SBA immediately pulls $5.5 million in federal funding from Minnesota over the rampant fraud by Somali Migrants under Tim Walz’s watch
The Small Business Administration (SBA) Administrator Kelly Loeffler announced she is ending the full amount of annual federal funding to Minnesota – $5.5 million – because of the rampant fraud tied to Somali-linked schemes.
Loeffler says the goal is to protect hard working American taxpayers from what she described as an “industrial-scale” scam enabled by Democratic Governor Tim Walz.
SBA’s findings include:
People already indicted in a $1 billion Somali fraud scheme received at least $3 million in Paycheck Protection Program (PPP) loans that they used on extravagant lifestyles
An additional 13,600 PPP loans in Minnesota, totaling $430 million, have been flagged as suspected fraudulent, with dozens of investigations now working to uncover the full extent.
The freeze on $5.5 million affects annual grants given through state channels, with Loeffler saying Minnesota,
“cannot be trusted to administer federal tax dollars”
“Its socialist welfare system has enabled fraud at industrial scale,” she said
The fraud in Minnesota is happening under the watch of Tim Walz and Ilhan Omar – (a Somali migrant under investigation for voter, and immigration fraud) – is now expected to reach more than $9 billion across 14 Minnesota social services programs, not including the recent discovery with ‘fake’ daycare centers. *****
Other actions being taken by the Trump administration.
Centers for Medicare & Medicaid Services (CMS, under HHS):
Administrator Dr. Mehmet Oz issued a 60-day ultimatum in early December, demanding Walz audit providers, freeze high-risk enrollments, verify legitimacy, and submit a corrective plan—or risk losing the federal share of Medicaid funding for affected programs.
U.S. Department of Agriculture (USDA):
Launched investigations into SNAP and child nutrition programs linked to the scandals.
Secretary Brooke Rollins said non-compliant states will lose funding (including Minnesota) over data sharing on immigration status,
U.S. Department of Labor (DOL):
Deployed a specialized “strike team” in mid-December for an onsite review of Minnesota’s Unemployment Insurance program over fraud concerns
U.S. Treasury Department:
Secretary Scott Bessent initiated investigations into allegations of stolen funds being sent to t*rrorist groups like Al-Shabaab
Department of Health and Human Services (HHS):
Reviewing $8.6 billion in social service funds, including requests for TANF recipient data
FBI: Director Kash Patel “surged” resources to take down schemes
