MINNEAPOLIS, MN — A massive federal investigation into the alleged fraudulent use of federal funding in Minnesota reached a fever pitch Tuesday morning as uniformed agents descended on businesses, daycares, and private residences across the Minneapolis-St. Paul metro area.
The multi-agency operation, which included the FBI, Department of Homeland Security (DHS), and Minnesota’s Bureau of Criminal Apprehension (BCA), executed a total of 22 federal search warrants. The raids mark a significant escalation in a long-standing probe that has already upended the state’s political landscape and heightened tensions within local communities.
Focus on Childcare and Autism Programs
While the full scope of the warrants remains under seal, several locations targeted in the raids were identified as childcare centers and businesses linked to state-funded programs.
- Targeted Sites: Uniformed agents were seen removing boxes of evidence and computer monitors from sites including Quality Learning Center, Metro Learning Center, and Mako Childcare Center.
- State Programs: The Minnesota Attorney General’s office confirmed that five sites are connected to a state program designed to assist children with Autism Spectrum Disorder (ASD).
- Medicaid Link: The state’s Medicaid fraud control unit assisted in the operation for businesses involving Medicaid funding.
A Political Firestorm
The raids come at a time of extreme political volatility in Minnesota. The ongoing fraud allegations—which Republicans claim the state ignored—forced Governor Tim Walz to drop his reelection campaign earlier this year.
On Tuesday, Walz welcomed the federal action, stating, “We catch criminals when state and federal agencies share information.” However, federal officials were quick to push back. Both DHS Secretary Markwayne Mullin and FBI Director Kash Patel criticized the Governor on social media, claiming the investigation only gained momentum due to the Trump administration’s intervention.
In his final State of the State speech Tuesday evening, Walz addressed the scandal directly:
“I’ve said the buck stops with me… Some of you will take that as an open invitation to play politics with every incident of fraud… But so be it.”
Community Under Pressure
The investigation has cast a long shadow over the Somali-American community in the Twin Cities. Many of the businesses targeted in this probe, as well as the previous Feeding Our Future investigation, are owned by individuals of Somali descent.
Mahamed Cali, owner of the Medina Mall where one raid occurred, expressed the community’s fear. He noted that when agents arrived, some tenants fled, mistakenly fearing an immigration raid.
“When an individual does something wrong, they should be punished but not the whole community,” Cali said. “Somali people should not be singled out.”
What We Know So Far:
- No Arrests Announced: As of Tuesday afternoon, federal agencies have not announced any formal arrests or charges directly stemming from today’s activity.
- Immigration Context: Despite the involvement of Homeland Security Investigations (HSI), federal officials clarified that Tuesday’s raids were not connected to immigration enforcement.
- Ongoing Probe: This operation follows the conviction of 65 people in the separate Feeding Our Future fraud case, which saw hundreds of millions of dollars stolen from federal food programs.
Stay with NewsBreak for real-time updates as more details are confirmed in this developing story.
What is your take, Minnesota? Is the state doing enough to oversee federal funds, or is the federal government overreaching? Sound off in the comments below.
