Billion-dollar welfare fraud scandal rocks Minnesota and fuels U.S. political clash
A major U.S. welfare fraud scandal has erupted in Minnesota, where over $1 billion in federal aid was allegedly stolen through fake childcare programs, triggering FBI investigations and political backlash involving immigration and Democratic leadership.
“They received millions of dollars, but where are the children at this day care center (daytime care facility)?” (YouTuber Nick Shirley)
A so-called “welfare fraud” scandal, in which astronomical sums of federal government support funds were embezzled through a welfare program in Minnesota, U.S., is shaking the American political scene. With the U.S. Department of the Treasury and the Federal Bureau of Investigation (FBI) launching investigations, estimates suggest the total damage could exceed 1 billion dollars (approximately 1.5 trillion Korean won). Minnesota, where Tim Walz—a former Democratic vice presidential candidate in the last election—serves as governor, hosts the largest Somali-American community in the U.S. The MAGA (Make America Great Again) camp, including U.S. President Donald Trump, has politicized the scandal, calling it a “microcosm of immigration fraud in our society” (J.D. Vance, Vice President). A narrative frames the diversion of federal funds to illegal immigrants and the consolidation of political dominance in exchange.
Earlier, the *New York Times* (NYT) reported suspicions that hundreds of millions of dollars were stolen through federal nutrition programs in Minnesota, stating, “Over 50 guilty verdicts have been handed down so far, and up to 1 billion dollars in taxes may have been stolen.” The controversy ignited through Nick Shirley, a conservative YouTuber with 1.19 million subscribers. A 40-minute investigative video Shirley uploaded on the 26th surpassed 1.5 million views in three days, with nearly 40,000 comments. It exposed a “ghost daycare center” with no trace of children receiving over 4 million dollars in state and federal support. Political clashes intensified afterward, with Tom Emmer, Republican House Majority Whip, criticizing, “A facility with no children received 4 million dollars. Governor Walz must explain this matter.” Senator Ted Cruz added, “Minnesota is terrible, but the situation is likely worse in Democratic strongholds like New York, California, and Illinois.”
Minnesota is a “blue state” with strong Democratic support, and Minneapolis was the epicenter of the 2020 George Floyd protests that shook Trump’s first term. It is also home to the largest Somali immigrant population in the U.S. Trump has long targeted these immigrants, calling them “garbage that contributes nothing” and warning in a cabinet meeting, “If we keep bringing garbage into our country, we will go down the wrong path.” While the Immigration and Customs Enforcement (ICE) conducted large-scale deportation operations and hinted at deploying state defense forces, the welfare scandal has been linked to “fraudulent benefits” by illegal immigrants. *News Nation* reported, “The majority of those convicted are Somali-Americans.” With Trump, who faces pressure just one year into his term due to high inflation, likely to revive the anti-immigration card that worked in the last election, welfare program abolition and “small government” reduction—traditionally appealing to conservative voters—are key themes.
Kash Patel, FBI director overseeing the welfare fraud scandal under Trump’s orders, stated, “The FBI has dismantled a fraud organization that stole 250 million dollars in federal food assistance funds for vulnerable children during the COVID-19 pandemic.” He added, “The investigation revealed large-scale money laundering through fake suppliers and shell companies linked to the ‘Feeding Our Future’ network.” Patel noted, “This case has resulted in 78 indictments and 57 guilty verdicts,” with many immigrants charged with fraud, money laundering, and conspiracy. Millions of dollars were also embezzled from housing stability and autism treatment programs. Patel emphasized that the current cases are “just the tip of the iceberg.” Elon Musk, former head of the Department of Government Efficiency (DOGE), claimed, “Radical leftists have long used fraudulent government programs to import and maintain millions of illegal immigrants to win elections, turn the U.S. into a one-party state, and destroy democracy.”
As the controversy over the scandal persists, backlash has reached Ilhan Omar, the first female Muslim Somali refugee elected to the U.S. House of Representatives. Omar, already a target of the MAGA camp, faces intensified criticism. Musk warned, “As you delve deeper into the welfare fraud scandal, you’ll be shocked by how your taxes are used and realize your vote becomes meaningless if things don’t change. The Somali-American voter bloc electing Omar is the clearest example.” Though Omar insists, “I will not be threatened or made a scapegoat,” the Democratic Party remains vigilant. Governor Walz, who gained national recognition last year as a vice presidential candidate, now faces a political crisis, with some predicting he may struggle to secure a third term as governor, let alone run in the 2028 presidential election.
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