WASHINGTON — December 7, 2025.
A heated split-screen confrontation erupted on CBS’s Face the Nation Sunday, as Treasury Secretary Scott Bessent accused Rep. Ilhan Omar (D-MN) of “gaslighting the American people” about Minnesota’s massive COVID-era child-nutrition fraud scandal — a scheme federal prosecutors have called the largest pandemic fraud in U.S. history.

The Treasury Department is now investigating whether stolen Minnesota welfare funds — more than $250 million, and possibly as much as $1 billion — were funneled overseas through informal money-transfer networks, including to Somalia and parts of the Middle East. Agents are examining whether any portion may have reached al-Shabaab, the al-Qaeda-linked terrorist organization that extorts remittances in some Somali regions.

No terrorism link has been confirmed. But the political battle is already raging.

Bessent: Omar “gaslighting the American people,” fraud “massive and shocking”

Appearing first, Bessent delivered a blunt assessment of the Minnesota scandal:

“Rep. Omar tried to downplay it — she was gaslighting the American people,”
— Scott Bessent, Treasury Secretary, Face the Nation

He argued the fraud — known as Feeding Our Future — was not uncovered by Minnesota authorities but by IRS Criminal Investigations, who “tracked the money” after state officials failed to stop it.

Bessent highlighted:

$250M+ confirmed stolen, with total losses possibly nearing $1 billion across related Medicaid programs.

At least 87 defendants charged, many tied to Somali community nonprofits.

Stolen funds allegedly spent on luxury cars, overseas real estate, fake childcare centers, and shell nonprofits.

He added a pointed cultural critique:

“When you come to this country, you learn which side of the road to drive on. You learn to stop at stop signs. And you learn not to defraud the American people.”

Bessent also noted that fraudsters “donated to Omar, Gov. Tim Walz, and Attorney General Keith Ellison,” characterizing it as part of a broader failure of state oversight.

Omar fires back: “I don’t understand his claims. Donations were returned years ago.”

In her own segment, Rep. Omar rejected the idea that she minimized wrongdoing:

“I don’t understand what he is referring to… Any improper donations were returned years ago.”

She said she was among the first Minnesota lawmakers to urge federal investigation in 2022 and insisted the Somali-American community should not be smeared:

“These are Americans. The idea they are ‘garbage’ — as the president said — is completely disgusting.”

Omar said she was “pretty confident” stolen funds did not reach al-Shabaab, and if they did:

“That would be a failure of the FBI, not the Somali community.”

She called the Trump administration’s rhetoric — including termination of Somali TPS status and increased ICE raids — “an unhealthy and creepy obsession” with Somalis and herself.

Background: Minnesota’s Massive Pandemic Fraud

The scandal centers around pandemic-expanded USDA child-nutrition programs administered through the Minnesota Department of Education — particularly the nonprofit Feeding Our Future.

Key facts:

Aspect
Details

Money stolen
$250M+ confirmed; total Minnesota welfare fraud may exceed $1B across programs

Primary scheme
Fake meal sites, forged invoices, nonexistent daycares billing for millions of meals never served

Defendants
~87 charged; 79 reportedly of Somali descent

Federal timeline
FBI raids in 2022 → dozens of charges 2023–2025

Overseas money flow
IRS traced wires to Somalia, Dubai, Turkey; terrorism ties unproven and under investigation

State oversight failures
MN officials delayed action amid lawsuits accusing them of “racism” for raising concerns

Even Minnesota’s own legislative auditor concluded state agencies suffered from a “chilling effect” — hesitating to scrutinize Somali-led nonprofits for fear of discrimination accusations.

Political Overlap: Walz, Ellison, and Omar under pressure

The fraud’s scale, the number of Somali-linked defendants, and the state’s oversight failures have collided with a charged national moment.

President Trump last week called Somalis “garbage” and said Minnesota was a “hub of money laundering.”

ICE surged into Minneapolis–St. Paul to conduct deportation raids, targeting Somali nationals with old removal orders.

Treasury Secretary Bessent and CMS Administrator Dr. Mehmet Oz are now publicly warning Minnesota to fix Medicaid fraud or risk losing federal dollars.

Omar responded:

“This is dangerous. This level of dehumanization can lead to violence.”

Reactions: A partisan firestorm

Conservatives

Hailed Bessent for “exposing the truth,” calling Omar’s comments “spin” and “deflection.”

Shared clips of her interview with captions like “She knew,” “Gaslighter-in-chief,” and “Remove her from Congress.”

Liberals

Accused Bessent of smearing an entire diaspora and overstating unproven terrorism claims.

Noted Omar’s early calls for investigation and federal oversight.

On X (Twitter)

The story trended nationally:

#Bessent

#MinnesotaFraud

#OmarFaceTheNation

Semantic analysis shows:

~70% conservative-leaning criticism

~20% support for Omar / warnings against xenophobia

~10% neutral policy commentary

What comes next?

Bessent said Treasury’s analysis of overseas money flows — including potential al-Shabaab involvement — will become public “in the coming weeks.”

Simultaneously:

House Oversight Chair James Comer is pursuing subpoenas tied to Minnesota fraud.

ICE operations in Minneapolis are intensifying.

CMS has threatened to cut Minnesota’s Medicaid funding unless the state reforms its programs within 60 days.

Federal investigators say more indictments are likely in early 2026.

Bottom Line

Sunday’s clash between Bessent and Omar crystallizes a deepening national divide:

Republicans portray Minnesota’s fraud as a symbol of Democratic mismanagement, lax immigration controls, and identity-politics paralysis.

Democrats warn Republicans are using the scandal to demonize immigrants, escalate racial tensions, and justify mass deportations.

The fraud is real. The terrorism link is unproven.
But the political consequences — for Minnesota, for Omar, and for national immigration policy — could be enormous.