Homeland Security Secretary Kristi Noem said federal officials were conducting a fraud investigation Monday in Minneapolis, as part of what she described as a broader effort to pursue allegations of misuse of federal programs. Noem made the announcement as the federal government said it is looking into “childcare and other rampant fraud,” and she posted a video on X showing DHS officers entering an unidentified business and questioning the person working behind the counter, according to AP.
The Minneapolis investigation is described as the latest step in a larger set of cases tied to a nonprofit scheme that prosecutors said centered on Feeding Our Future. AP reported that investigators traced the work to years of inquiry that began with a $300 million scheme involving the Feeding Our Future nonprofit, and prosecutors said 57 defendants in Minnesota have been convicted. Prosecutors said Feeding Our Future exploited a state-run, federally funded program intended to provide food for children.
Noem’s remarks also placed the investigation in a setting she tied to immigration and law-enforcement posture. U.S. Immigration and Customs Enforcement posted that “The American people deserve answers on how their taxpayer money is being used and ARRESTS when abuse is found,” in a message referenced by AP.
In December, AP said a federal prosecutor alleged that half or more of about $18 billion in federal funds that supported 14 programs in Minnesota since 2018 may have been stolen. AP reported that prosecutors said many defendants in those cases are Somali Americans, and that among those running schemes to obtain funds for child nutrition, housing services and autism programs, 82 of 92 defendants were Somali Americans, according to the U.S. Attorney’s Office for Minnesota.
The federal investigation described by Noem also followed comments from FBI Director Kash Patel posted on X the day before. AP reported that Patel said the agency had “surged personnel and investigative resources to Minnesota to dismantle large-scale fraud schemes exploiting federal programs,” adding that earlier fraud arrests in Minnesota were “just the tip of a very large iceberg.”
Minnesota Gov. Tim Walz’s administration has faced questions and criticism in the months-long dispute over enforcement. AP reported that Walz said then that fraud would not be tolerated and that his administration “will continue to work with federal partners to ensure fraud is stopped and fraudsters are caught.” Walz spokesperson Claire Lancaster later said the governor had worked for years to “crack down on fraud,” and that he was seeking more authority from the Legislature to take aggressive action.
AP also reported that in recent weeks tensions had been high between state and federal enforcement in the Minneapolis-St. Paul area, where officials said the Somali community is the largest in the country. The dispute has played out alongside President Donald Trump’s criticism of Walz’s administration over the fraud cases to date, according to AP.
Where exactly DHS officers conducted Monday’s questioning was not specified, and AP described it only as an unidentified business in Minneapolis. Federal and state officials did not provide further details beyond their public statements as the investigation began.