The U.S. House Judiciary Subcommittee on Crime and Federal Government Surveillance today heard from witnesses on the ongoing Minnesota fraud scandal.
Republicans and Democrats on the committee sparred over what Democrats consider the politicization of the fraud story, which has dominated headlines in Minnesota and beyond.
“Minnesota has lost billions of dollars in state-administered and federally-funded programs due to organized fraud,” said U.S. Rep. Andy Biggs, R-Ariona and chair of the committee. “Fraud networks operating in Minnesota dating back more than a decade have submitted over $9 billion . . . in false claims.”
Witnesses at the hearing included Nick Shirley, a YouTuber and content creator, whose December reporting contributed to launching the story on the national stage.
“I’m here today to speak on behalf of all hard-working, law-abiding, tax-paying citizens here inside of the United States,” Shirley said during his testimony. “We, the people, have had enough of our hard-earned money going towards fraudsters as if it’s no big deal.”
The firestorm first broke about the Minneapolis fraud cases following the release of reports in late November which alleged that millions of taxpayer dollars had been fraudulently stolen from the Minnesota welfare system and then sent to the Somali-based terror group Al-Shabaab.
That was according to original reporting from Chris Rufo and Ryan Thorpe that was published in City Journal. It detailed how, throughout the fall, the then-acting U.S. Attorney for the District of Minnesota Joe Thompson, was investigating several different cases of fraud in the state. At that time, Thompson called it a “crisis.”
Much of that attention has been focused on reports of fraud among the city’s significant Somalian population.
Since the story first broke, there have been far-reaching ramifications. Actions from the Trump administration include:
• A surge of federal agents to the Twin Cities area
• Minnesota Gov. Tim Walz and others subpoenaed by the U.S. Department of Justice
• Funding cut to child care assistance programs
• Protected status ended for Somalis in the U.S.
The surge of federal agents, which included officials from U.S. Immigration and Customs Enforcement, has led to widespread tension and protests throughout the city-especially in the wake of an ICE officer killing Renee Nicole Good.
Democrats on the committee defended Minnesota Democrats and accused President Donald Trump of having a double standard when it comes to addressing fraud.
“Minnesota lawmakers have also taken steps to reduce fraud in their state, strengthening the state’s ability to stop potential fraud sooner and improving investigations to hold those scammers accountable. President Trump has taken a very different approach to fraud,” said U.S. Rep. Lucy McBath, D-Georgia and ranking member on the committee. “We know this hearing is not really about fraud. It is about trust. The Trump administration does not want you to trust these programs, because if you don’t trust them, they’re easier to destroy.”
Both Democrats and Republicans on the committee acknowledged that fraud is widespread throughout government welfare programs.
“This is not just a Minnesota issue, but it just happens to be at the forefront of why we’re here today,” said Biggs.
U.S. Rep. Jamie Raskin, D-Maryland, said that fraud is a part of governments everywhere.
“Fraud is endemic in government,” he said. “All over the world, there are fraudsters attacking our public institutions, trying to undermine them and rip them off.”
He argued that the federal fraud investigations in Minnesota are just a “pretext” for surging federal agents to the Twin Cities.
“Fraud is not headquartered in one state, for one municipality, much less one ethnic, racial or religious community,” Raskin said. “But, President Trump couldn’t resist the temptation to use fraud in Minnesota as an occasion to mobilize the power of the federal government to bully and intimidate first and second generation Somali Americans who live in that state.”
