Scott Bessent Says Feds Are Working to Ban Somali Funds from Leaving the U.S.

Any hope the people of Minnesota had that things would quiet down in their state following revelations of widespread and deep corruption tied to Somali scams has evaporated by now. The Trump administration has been flooding the state and the city of Minneapolis with people from all levels of the federal government and just about every major agency, all determined to assess the extent of the depravity. 

In a speech to the Economic Club of Minnesota today, U.S. Treasury Secretary Scott Bessent reiterated the Trump administration's intent to recover funds stolen in the rapidly expanding Somali fraud and corruption scandal. Bessent said that Minnesota is just the beginning of the investigation. 

🚨 SEC. BESSENT: “Minnesota, unfortunately, is ground zero for what may be one of the most egregious welfare scams in our nation's history to date.”
pic.twitter.com/FHZxvOcwTv

— Chief Nerd (@TheChiefNerd) January 8, 2026

According to reports, Bessent said, "Minnesota is ground zero for what may be the most egregious welfare scam in our nation’s history to date. Under Governor Tim Walz, billions of dollars intended for families in need, housing for disabled seniors, and services for children were diverted to benefit fraudsters." 

"I am here this week to signal the U.S. Treasury’s unwavering commitment to recovering stolen funds, prosecuting fraudulent criminals, preventing scandals like this from ever happening again, and investigating similar schemes state by state," he added. 

Afterward, in an interview with Fox News, Bessent said the U.S. is planning to ban people who receive any form of government assistance from wiring that money out of the country, and that tomorrow, he will provide more details on a number of investigations into money service businesses that have allegedly been wiring money out of the country to Somalia. 

🚨 BREAKING: Treasury Secretary Scott Bessent is PERSONALLY here on the ground in Minnesota launching investigations into Somalian fraud

“Enhanced surveillance” is now being used on wires to the Middle East by 4 money services businesses

NEED ARRESTS! pic.twitter.com/MJCV8DWEDt

— Nick Sortor (@nicksortor) January 9, 2026

So far, news reports from Minnesota and throughout the country have indicated that the alleged fraud is not limited to welfare programs but also to daycare, Medicaid, and a range of other scams, even including ambulance transport services. In addition to Minnesota, states that are on the investigators’ radar include California, Washington, Ohio, and New York, among others. 

Fox News reported that Bessent said the Trump administration already has a use for the recovered funds, and that the president’s proposed $1.5 trillion boost in defense spending may be facilitated by the recovery of money that was stolen through fraud, waste, and abuse. 

Just this week, Minnesota Governor Tim Walz said he will not run for a third term as governor but will instead focus on his defense against allegations made against him, which are tied to the state’s welfare fraud scandal. 

Are the walls closing in on Walz? Let’s hope so, but a lot more heads have to roll if the corruption is to come to an end. On top of that, you have to wonder who the masterminds behind all of these scams are. A good number of the Somalis who run these front businesses don't even speak English and can't spell. Who is handling the paperwork and filings for businesses receiving hundreds of thousands and millions of dollars despite being sketchy. People need to go to jail, and quick. 

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