Treasury investigating tax fraud allegations in Minnesota, Bessent says

The U.S. Treasury Department is investigating allegations that tax dollars from Minnesota may have been diverted to the Al-Shabaab militant group in Somalia, Treasury Secretary Scott Bessent said on Monday. Bessent announced the investigation on X days after U.S. President Donald Trump called Minnesota a "hub of fraudulent money laundering activity" under Democratic Governor Tim Walz, an apparent response to unverified media reports shared by several Republican lawmakers that Al-Shabaab had benefited from fraud committed in Minnesota.

Walz's office did not immediately respond to a request for comment from Reuters.