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Walz Tried to Dodges Blame Over $8 Billion Somali Fraud Scandal

Jeffrey Thomas

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Walz Dodges Blame Over $8 Billion Welfare Fraud Scandal

MINNEAPOLIS – Minnesota Governor Tim Walz is facing one of the biggest welfare fraud scandals in American history, with federal officials warning that theft from state and federal aid programmes could top $8 billion.

The alleged fraud, centred on schemes that targeted food assistance, housing support, and services for vulnerable families, has highlighted serious gaps in oversight under Democratic Governor Tim Walz. As the FBI and Department of Justice (DOJ) ramp up investigations,

Tim Walz is under intense pressure for refusing to accept responsibility and instead pointing to federal Covid-era rules and partisan attacks.

What started as a few reports of oddities in child nutrition spending has grown into what prosecutors now describe as the largest Covid fraud case in the country. Shell companies, many reportedly linked to Minnesota’s Somali-American community, are accused of billing for services that never happened, then spending the cash on luxury cars, high-end goods, foreign transfers, and possibly terror-linked transactions.

So far, 78 people have been charged and more than 50 convicted, while the needs of vulnerable children and families were pushed aside in favour of yachts, mansions, and designer labels.

How the Fraud Grew

At the centre of the scandal is the Feeding Our Future case, involving a nonprofit that grew at astonishing speed during the Covid pandemic. The group received federal child nutrition funds that were distributed by the Minnesota Department of Education and meant to pay for meals for low-income children.

Instead, operators are accused of submitting invoices for millions of meals that never existed, with some sites operating as little more than paperwork mills pretending to serve food at $4.50 per fake meal.

DOJ documents outline how the fraud spiralled once rules were loosened in 2020. As pandemic emergency measures relaxed checks and documentation, Feeding Our Future’s annual budget jumped from about $3.4 million to around $200 million.

Insiders at the state agency flagged odd claims as far back as 2019, but meaningful action lagged. A 2022 state audit condemned officials for “creating opportunities for fraud” by brushing aside glaring warning signs, such as meal counts that made no sense and sites listed in strip malls with no proper verification.

The problems were not limited to food programmes. Similar scams cropped up in Housing Stabilization Services (HSS), a scheme created to keep older people and people with disabilities from becoming homeless. Launched in 2020 with a forecast cost of about $2.6 million, it exploded to $104 million in payments by 2024, with investigators now saying most of that money was fraudulent.

Some providers allegedly scraped names from rehab centres, then billed Medicaid for bogus counselling that never took place, pocketing about $61 million in just the first half of 2025. Another group is accused of netting $14 million through false claims for autism therapy, exploiting families desperate for real support.

Unemployment benefits were also hit. During the height of the pandemic, officials say roughly $500 million went out in fake jobless claims. The Centre of the American Experiment’s Minnesota Scandal Tracker now records more than $1.2 billion in confirmed losses since Walz took office in 2019. Even so, whistleblowers and some lawmakers now talk about a much higher figure.

Representative Claudia Tenney (R-N.Y.) has repeated concerns that the true total could reach $8 billion, which she said is “growing by the day”. That would exceed the state’s entire annual corrections budget and comes straight from programmes meant to help the poorest residents.

Critics, including former fraud investigator Kayseh Magan, blame political caution for the slow response. They argue that leading Democrats in Minnesota felt uneasy about targeting fraud in the Somali community, which numbers around 80,000 people and has political influence in the state.

Magan, himself Somali-American, has said it is “uncomfortable and true” that most defendants come from his community, while stressing that the offenders represent a small group exploiting the system. Photos showing convicted offender Abdul Dahir Ibrahim smiling alongside Walz and Representative Ilhan Omar have fuelled public anger and strengthened claims that cosy political relationships gave scammers cover.

Tim Walz’s Pushback: “I Take Responsibility for Putting People in Jail”

Governor Tim Walz, once marketed as an easy-going everyman, has become the political face of the scandal. On NBC’s “Meet the Press“, when asked about his responsibility, Walz replied, “Certainly, I take responsibility for putting people in jail.”

The remark has drawn criticism from both sides of the aisle. An anonymous account claiming to speak for 480 staff members at the Minnesota Department of Human Services called him “100% responsible” and accused his administration of ignoring alarms and punishing whistleblowers.

Walz’s defence has not convinced many sceptics. He has described Minnesota as a “well-run” state with “generous” programmes and has pointed to strong rankings in education and health coverage to argue that the system works overall, even with major fraud cases. Records and court filings tell a different story.

In 2020, a judge reprimanded state officials for cutting off payments to Feeding Our Future without proper procedure, a decision that delayed tougher action. Later, federal authorities asked the state to hold back on some moves to avoid tipping off targets. Even so, state audits have still faulted Walz’s team for earlier failures and poor controls.

On 3 December, House Oversight Committee Chairman James Comer (R-Ky.) opened a formal inquiry and demanded documents from Walz and Minnesota Attorney General Keith Ellison by 17 December. His letter accused the administration of a “cover-up”, citing reports of retaliation against staff who tried to expose fraud.

Comer asked, “What did your administration know, and when?” The U.S. Treasury is also looking at whether money stolen from welfare schemes might have moved to al-Shabaab through hawala networks, a type of informal money transfer, raising fresh concerns about national security.

Walz insists he has nothing to hide and says he welcomes review of the state’s actions, but he has attacked Republican critics for what he describes as anti-immigrant motives and election-year tactics. In a state where Somali voters have helped deliver key wins for Democrats, the political risks are obvious.

Some critics say that focusing on accountability could upset a core voting bloc. Social media is full of anger, with one user writing, “Walz’s Elmer Fudd act isn’t fooling anyone, this happened on his watch.”

Federal Investigators Move In: FBI and DOJ Take the Lead

With trust in state oversight weakening, federal agencies have stepped in as the main force tackling fraud in Minnesota’s welfare system. Since raids on Feeding Our Future sites began in 2022, the FBI and DOJ have brought charges against 78 people tied to that network alone. As recently as August 2025, three more defendants pleaded guilty to about $2.4 million in fake claims.

Acting U.S. Attorney Joseph H. Thompson described the situation as a “far-reaching fraud crisis swamping Minnesota” and praised FBI financial experts for piecing together complex chains of shell companies and bribes.

In September, eight more individuals were indicted in the Housing Stabilization Services case after a joint investigation by the FBI, IRS Criminal Investigation, and the Office of Inspector General at the Department of Health and Human Services. BCA Superintendent Drew Evans said, “Criminals selfishly defraud these programmes, depriving vulnerable Minnesotans,” as investigators tracked stolen money into luxury goods from brands like Louis Vuitton and into foreign business accounts.

In one instance, a defendant is accused of washing about $1.38 million through personal bank accounts.

The investigations are still active and expanding. FBI Special Agent in Charge Alvin M. Winston has promised that investigators are “steadfast in holding accountable those who steal from underprivileged children.”

With questions mounting about possible links to al-Shabaab through hawala transfers, former counterterrorism officials have warned that yes, Covid fraud can feed into extremist networks abroad. Figures in former President Trump’s orbit have seized on the scandal, with ICE raids in Somali neighbourhoods and public comments painting Minnesota as a “fraud hub.”

Pressure on the Somali Community

Minnesota’s Somali community, which has become a central part of life in Minneapolis over the past three decades, now finds itself caught in the middle of a national controversy. Community leaders condemn efforts to “demonise an entire group fleeing civil war”, a line Walz echoed during his NBC interview.

Representative Ilhan Omar, who has faced renewed scrutiny for her connections to some involved figures, told CNN that “these Covid programmes were set up so quickly,” arguing that rushed design and weak controls opened the door to abuse.

Inside the community, tensions are rising. Some Somali Americans say they feel treated as suspects simply because of their background, while others demand a tougher response to those who exploited public trust. Social media comments show how raw the debate has become. One user ranted, “At least 75% of the Somali community on welfare, Walz, Omar, Ellison taking cuts?”

Right-wing commentators have linked the scandal to “open borders and expansive welfare”, while analyst David Asman and historian Victor Davis Hanson have accused Walz of refusing to speak plainly about the scale and nature of the problem.

Tim Walz’s Future in Doubt

As federal investigations press forward and new details emerge, the scandal is reshaping Minnesota’s political outlook. Walz is expected to seek re-election in 2026, but opponents already see an opening. Republicans frame the saga as proof that Democrats have turned Minnesota into a “failed state”.

House Budget Committee Chairman Jodey Arrington (R-Texas) has used the case to hammer home a simple message, asking voters which party they trust with their tax money. Media figures have joined in, with Meghan McCain calling for Walz to resign and calling the welfare scandal “one of the greatest frauds in American history.”

Efforts to claw back stolen funds have moved slowly. So far, only a small part of the billions believed to be lost has been recovered. Policymakers are talking about new guardrails, such as tougher background checks for providers, real-time data tracking, and dedicated fraud units with more independence.

For now, though, many Minnesotans feel punished twice, once when the money was stolen, and again as the state tries to repair broken systems using the same taxpayers’ funds.

The sense of betrayal runs deep. Posts on X warn that “what we uncover will shock America,” and many residents say their faith in state government has sunk to a new low. While lakes and natural beauty still define Minnesota in the public imagination, trust in public institutions seems to sink further every week.

Whether Governor Walz will take full responsibility for what critics call an £8 billion disaster, or continue to argue that federal rules, courts, and political enemies tied his hands, remains at the centre of the fight. Federal agencies keep filing cases, new defendants keep appearing in court, and public outrage continues to grow. For now, the scandal shows no sign of fading from view.

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Trump Outmaneuvers the “British Empire” in the Strait of Hormuz

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Trump Outmaneuvers the "British Empire"

WASHINGTON, D.C. – President Donald Trump has ordered the U.S. government to offer political risk insurance and naval escorts for commercial ships moving through the Strait of Hormuz. The directive follows a pullback by major marine insurers, led by Lloyd’s of London, after threats to Persian Gulf shipping drove war-risk costs higher or pushed coverage off the market.

Supporters say the plan keeps oil and LNG moving and strengthens energy security. Critics say it also challenges a long-standing center of global marine insurance power in London.

The Strait of Hormuz is a narrow 21-mile passage between Iran and Oman. It carries about 20 to 30% of the global seaborne oil trade and a large share of LNG exports from Gulf producers.

After U.S. and Israeli strikes against Iran in late February 2026 (called “Operation Epic Fury” in some reports), threats and attacks around the waterway drove risk levels up fast.

  • By early March, traffic through the strait fell by more than 80%. On some days, tankers did not move at all.
  • Major Protection and Indemnity (P&I) clubs, including Gard (Norway), Skuld, NorthStandard (UK), the London P&I Club, and the American Club, sent 72-hour cancellation notices for war-risk add-ons that took effect March 5.
  • Lloyd’s Joint War Committee widened the “high-risk” area to include the full Persian Gulf. As a result, many underwriters canceled coverage or raised premiums sharply, sometimes two to five times normal levels.

In practice, shipping slowed because money, not missiles, set the limit. Without workable war-risk insurance, shipowners and charterers would not send high-value tankers into danger. That left hundreds of vessels waiting and raised fears of a global energy squeeze.

Lloyd’s holds a major share of marine cargo and war-risk business, and it has long handled complex, high-loss exposures. Its marine roots go back centuries to Britain’s early merchant trade.

Trump’s Response: The U.S. Steps Into Maritime Insurance

On March 3, Trump posted on Truth Social that he had instructed the U.S. International Development Finance Corporation (DFC) to provide “political risk insurance and guarantees” for Gulf maritime trade at a very reasonable price.”

The plan includes:

  • Political risk insurance covering losses tied to war, terrorism, or government actions.
  • Financial guarantees aimed at backing shipowners, charterers, and private insurers.
  • U.S. Navy escorts for tankers when needed, echoing past U.S. protection missions in the region.
  • A later announcement of a $20 billion reinsurance facility meant to steady prices and help restore traffic.

Trump framed the goal in simple terms: “No matter what, the United States will ensure the free flow of energy to the world.”

Using the DFC this way stands out because the agency usually supports development-related financing in emerging markets. Still, there is a recent parallel. In 2023, an insurance effort helped support Ukraine grain exports with participation from Lloyd’s and other firms.

What This Could Mean for Lloyd’s of London and the UK

Lloyd’s remains a global hub for specialty insurance and brings billions into the UK economy each year through premiums, jobs, and related services. Around 50,000 people work in insurance and connected roles in the City of London. Marine and energy coverage sit at the center of that system, and war-risk insurance, while niche, can carry real geopolitical weight.

Some analysts think Trump’s move could pull business away from London over time:

  • If U.S.-backed coverage stays dependable and priced well, some shippers may favor it after the crisis.
  • British headlines have floated the idea that Trump could weaken a roughly £50bn insurance giant.
  • Lloyd’s has taken a cooperative tone with the DFC and says it still leads on war-risk expertise. It also argues coverage is still available, even at higher rates, and that some traffic has started to return.

Even so, the message is hard to miss. A private insurance market in London has long been able to slow trade with pricing and capacity. Now, a state backstop is trying to remove that pressure point.

Bigger Ripple Effects for Energy, Alliances, and Markets

This standoff shows how finance, military power, and energy supply connect in real time.

  • Energy security and prices: By pushing shipments to resume, the U.S. reduces the risk of price spikes at home and helps allies that depend on Gulf oil and LNG.
  • Tension with close partners: In London, some see the policy as a direct hit to a key national industry.
  • Oil market reaction: Prices jumped at first, then eased after Trump’s announcement. Still, war-risk costs remain high, and sentiment is shaky.
  • Limits of insurance alone: Shipping leaders warn that guarantees only help up to a point. If attacks continue, fear can outrun price. At the same time, more naval activity can raise the sense that the route is a live conflict zone.

The administration’s approach blends money, security promises, and military readiness. In effect, the U.S. is presenting itself as the backstop for key sea lanes.

What Comes Next for Hormuz Shipping and War-Risk Coverage

Results will hinge on execution. That includes the fine print of DFC coverage, how it coordinates with private insurers, and whether Navy escorts become routine. Lloyd’s has signaled it can work with the U.S. effort, so a shared model may emerge instead of a clean replacement.

Still, the larger shift is clear. Where private underwriters once had near veto power over a critical chokepoint, direct government support is moving in to keep tankers sailing.

For now, the U.S. has acted to prevent a supply shock, and it has turned an insurance freeze into a test of who guarantees global energy flows.

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CNN Reveals Trump’s GOP Approval Tops Obama and Bush at the Same Point

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New CNN Polling Points to Exceptional Republican Loyalty During Trump's Second Term

ATLANTA – CNNsenior writer and chief data analyst Harry Enten walked through polling that shows President Donald Trump holding unusually strong support inside the Republican Party. Using CNN survey averages and side-by-side comparisons, Enten said Trump’s current approval among Republicans sits well above where Barack Obama and George W. Bush stood with their own parties at a similar stage of their presidencies.

The discussion came up while the panel talked about Trump’s influence in GOP primaries and the impact of his endorsements. According to Enten, the numbers suggest Trump’s pull with Republican voters remains firm. As he put it, Trump’s “magic touch has not seemed to wear off yet when it comes to the Republican base.”

Main Takeaways From Enten’s Breakdown

  • Very high Republican approval: CNN polling averages show Trump at 86% approval among Republicans at this point in his second term.
  • Higher than recent presidents at the same stage: At a comparable moment, George W. Bush was at 77% with Republicans, and Barack Obama was at 77% with Democrats.
  • More intense support, too: 53% of Republicans strongly approve of Trump’s performance. By comparison, Obama measured 48% and Bush 47% on strong approval at the same point.
  • Endorsement power tied to base loyalty: Enten compared Trump’s primary influence to famous athletes like Tom Brady and Babe Ruth. He also said Trump-backed candidates have posted 95% to 99% win rates in recent cycles, helped by tight party loyalty.
  • Standout own-party support in the modern era: Enten summed it up plainly, saying Republicans support Trump more than any 21st-century president’s party supporters at this point.

Even as Trump’s overall national approval moves up and down, the Republican core stays steady. That gap between base support and broader approval is a major part of the story.

Own-Party Approval, Side-by-Side

Here’s the same comparison Enten shared, focused on approval within each president’s own party at roughly the same point in their second terms:

President Party Approval Rating (%) Strong Approval (%) Time Period Context
Donald Trump 86 53 Current (second term, early 2026)
Barack Obama 77 48 Similar point in the second term
George W. Bush 77 47 Similar point in the second term

Source: CNN polling averages and historical figures as cited by Harry Enten. Timelines reflect approximate equivalents across presidencies.

Enten stressed that this level of party unity stands out. In many presidencies, overall approval sits in the 40% to 50% range because the country splits along party lines. In contrast, Trump’s near-unified backing from Republican voters gives him a strong base even when national debates heat up.

Why These Numbers Matter for Trump’s Influence

High own-party approval usually turns into real power inside a party, and Enten argued that’s exactly what’s happening here. Because Republicans approve of Trump at such a high rate, his endorsement often carries major weight in primary elections. Since 2020, Trump-supported candidates have won GOP primaries at a pace that goes far beyond what most endorsements can deliver.

As a result, challenges to Trump-aligned candidates often struggle to gain traction. Even when Trump’s broader public numbers soften, Republican enthusiasm hasn’t dropped in the same way.

Enten’s tone stayed data-focused, but he made clear the size of the gap surprised him. “Look at this: 86% of Republicans approve,” he said, while pointing back to the 77% figures for Obama and Bush.

A Quick Look at Party Loyalty Over Time

Presidents often begin terms with strong support from their party, then see it slip when controversies build or conditions change. In that context:

  • Bush held about 77% party approval at a similar second-term point, before later drops tied to the Iraq War and economic concerns.
  • Obama also measured 77% among Democrats at the same stage, showing solid support but less intensity than Trump’s current numbers.

Trump’s 86% approval, paired with higher strong approval, signals a more locked-in base. That kind of support can cushion a president from pressures that hit other administrations harder.

What to Watch Next

With the 2026 midterms on the horizon, the data suggests Trump still holds major influence within the Republican Party. It’s still unclear how long that strength will last or how it will shape policy fights and candidate choices, but the polling shows little sign of fatigue among GOP voters.

Enten’s segment also highlights something many headline polls miss. National approval matters, but internal party support can say even more about a president’s staying power. After the clip aired, the comments spread quickly on social media and conservative outlets, mainly because the contrast between Trump’s GOP numbers and his broader national approval remains so sharp.

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Sen. Markwayne Mullin Tapped to Replace Kristi Noem as DHS Secretary

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Sen. Markwayne Mullin to Replace Kristi Noem as DHS Secretary

WASHINGTON, D.C. – President Donald Trump is making an early second-term Cabinet change, tapping U.S. Sen. Markwayne Mullin (R-Okla.) as the next Secretary of the Department of Homeland Security (DHS). He will replace Kristi Noem after a rocky stretch that drew heavy attention to the administration’s strict immigration enforcement push.

Trump shared the decision on Thursday on Truth Social. He called Mullin a “Highly Respected” lawmaker and a “MAGA Warrior,” adding that Mullin works well with others and has the “Wisdom and Courage” to move the America First agenda forward.

The shift is scheduled for March 31, 2026, and it depends on Senate confirmation. If confirmed, Mullin would have to give up his Senate seat. Under federal vacancy rules, he could also serve in an acting role while the process plays out.

The announcement came only days after Noem faced sharp criticism in congressional hearings. Lawmakers from both parties pressed her on immigration raids, a disputed $220 million ad campaign urging people to leave voluntarily, disaster response, and DHS spending.

At the same time, reports pointed to frustration inside the administration about the speed and management of mass deportation efforts. That includes high-profile incidents, such as the shooting deaths of two protesters in Minneapolis tied to immigration enforcement officers.

Kristi Noem’s statement to the press

After Trump’s post, Noem spoke at a DHS event and avoided mentioning the change. Instead, she stayed on prepared remarks that backed the president’s priorities. Later, she posted a statement on X (formerly Twitter) and thanked Trump for her new assignment:

“Thank you, @POTUS Trump, for appointing me as the Special Envoy for the Shield of the Americas. @SecRubio and @SecWar are incredible leaders, and I look forward to working with them closely to dismantle cartels that have poured drugs into our nation and killed our children and grandchildren.

The Western Hemisphere is absolutely critical for U.S. security. In this new role, I will be able to build on the partnerships and national security expertise I forged over the last 13 months as Secretary of Homeland Security.”

Trump said Noem will lead “The Shield of the Americas,” a new regional security effort focused on fighting drug cartels across the Western Hemisphere. The administration plans to roll it out on Saturday in Doral, Florida. Noem, a former South Dakota governor, becomes the first Cabinet secretary to leave her post during Trump’s second term.

Why Trump picked Markwayne Mullin

By choosing Markwayne Mullin, Trump appears to want a close ally running DHS as the administration keeps pressing its hard-line immigration strategy. Markwayne Mullin, 48, has strongly defended mass deportations and ICE activity. He has described ICE agents as “red-blooded American patriots.”

Several factors seem to have helped Mullin rise to the top:

  • Loyalty and shared priorities: Markwayne Mullin has stood with Trump on America First policies, especially border security and enforcement.
  • Time on Capitol Hill: He served in the House from 2013 to 2023, then won his Senate seat in 2022 with 62% of the vote. That background may help during confirmation and with tough policy fights.
  • A tough public image: Mullin is known for an aggressive style, plus an undefeated pro MMA record (5-0). Trump pointed to that persona in his announcement.
  • A distinct personal story: Mullin is a member of the Cherokee Nation and is the first Native American senator in two decades. He also ran his family’s plumbing company after earning an associate’s degree, and he often stresses practical results.
  • Alignment on major DHS issues: He has supported strict immigration enforcement, changes to disaster response, and actions against cross-border threats, which track closely with the administration’s goals.

Mullin responded by calling the moment “humbling.” He told reporters he called his father after hearing the news and said, “A little kid from west Oklahoma gets to serve in the president’s cabinet, that’s pretty neat.” He added that he didn’t expect the call, but he’s “excited to get started.”

What it could mean next

The DHS leadership swap lands during a tense period for the department. DHS is dealing with a partial shutdown that has hit some operations and employee pay. On top of that, lawsuits over enforcement tactics continue, and protests against deportations remain active.

Markwayne Mullin’s nomination may draw questions about his limited executive management experience. Still, with Republicans in control, confirmation could move more smoothly.

For the White House, the change looks like an attempt to reset DHS leadership while keeping the broader immigration crackdown on track. Meanwhile, moving Noem into a focused envoy job keeps her in the mix on regional security, while shifting day-to-day DHS control to a new face.

As Markwayne Mullin heads toward confirmation hearings, the spotlight will move to his plans for mass deportations, FEMA-related reforms, cybersecurity, and ongoing border threats.

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