House Republicans sought Wednesday to draw attention to an emerging scandal in Minnesota over alleged misuse of federal funds by Somali communities that could amount to $9 billion in fraud, accusing state Democratic leaders such as Gov. Tim Walz of looking the other way.
The House Oversight and Government Reform Committee held the hearing as the extent of the scandal continues to unfold, a combination of government waste and immigration concerns. The episode has become a focal point in conservative media and led in part to Walz announcing Monday that he won’t seek reelection as governor.
The Department of Homeland Security on Tuesday said its “largest DHS operation ever” was happening in Minnesota and noted that President Donald Trump and Homeland Security Secretary Kristi Noem “rallied DHS law enforcement personnel to keep Americans safe and ERADICATE fraud.”
Later Wednesday, reports and videos emerged of an immigration enforcement officer shooting into a car in Minneapolis, prompting responses on social media from Trump, DHS and other Trump administration officials.
House Oversight Chairman James R. Comer, R-Ky., faulted Walz and Minnesota Attorney General Keith Ellison for failing to act as instances of fraud became apparent. The Justice Department, Comer said, has charged 98 defendants in Minnesota fraud-related cases, 85 of whom are of Somali descent, and 64 have already been convicted.
One incident highlighted during the hearing was a scheme by Feeding Our Future services, which resulted in more than 50 convictions and $250 million in fraudulent expenses.
“Gov. Walz, Attorney General Ellison and Minnesota Democrats failed to act despite countless warnings,” Comer said. “They failed Minnesotans, and all Americans, handing millions of taxpayer dollars to fraudsters. They failed children and others in Minnesota.”
Comer said that in one particular instance, documentation was created after the fact for a total of $680,000 spent in federal funds, but the agency responsible couldn’t provide proof that any work was actually completed.
As the reports in Minnesota unfolded, the Trump administration announced Tuesday that it would halt $10 billion in grant funds for child care and family assistance programs in five states because of “serious concerns about widespread fraud.”
House Democrats largely called fraud unacceptable as a general matter, but also sought to highlight Trump’s use of the pardon power, and how he granted clemency to individuals convicted of multi-billion dollar fraud schemes.
California Rep. Robert Garcia, the top Democrat on the Oversight panel, said the decision to halt federal funds amid the scandal harms the underserved families who rely on that assistance.
“We want to talk about fraud: In Minnesota, which we’re talking about today, Donald Trump is removing child care funding for the entire state,” Garcia said. “That frozen funding provides child care for over 18,000 kids. These kids didn’t commit fraud, so I want to know why they should be punished.”
Republicans on the committee peppered witnesses with questions on whether Minnesota Democratic leaders turned the other way when evidence of fraud became apparent and on whether perpetrators were making political campaign contributions to Democrats.
Rep. Brandon Gill, R-Texas, had a series of questions on recipients of federal assistance, asking how much aid was going to native-born communities in Minnesota in contrast with Somali communities.
In one example on food stamps, Gill said 54 percent of Somali-headed households were taking aid, in contrast with 7 percent for native-born households.
Brendan Ballou, a Democratic witness during the hearing and a former special counsel for the Justice Department, pointed out that the majority of Somalis in the United States were born here.
Rep. Ro Khanna, D-Calif, said fraud “should not be a partisan issue,” calling for an audit of all 50 states to determine if fraud exists in federal funds.
“I want that money going for the health care, the child care and the education of the American people,” Khanna said. “It offends me if there is waste or fraud in any of our states.”
Sen. Ted Cruz, R-Texas, announced Wednesday that a Senate Judiciary subcommittee would hold a hearing on the Minnesota fraud allegations later this month entitled: “Somali Scammers: Fighting Fraud in Minnesota and Beyond.”
Meanwhile, video footage posted on social media of Wednesday’s shooting incident in Minneapolis show ICE officers approach a vehicle, the vehicle leaving the area and several shots being fired by an officer.
“A US citizen has apparently been shot by ICE agents in Minneapolis,” Sen. Tina Smith, D-Minn., posted on social media. “I’m gathering information, but the situation on the ground is volatile. ICE should leave now for everyone’s safety. Please be safe Minneapolis.”
DHS posted that ICE officers in Minneapolis “were conducting targeted operations when rioters began blocking ICE officers and one of these violent rioters weaponized her vehicle, attempting to run over our law enforcement officers in an attempt to kill them—an act of domestic terrorism.”
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