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LSS South Dakota leader refutes funding allegations made by Musk, Flynn

Elon Musk, Chief Executive Officer of SpaceX and Tesla and owner of Twitter, gestures as he attends the Viva Technology conference dedicated to innovation and startups at the Porte de Versailles exhibition centre in Paris, France, June 16, 2023.
Gonzalo Fuentes/REUTERS
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Elon Musk, Chief Executive Officer of SpaceX and Tesla and owner of Twitter, gestures as he attends the Viva Technology conference dedicated to innovation and startups at the Porte de Versailles exhibition centre in Paris, France, June 16, 2023.

Lutheran Social Services of South Dakota is pushing back against high-profile social media attacks questioning the organization’s funding.

The posts came from Mike Flynn, a former military advisor to President Donald Trump, and billionaire Elon Musk, who is leading Trump’s efforts to cut down on federal bureaucracy.

Flynn accused Lutheran Social Services of money laundering, specifically pointing to federal funds used for immigration services. The comment, made on the social media platform X, came amid a flurry of posts over the weekend targeting faith-based social service organizations.

Musk, who owns X, responded, saying the Department of Government Efficiency, or DOGE, is shutting down these “illegal payments.” DOGE, which is led by Musk, is in the midst of a frenetic effort to reduce the size of the federal government.

Neither provided evidence of illicit activity. Flynn shared a screenshot of federal Department of Health grants, including two to LSS South Dakota. The information shared in the screenshot is publicly available.

LSS South Dakota President Rebecca Kiesow-Knudsen released a statement calling the accusations “completely baseless and inaccurate.”

"LSS of South Dakota is a nonprofit social ministry organization that has provided essential services to children, youth, and families across the state for over 100 years," Kiesow-Knudsen said. "Our work is carried out through legally awarded contracts and grants with local, state, and federal agencies that have entrusted us with these essential services. We are fully licensed by the state of South Dakota and accredited by the Council on Accreditation, maintaining the highest ethical and professional standards."

The statement also shared some of the services provided by LSS, including behavioral health care, mentoring, adoption services, psychiatric residential treatment for youth and refugee resettlement.

"We are deeply concerned by any effort to misrepresent our work and jeopardize the funding that enables us to fulfill our mission," Kiesow-Knudsen said.

Josh Chilson is the news director at South Dakota Public Broadcasting. A Florence, S.D. native, Josh graduated with a journalism degree from South Dakota State University. He has worked as a newspaper reporter and videographer, and most recently as managing editor for Dakota News Now. Josh is based out of SDPB's Sioux Falls studio.