A viral video accusing Minnesota's Somali community of orchestrating a multimillion-dollar fraud scheme has ignited a political firestorm across the United States, prompting immediate federal action and fuelling a heated national debate on immigration.
Explosive Allegations and Immediate Fallout
On Friday, right-wing influencer Nick Shirley posted a video on YouTube claiming that daycare centres operated by Somali residents in Minneapolis had committed fraud worth up to $100 million. The video rapidly gained 2.5 million views, sending shockwaves through political circles.
The Trump administration responded swiftly. By Tuesday, it had announced a freeze on $185 million in federal childcare funds destined for Minnesota and demanded a comprehensive audit of fraud within government programmes. Former President Donald Trump branded the state a 'hub of fraudulent money laundering activity', while FBI Director Kash Patel stated on social media platform X that this was 'just the tip of a very large iceberg'.
A Pattern of Fraud and Political Accusations
This latest allegation is part of a broader pattern of scandals in Minnesota, which prosecutors say have cost taxpayers billions. Federal investigations are already underway into 14 Medicaid-funded programmes in the state over an alleged $9 billion COVID-era fraud.
Prosecutor Joseph H. Thompson described discovering 'staggering, industrial-scale fraud' in Minnesota's safety-net programmes. These schemes, largely targeting initiatives for feeding children during the pandemic, supporting minors with autism, and aiding the homeless, involved billing for services never rendered.
To date, 98 people have been charged federally in Minnesota, with at least 60 convictions. Attorney General Pam Bondi noted that 85 of the defendants are of Somali descent. This has led Republican figures, including Vice President JD Vance, to frame the issue as a 'microcosm of the immigration fraud in our system'.
Democratic Governor Tim Walz has faced fierce criticism from conservatives, accused of turning a blind eye to criminal activity to avoid alienating the immigrant community—an allegation he firmly denies.
Immigration Raids and Community Fear
The fraud revelations have directly influenced immigration policy. The Trump administration has used the scandal to justify a crackdown on illegal immigration in Minnesota, home to the largest Somali population in the US. Immigration and Customs Enforcement (ICE) agents have been deployed, conducting raids that have sown fear within the community.
Somali-American residents report increased ICE presence, with people being 'plucked off of the streets' and questioned about their residency. Minneapolis City Council member Jamal Osman expressed the community's anxiety, stating, 'Anyone who looks like me [is] scared right now'.
The political rhetoric has intensified. President Trump has made derogatory comments about Somalia, ended Temporary Protected Status for Somalis, and Congressman Tom Emmer called for the 'denaturalisation and deportation' of every Somali engaged in fraud in Minnesota.
Democratic State Representative Zaynab Mohamed, a Somali immigrant, condemned the administration's actions, arguing, 'This is not about crime. It's not about safety. This is about purging people like me from this country.'
Ongoing Investigations and National Repercussions
As Homeland Security agents descend on Minnesota for what Secretary Kristi Noem termed a 'massive investigation', the scope continues to widen. Prosecutor Thompson revealed that new suspects include individuals from Philadelphia engaged in 'fraud tourism', travelling to Minnesota specifically because they saw it as a low-risk environment for defrauding taxpayers.
The scandal has also ensnared Minnesota Congresswoman Ilhan Omar, who faces scrutiny after her disclosed assets appeared to skyrocket from $1,000 to nearly $30 million in one year, prompting a conservative watchdog group to examine her finances.
With federal health officials freezing childcare payments nationwide and vowing to 'find the fraud', the ramifications of Minnesota's scandal are being felt across the United States, intertwining issues of public funds, immigration, and intense political partisanship.
