A years-long scheme to defraud $1.5 billion from federally subsidized social services is fueling a wave of xenophobia against Minnesotans of Somali descent. The real culprit is Uncle Sam.
In September, the Justice Department announced that eight defendants, six of whom are of Somali descent, had been charged for their participation "in a massive housing stabilization fraud scheme." The conspiracy consisted of acquiring the information of those eligible for Minnesota's Housing Stabilization Services (HSS) program—the elderly, disabled, and drug-addled—to submit fake reimbursement claims for nonexistent housing support services. According to the Justice Department, the program was projected to cost $2.6 million per year in 2020, but paid out $21 million in 2021, $42 million in 2022, $74 million in 2023, $104 million in 2024, and $61 million from January to June of 2025, likely due, in large part, to rampant fraud.
