by Sharon Rondeau
(Jan. 8, 2026) — In a live report from St. Paul, MN Thursday evening, “The Ingraham Angle” host Laura Ingraham spoke with Treasury Secretary Scott Bessent about the recently-uncovered social-service fraud in the state of Minnesota, particularly in the Minneapolis area, with a certain amount reportedly sent to Somalia and believed to have gone to the terror group Al-Shabaab.
At the outset, Ingraham reminded viewers Bessent is also acting IRS commissioner.
The defrauding operation, said to date back at least seven years under present Governor and former vice-presidential candidate Tim Walz (D) and perhaps farther, is estimated to have cost American taxpayers in excess of $9 billion via individuals allegedly running daycare centers, autism service centers, and nutrition services to children during the COVID-19 school closures.
Many Republicans have accused Walz of being fully aware of the scheme, which is said to have been perpetrated largely within the Minneapolis Somali community, and ignoring it in addition to “retaliating” against whistleblowers who brought their observations and concerns to the administration’s attention.
On Wednesday, two Minnesota state lawmakers testified to the House Oversight Committee that Walz witnessed “staggering amounts of fraud,” and “knew all along” about the graft, taking no action other than creating an atmosphere of intimidation and reassigning some of those who reported it.
According to a press release issued Wednesday by Oversight Committee Chairman James Comer (R-KY1), “Today, the House Committee on Oversight and Government Reform held a hearing titled ‘Oversight of Fraud and Misuse of Federal Funds in Minnesota: Part I.*’ Criminals in Minnesota have stolen an estimated $9 billion in taxpayer funds intended to feed children, support autistic children, house low-income and disabled Americans, and provide healthcare to vulnerable Medicaid recipients. Members of Congress and the Minnesota state lawmakers who testified described how many of these schemes were concentrated within the Minnesota’s Somali community, with some taxpayer dollars diverted to terrorist networks overseas. State lawmakers testified that Governor Tim Walz and Attorney General Keith Ellison failed to take action to address this widespread fraud and have retaliated against whistleblowers who raised concerns. As the Trump Administration continues its efforts to hold those responsible accountable, Congress must also pursue legislative solutions to better protect American taxpayers.”
“Four investigations” will be launched in Minnesota, Bessent told Ingraham, into funds wired to the Middle East or Somalia through “money service businesses” via what he termed a “geographical targeting order.”
“We are here to follow the money” to identify “Somali fraudsters,” he said.
Suspicious Activity Reports (SAR), he said, will be launched by the Financial Crimes Enforcement Network (FinCEN) when amounts exceeding $3,000 are wired outside the country rather than the current $10,000 threshold.
The initiative will require anyone attempting to send money overseas to declare in writing he or sheif receives public assistance, he said, and if so, the applicant will not be permitted to complete the transaction. People falling into that category, Bessent said, receive “too much money,” “and benefits should be cut, or you’re part of this conspiracy.”
“What if they lie…?” Ingraham asked, to which Bessent said, “We are going to push that you can no longer do that. The American people — our generosity has been taken advantage of…That’s what Treasury does.”
Ingraham suggested that certain local “money remittance places” are easily recognizable on the street. “You can tell by the storefront,” she said, describing them as appearing “fake.”
“People are ticked off about this,” she added.
“The GAO believes…if we could cut out fraud, we could build up our military…by 50%,” Bessent said, echoing the president’s sentiment expressed in a Truth Social post on Wednesday.
Ingraham will be speaking with Bessent further on Friday, she said, as the interview concluded.