A significant increase in federal law enforcement activity is underway in Minnesota, prompted by explosive new allegations of fraud targeting day care centres operated by members of the Somali community. The move follows a viral video from a right-wing influencer claiming up to $100 million in fraud, which has drawn a swift and high-level response from Washington.
Federal Agencies Launch Major Investigation
This week, both Department of Homeland Security Secretary Kristi Noem and FBI Director Kash Patel announced a ramp-up of operations in the state. Noem stated on social media that officers were "conducting a massive investigation on childcare and other rampant fraud." Patel emphasized the intent is to "dismantle large-scale fraud schemes exploiting federal programs."
The catalyst was a video posted on Friday, December 12, 2025. State officials, including Tikki Brown, commissioner of the Minnesota Department of Children, Youth, and Families, confirmed they are taking the allegations seriously. The claims suggest widespread fraud within Minneapolis day care facilities run by Somali residents.
A History of High-Value Fraud Cases
Minnesota has been a focal point for federal fraud investigations for years, particularly involving programs like Medicaid. The most prominent case involves the non-profit Feeding Our Future, part of a massive $300 million pandemic fraud scheme. Prosecutors labelled it the largest COVID-19-related fraud scam in the United States.
Initially, 47 people were charged in 2022 under the Biden administration. That number has since grown to 78 defendants throughout the ongoing probe, with 57 convictions secured so far through guilty pleas or trial losses. A striking pattern has emerged: most of the defendants are of Somali descent.
Federal prosecutor Joe Thompson estimated over the summer that total losses from all fraud cases could surpass $1 billion. Earlier this month, a shocking allegation surfaced that half or more of the roughly $18 billion in federal funds sent to Minnesota for 14 programs since 2018 may have been stolen.
Political Repercussions and Community Impact
The fraud crackdown has become intensely political, intertwined with immigration rhetoric. Former President Donald Trump has explicitly linked immigration enforcement against Minnesota's Somali community to these fraud cases, once derogatorily labelling Minnesota Somalis as "garbage." The Minneapolis-St. Paul area is home to about 84,000 of the nation's 260,000 Somali residents, with the vast majority being U.S. citizens or naturalized citizens.
The issue is now a central theme in local politics. Minnesota Governor Tim Walz, the 2024 Democratic vice-presidential nominee, faces pressure as he seeks a third term in 2026. Walz has stated fraud will not be tolerated and promised cooperation with federal partners. He anticipates an audit due in late January will clarify the fraud's scope but acknowledged the $1 billion estimate could be accurate.
Meanwhile, Democratic U.S. Rep. Ilhan Omar, Minnesota's most prominent Somali American, has urged the public not to blame an entire community for the actions of a few. According to the U.S. Attorney's Office, in schemes targeting child nutrition, housing, and autism programs, 82 of the 92 defendants are Somali Americans.
The federal surge signals a prolonged and contentious chapter in Minnesota's ongoing struggle with large-scale fraud, ensuring this issue will remain at the forefront of legal and political debates for the foreseeable future.
