost From Video

A fraud scandal in Minnesota centering on the state's social safety net got a big influx of attention over the weekend thanks to a YouTuber's video. As the controversy unfolds, Democratic Gov. Tim Walz is on the defensive, and the state's large population of Somali immigrants is also in the spotlight as a result. Coverage:

• The start: Last month, the New York Times reported that hundreds of millions of dollars were allegedly stolen from a government-funded program in the state meant to feed children during the pandemic. But dozens of other alleged schemes also surfaced. Authorities say that over the last five years, "fraud took root in pockets of Minnesota's Somali diaspora as scores of individuals made small fortunes by setting up companies that billed state agencies for millions of dollars' worth of social services that were never provided," per the Times.
• Billions? Earlier this month, the first assistant US attorney for Minnesota, Joe Thompson, said that an estimated $9 billion in federal funds backing 14 Minnesota-run programs may have been stolen since 2018, the AP reported. Of the 92 defendants charged, 82 are Somali Americans.
• Gone viral: Nick Shirley, described by Axios as a "MAGA-friendly YouTuber," posted a 42-minute video on Friday featuring him visiting several government-funded child-care centers that don't appear to be actually caring for children. In one viral segment, he visits a Child Learning Center whose sign spells "Learning" incorrectly. Vice President JD Vance tweeted that this "dude has done far more useful journalism than any of the winners" of the 2024 Pulitzer Prizes. FBI chief Kash Patel also acknowledged the "recent social media reports" and said the agency had already been investigating, per USA Today.

• GOP pounces: Republicans have quickly linked the scandal to their broader message on immigration, notes the Hill. Vance called the situation in Minnesota "a microcosm of the immigration fraud in our system." Meanwhile, President Trump has been escalating his attacks on Somali immigrants and has called the state a "hub of fraudulent money laundering activity."
• A counter: An op-ed in the Minneapolis Star-Tribune argues that the state's 80,000-strong population of Somalis is being unfairly smeared by the actions of a relative few. "Let me say it plainly," writes Hamse Warfa. "The overwhelming majority of Somalis in Minnesota live honorably and work hard."
• Walz: A spokesperson for Walz told Fox News in response to the weekend video that the governor "has worked for years to crack down on fraud and (asked) the state legislature for more authority to take aggressive action. … He has strengthened oversight—including launching investigations into these specific facilities, one of which was already closed." Walz also has hired an outside firm to audit high-risk programs. The governor is nevertheless feeling the heat at home, with GOP House Majority Whip Tom Emmer of Minnesota accusing him of mismanaging state funds.