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Federal Probe Uncovers $1B Fraud in Minnesota's Tax System

12/9/2025

Summary

Story summary

U.S. Treasury Secretary Scott Bessent announced a federal investigation into allegations that Minnesota tax dollars were diverted to Al-Shabaab, citing $1 billion in fraud during Walz's administration.
Walz said fraud will be punished and criticized the probe as politically motivated, blaming social media posts by President Donald Trump.
An audit found one-third of Minnesota commercial driver’s licenses were illegal, prompting federal compliance demands Walz called unhelpful for residents.

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Story summary

U.S. Treasury Secretary Scott Bessent announced a federal investigation into allegations that Minnesota tax dollars were diverted to Al-Shabaab, citing $1 billion in fraud during Walz's administration.
Walz said fraud will be punished and criticized the probe as politically motivated, blaming social media posts by President Donald Trump.
An audit found one-third of Minnesota commercial driver’s licenses were illegal, prompting federal compliance demands Walz called unhelpful for residents.