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 and public spending.
Viral Allegations and Immediate Federal Response
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 amassed 2.5 million views, sending shockwaves through political circles.
The Trump administration responded within days. On Tuesday, it announced the freezing of $185 million in child care funds to Minnesota and demanded a comprehensive audit of fraud within government programmes. Former President Donald Trump branded Minnesota a "hub of fraudulent money laundering activity," while FBI Director Kash Patel stated on X that this was "just the tip of a very large iceberg."
A Pattern of Large-Scale Fraud Investigations
This latest allegation is part of a broader pattern of scandals in the state. Federal prosecutors are already investigating 14 Medicaid-funded programmes in Minnesota over an alleged $9 billion COVID-era fraud. To date, federal charges have been filed against 98 people in the state, with at least 60 convictions.
Joseph H. Thompson, the lead prosecutor, described discovering "staggering, industrial-scale fraud" in Minnesota's safety-net programmes. These schemes, which prosecutors say were conducted mainly by members of the Somali community, targeted initiatives for feeding children during the pandemic, supporting minors with autism, and aiding those at risk of homelessness.
In one major case, 57 people were convicted for diverting $300 million from the 'Feeding Our Future' programme—meals that were billed for but never existed, constituting the nation's costliest Covid-era scam.
Political Fallout and Community Tensions
The scandal has become intensely politicised. Republican figures have accused Democratic Governor Tim Walz of turning a blind eye to criminal activity to avoid alienating the immigrant community, a charge he denies. The state is home to the largest Somali immigrant population in the US, estimated at around 80,000.
Vice President JD Vance posted on X, "What's happening in Minnesota is a microcosm of the immigration fraud in our system," accusing politicians and "welfare cheats" of stealing from Minnesotans. Dr. Oz, Administrator for the Centres for Medicare and Medicaid Services, threatened to cut federal funding, alleging a cycle where "Minnesota politicians get elected with Somali votes and keep the money flowing."
The Trump administration has used the scandal to justify a crackdown on illegal immigration in Minnesota, with Immigration and Customs Enforcement (ICE) agents conducting raids. President Trump has made derogatory comments about Somalia, stating, "They contribute nothing... I don’t want them in our country," and ended Temporary Protected Status for Somalis.
Somali-American community leaders have expressed fear and anger. Minneapolis City Council member Jamal Osman told CBS News, "Anyone who looks like me [is] scared right now... an entire community should not be blamed based on what some individuals did." Democratic lawmaker Zaynab Mohamed accused Trump of "scapegoating a tiny piece of the population" to purge people like her from the country.
As Homeland Security agents descend on Minnesota for what DHS Secretary Kristi Noem called a "massive investigation," the fallout from this viral video continues to reshape policy, stoke division, and place an entire community under a harsh national spotlight.
