Minnesota authorities have suspended payments to 14 programs within the state's Medicaid system as of October 31, 2025, due to ongoing investigations into allegations of fraud. One of the implicated providers, Ultimate Home Health Services LLC, owned by Othman Mohamed, reportedly billed the state for services that were never rendered, contributing to the death of at least one individual in need of care.

The situation has escalated to the point where Minnesota taxpayers are now linked to funding the Somali militant group Al-Shabaab, as indicated by claims surrounding fraudulent activities in various state programs. A recent court ruling dismissed a jury's guilty verdict against Abdifatha Yusuf and his wife, who were accused of embezzling $7.2 million from state funds.

Despite legislative measures allowing the Minnesota Department of Human Services (DHS) to disclose information about suspected fraudulent activities, the department has often withheld records related to these investigations. This lack of transparency has raised questions about the state's commitment to addressing fraud effectively.

More than 400 employees of the Minnesota DHS have publicly accused Governor Tim Walz of neglecting to act on widespread fraud warnings and retaliating against whistleblowers. The Minnesota DHS Employees account, which claims to represent over 480 current staff members, stated on social media that Walz is '100% responsible for massive fraud in Minnesota.' They expressed that they had informed Walz about fraud early on, seeking collaboration to address the issue, but instead faced retaliation, including monitoring and threats aimed at discrediting reports of fraud.

These allegations arise as federal prosecutors investigate one of the largest COVID-era fraud cases in the United States. The Justice Department recently announced new charges against the 78th defendant in the Feeding Our Future fraud scheme, which is said to involve over $250 million in misappropriated funds from a federally-funded child nutrition program, resulting in more than 50 convictions. Many of those charged are reportedly from Minnesota's Somali community.

Governor Walz has acknowledged that his administration may have been overly generous in distributing funds during the COVID-19 pandemic, which may have created opportunities for fraudulent activities. In response to the allegations, he has announced the formation of a new task force aimed at addressing fraud and has proposed the use of artificial intelligence to detect suspicious billing practices.

Critics have pointed out that the ongoing fraud under Walz's administration raises questions about accountability and governance. The New York Times has reported on the fraud, indicating that the issue has reached a level that cannot be dismissed as mere political spin. Taxpayers in Minnesota are reportedly feeling the financial impact of these alleged fraudulent activities, leading to concerns about the effectiveness of state oversight during Walz's administration.

The political context includes President Donald Trump's decision to terminate Temporary Protected Status (TPS) for Somalis in Minnesota, citing concerns over fraud as a justification. This action has prompted objections from local officials and community leaders, who argue for the protection of vulnerable populations affected by such policies. The City of Minneapolis has offered legal assistance to those impacted by the TPS termination, emphasizing support for the Somali community.

As the investigation continues, the implications of these allegations extend beyond the political landscape, highlighting the need for transparency and accountability in government operations, particularly in programs designed to support marginalized populations.