Minnesota's Big Money Mess: What's Really Going On?

The Small Business Administration (SBA) has frozen nearly 7,000 loans worth up to $400 million due to suspected fraud during the COVID-19 pandemic.

SBA's Investigation

• Kelly Loeffler, the SBA's administrator, revealed that the loans were given to individuals involved in suspicious activities.
• Those implicated will be barred from future SBA loans and may face repayment demands or legal consequences.
• Loeffler hinted that more states could be investigated.

Additional Scandals

• The Department of Health and Human Services has also frozen childcare payments.
• The FBI and Department of Homeland Security are probing further suspected fraud.
• The Biden administration has been investigating these issues for years, resulting in dozens of arrests and convictions.

The Largest Scam: Feeding Hungry Kids

• Over $250 million was stolen from a program meant to feed hungry children.
• 80+ people have been charged, with 60+ convictions.
• Most of those involved are U.S. citizens of Somali descent.

Political Fallout

• President Trump has frequently criticized Minnesota Governor Tim Walz, who ran against him in the 2024 election.
• Trump has made controversial remarks about the Somali community in Minnesota.
• The White House is considering revoking citizenship of those involved in the fraud.

Governor Walz's Response

• Walz is under intense pressure to combat fraud.
• He has enhanced state agency efforts to detect and prevent fraud.
• A statewide fraud prevention program has been launched, led by a former FBI agent.
• Republicans in Congress are demanding Walz testify about the scandal in February.