MINNEAPOLIS (AP) — Federal Homeland Security officials announced on Monday the initiation of a fraud investigation concentrated in Minneapolis, according to Department of Homeland Security Secretary Kristi Noem.


This investigation follows a prolonged period of scrutiny stemming from a $300 million scheme linked to the nonprofit Feeding Our Future. In total, 57 defendants from Minnesota have faced conviction over what prosecutors claim to be the largest COVID-19-related fraud operation in the country, where the perpetrators took advantage of a state-managed program designed to ensure food accessibility for children.


A federal prosecutor recently indicated in December that potentially up to half of the approximately $18 billion in federal funding allocated to 14 programs in Minnesota since 2018 might have been unlawfully taken, with a substantial number of accused individuals identified as Somali Americans.


Governor Tim Walz expressed that any form of fraud would not be tolerated and assured cooperation with federal counterparts to root out fraud and prosecute those responsible.


In a video posted on social media, Noem depicted DHS officers interrogating a representative at a local business, reinforcing that the investigation targets widespread fraud in childcare services.


A recent communication from U.S. Immigration and Customs Enforcement emphasized the necessity of accountability for the misuse of taxpayer money and demanded arrests in instances of fraud.


FBI Director Kash Patel noted on social media the deployment of additional personnel and resources to Minnesota in response to the substantial fraud schemes perpetrating against federal programs. He cautioned that earlier arrests might represent only a small fraction of a much more significant problem.


President Donald Trump has criticized Walz's administration concerning the existing fraud cases, raising tensions between state and federal authorities in light of ongoing immigration enforcement that particularly affects the Minneapolis-St. Paul area’s Somali community, the largest in the U.S.


The investigation focuses on various fraudulent activities linked to funding for child nutrition, housing services, and autism programs, with the U.S. Attorney’s Office reporting that 82 out of 92 defendants are Somali Americans. Governor Walz's administration has been actively seeking more legislative power to enforce stringent oversight and has initiated steps to audit high-risk program payments.