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Report Alleges Minnesota Welfare Fraud Sent Funds to Al-Shabaab Through Hawalas

Federal indictments charge eight defendants with funneling millions from Minnesota Medicaid fraud to Al-Shabaab via hawalas, with Housing Stabilization payouts rising to $61 million in 2025.

  • On Wednesday, Ryan Thorpe and Christopher F. Rufo published a report alleging millions stolen from Minnesota welfare were sent to Somalia, reaching Al-Shabaab.
  • Autism claims rapidly increased as Minnesota's Medicaid Housing Stabilization Services program, launched in 2020 with a $2.6 million estimate, paid out over $3 million in 2021 and $61 million in the first half of 2025, with providers rising from 41 to 328, many within the Somali community.
  • Fraud investigators found schemes using fraudulent autism diagnoses that funneled millions in kickbacks to families and expanded autism providers from 41 to 328.
  • On August 1, Minnesota state government terminated the MHSS program, and in September, then-acting U.S. Attorney Joe Thompson announced charges against eight individuals, with multiple other indictments following.
  • Political figures and prosecutors reacted sharply as the story drew national attention, with Rep. Pete Stauber, R-MN, blaming Governor Tim Walz and a confidential source stating `The largest funder of Al-Shabaab is the Minnesota taxpayer`.
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Hot Air broke the news in Arlington, United States on Thursday, November 20, 2025.
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