Bold claim: Minnesota is at the center of a widening federal probe, with the Small Business Administration’s leader directing an investigation into a major COVID-era funding scheme. This development adds to a cluster of investigations targeting the state as officials scrutinize how relief funds were distributed and used.
The SBA, led by Administrator Kelly Loeffler, announced on social media that a network of Somali organizations and executives connected to the Minnesota COVID fraud case would be examined. She noted that multiple individuals and nonprofits indicted in what prosecutors described as a $1 billion fraud scheme—including Feeding Our Future—had received SBA Paycheck Protection Program loans along with other state and federal funding. Loeffler stated that an investigation into the implicated network was being ordered.
Loeffler also leveled a broad accusation at Minnesota’s governor, Tim Walz, suggesting obstruction, though specifics were not provided. The SBA’s mission is to support small businesses through funding and various programs, which has relevance to the state’s economic landscape amid federal scrutiny.
In parallel, Gov. Walz addressed the federal probes during a Tuesday morning event, linking the investigations to a broader pattern of federal attention toward Minnesota. He implied that the scrutiny correlates with a surge of online remarks from the president and underscored Minnesota’s openness to investigations while distinguishing the state’s actions.
The Loeffler announcement follows recent public statements from the secretaries of the Treasury and Transportation Departments. Treasury Secretary Scott Bessent indicated a probe into claims that defrauded Minnesota tax dollars were channeled to a terrorist organization. Transportation Secretary Sean Duffy warned that more than $30 million in funding could be at risk if current findings about Minnesota’s driver licensing system are confirmed. While neither agency presented concrete evidence in those statements, ongoing reporting continues to track these claims.
The Department of Justice has also pursued Minnesota in separate matters, including lawsuits over sanctuary city policies, Title IX issues, access to voter rolls, and tuition benefits for undocumented immigrants. Additionally, Homeland Security has signaled possible changes to Temporary Protected Status for Somali and Karen communities in Minnesota, which hosts the nation’s largest Somali and Karen populations.
5 EYEWITNESS NEWS has extensively covered Feeding Our Future, labeling it the country’s largest COVID-19 fraud scheme as prosecutors describe it, resulting in charges against nearly 80 individuals. Defendants are accused of diverting nutrition program funds for personal gain, with prosecutors asserting that several also obtained fraudulent Paycheck Protection Program loans.
Minnesota’s Somali community numbers around 80,000 residents, roughly 1.3% of the state’s population; TPS status affects a relatively small portion of that community. As the story unfolds, ongoing coverage is expected to bring new developments and clarifications.
Follow-up note: This is an evolving situation, and updates will continue to emerge from ongoing reporting. Readers are invited to share perspectives on these investigations and their impact on Minnesota’s economy, governance, and immigrant communities.
