The Trump administration just dropped the hammer on what may be the largest welfare fraud and terrorism funding scheme in American history. Treasury Secretary Scott Bessent announced enhanced federal investigations targeting money service businesses across multiple states, exposing a network that sent $1.7 billion in American tax dollars straight into the hands of Somali terrorists.
Four money service businesses in Minneapolis and St. Paul are now under deep federal audit, with transaction tracing, IRS enforcement, and criminal referrals already underway. This isn't a warning shot—it's the opening phase of a complete dismantling operation that has blue state governors in full panic mode.
Senator Cruz Confirms the Unthinkable
Senator Ted Cruz dropped a bombshell that confirms what many suspected but few dared say out loud: Minnesota taxpayers became the single largest funding source for Al-Shabaab, the radical Islamic terror group operating in Somalia. "Hundreds of millions of dollars flowed through fraudulent networks right under the nose of Governor Tim Walz," Cruz revealed.
The money was supposed to help children in need. Instead, it bought AK-47s and funded terrorism overseas. Cruz is chairing a Senate Judiciary hearing on January 28th where names will be named and bank records will be subpoenaed.
"The American people will finally see where their money went, and they're going to be outraged," Cruz stated.
Blue State Governors Running Scared
The investigation is rapidly expanding beyond Minnesota. Treasury confirmed the same investigative framework is being deployed to California, Illinois, and New York. Ghost daycares, fake nonprofits, and welfare fraud mills—it's all on the table now.
When news of the investigation broke, Governor Gavin Newsom immediately issued a directive to lock down public access to state records. What are they hiding? Private investigators in California have already found ghost daycares with zero children present despite dozens being enrolled on paper.
The money flows through something called the Hawala network—an informal hand-to-hand cash system that bypasses banks entirely. Al-Shabaab takes a cut of everything that moves through this network, meaning American welfare dollars are directly funding Islamic terrorists.
Trump Administration Cuts Off the Financial Oxygen
Treasury Secretary Bessent announced that anyone on public assistance will now be required to check a box before wiring money overseas. If you're receiving welfare and sending cash abroad, you're committing a federal crime.
Florida is leading the charge with new legislation that would ban illegal aliens from sending remittances out of the country entirely. No bank accounts, no loans, no licenses—if you're in Florida illegally, the financial spigot gets shut off completely.
Governor Tim Walz is the canary in the coal mine. What's happening to him will happen to Newsom, Pritzker, and Hochul next. They all looked the other way while American tax dollars funded terrorism. Now President Trump's forensic audits are coming for all of them.