The Trump administration is coming down hard on Somali immigrant sponsors over billions stolen through welfare scams. Health and Human Services Deputy Secretary Jim O’Neill has fired off at least ten stern warning letters demanding repayment after massive fraud uncovered in taxpayer-funded benefits.
Billions Bled From Taxpayers in Feeding Our Future Scandal
The explosive fraud involves at least 78 charged individuals linked to the infamous Feeding Our Future scandal, which drained $453 million from federal child nutrition funds with meals that were never served. On top of that, $248 million vanished through bogus Medicaid housing stabilisation claims targeting migrants.
Even more shocking: $700 million in autism payouts surged after children—mostly Somali—were falsely diagnosed to claim Medicaid benefits. Kickbacks were allegedly handed to parents, with shady new clinics driving the racket by recruiting kids for fake diagnoses.
Trump Slams Minnesota as Fraud Hub
President Trump slammed Minnesota as a “hub of fraudulent money laundering activity” and demanded criminals be booted from the Somali community. He recently cut Temporary Protected Status for Somali immigrants, bluntly saying: “Their country stinks, and we don’t want them in our country.”
Meanwhile, Congresswoman Ilhan Omar’s ties sparked controversy after she was pictured with Abdul Dahir Ibrahim, one of the suspects now in ICE custody. Minnesota Governor Tim Walz faces heat for allegedly turning a blind eye to the scandal for political gain.
How the Fraud Worked
- Fake paperwork created to claim funds for non-existent meal sites
- Falsified meal counts and fake site employees recruited
- Stolen cash splurged on luxury cars, property, and travel
- Medical providers faked autism diagnoses to rake in Medicaid dollars
- Parents bribed with kickbacks to enrol kids in bogus programmes
- False Medicaid housing claims siphoned funds away from migrants
Federal Action Targets Sponsors
O’Neill’s letters warn immigrant sponsors that they agreed to support newcomers financially to stop them from depending on public welfare. Now, sponsors face demands for repayment and possible criminal charges if they fail to comply. The Trump administration wants stolen taxpayer money back — and it’s ready to sue to get it.
