Hearings to examine fraud in Minnesota

Benefits Fraud and Improper PaymentsSenate Judiciary Subcommittee on Border Security and Immigration · 2026-02-10 · 119th Congress
The Senate Judiciary Subcommittee on Border Security and Immigration held this hearing, titled "Somali Fraud in Minnesota — The Tip of the Iceberg," to examine benefit and immigration fraud tied to Minnesota's Somali community, following DOJ prosecutions of childcare-fraud schemes estimated at $9 billion or more in federal losses [0:22:13]. Begins at 0:21:34
Transcript
Highlights

Title

Senate Judiciary hearing examines Somali fraud allegations in Minnesota

Purpose

The Senate Judiciary Subcommittee on Border Security and Immigration held this hearing, titled "Somali Fraud in Minnesota — The Tip of the Iceberg," to examine benefit and immigration fraud tied to Minnesota's Somali community, following DOJ prosecutions of childcare-fraud schemes estimated at $9 billion or more in federal losses0:22:05. Majority witnesses focused on immigration vetting gaps and welfare fraud, while minority witnesses and Democratic senators argued the hearing scapegoated an entire ethnic community and diverted attention from due-process and civil-rights concerns raised by immigration enforcement in Minneapolis. Begins at0:21:34

Who spoke

Chair John Cornyn (R-TX)0:21:34: Opened by citing 98 defendants charged and 64 convicted in Minnesota fraud cases0:23:04, previewed his forthcoming "Stop Somali Currency Airport Smuggling Fraud Act" targeting cash couriers0:27:36, and later pressed witnesses on GAO fraud estimates and USCIS vetting policy1:23:592:21:12.

Sen. Alex Padilla (D-CA), Ranking Member0:34:15: Argued the hearing scapegoats Somali Americans using an "old playbook" seen against Irish, Italian, and Chinese immigrants historically0:36:40, cited USSC data that noncitizens were about 6% of benefit fraud convictions in 20240:39:36, and challenged GAO on whether Afrikaner refugee processing meets the same fraud-risk standards1:34:00.

Ms. Rebecca Gambler, GAO0:48:53: Testified GAO found USCIS lacked a strategic, risk-based antifraud approach and had not regularly assessed fraud risk0:50:20; said DHS granted parole to about 774,000 noncitizens under CHNV, Uniting for Ukraine, and Family Reunification Parole, with widespread fraud indicators including deceased individuals' information0:51:310:52:28; confirmed GAO has not reviewed the Afrikaner refugee process or the "gold card" program1:34:172:28:57.

Mr. Simon Hankinson, Heritage Foundation0:53:45: Said a DOJ review found fraud or national-security concerns in 44% of Minnesota immigration benefit cases0:54:15; described the "0-0 rule" — no foreign record means no way to verify an applicant's background — and ranked Somalia 192nd of 193 countries on corruption0:55:030:55:33.

Mr. Phillip Linderman, Center for Immigration Studies0:58:53: Recommended holding host governments accountable for citizens who submit fraudulent visa documents and making State Department fraud summaries part of bilateral diplomacy1:00:451:02:11.

Mr. Matt O'Brien, FAIR1:03:21: Said FTC-reported fraud losses rose 25% to over $12.5 billion in 2023–20241:03:21 and estimated the net fiscal cost of illegal immigration at roughly $150 billion annually1:06:05; argued sanctuary jurisdictions become magnets for fraud since undocumented residents must commit fraud to work or drive2:05:47.

Sen. Dick Durbin (D-IL), Ranking Member1:08:19: Cited fatal ICE shootings in Minneapolis and a detention death ruled a homicide1:08:19; contrasted rapid Afrikaner refugee processing with detained, highly-vetted Somali refugees1:09:55; later highlighted the Chicago shooting of U.S. citizen Marimar Martinez, whose charges were later dropped2:11:22.

Mr. David Bier, Cato Institute1:13:00: Said Cato research shows immigrants reduced the federal deficit by $11.5 trillion over 30 years, including about $140 billion in Minnesota1:13:27; said DHS was "sitting on" roughly 300,000 pending applications from nationals of about 90 countries under USCIS director Joseph Edlow1:40:00; said only 5% of ICE detainees have violent convictions and 73% carry no assigned threat level2:10:092:11:01.

Mr. Eric Schwartz, University of Minnesota1:18:35: Described documented civil-rights abuses by ICE/CBP in Minneapolis including unlawful killings and disregard of court orders1:19:07; said more than 50 people have pled guilty or been convicted in the "Feeding Our Future" fraud case under the prior U.S. Attorney1:22:34; said Somali economic presence in America is a net benefit2:20:13.

Sen. Tommy Kennedy — *(labeled Sen. Kennedy in transcript)*1:35:28: Questioned Schwartz on whether fraud perpetrators should be prosecuted regardless of ethnicity1:36:10 and pressed Bier on the DHS application backlog affecting roughly 300,000 people abroad1:40:00.

Sen. Amy Klobuchar (D-MN)1:42:36: Said her office recommended U.S. Attorneys who led Minnesota fraud prosecutions, including Joe Thompson, and noted 14 assistant U.S. attorneys handling fraud cases resigned amid pressure over an ICE-related fatality investigation1:43:191:43:42; cited a $10–20 million weekly cost to Minneapolis from the federal surge1:46:01.

Sen. Ashley Moody (R-FL)1:49:02: Cited estimates that up to 20 million people entered under the prior administration largely unvetted1:49:18 and had O'Brien confirm illegal immigration's $150.7 billion annual fiscal cost exceeds Florida's state budget1:52:12.

Sen. Mazie Hirono (D-HI)1:54:38: Had Bier confirm 95% of government benefits fraud losses are attributable to U.S. citizens, not noncitizens1:55:33; asked Schwartz whether the hearing's portrayal of Somalis as fraud-prone was fair, which he called untrue1:57:531:58:01.

Sen. Katie Britt (R-AL)2:01:02: Cited a DHS IG report that the State Department waived interviews and fingerprinting for over 8 million of 15 million nonimmigrant visa recipients under the Biden-Harris administration2:01:01; argued sanctuary-city policies enable fraud2:05:03.

Sen. Ted Cruz (R-TX)2:12:16: Named victims of crimes by undocumented immigrants (Jocelyn Nungaray, Laken Riley, Kate Steinle)2:12:16; presented data claiming 81% of Somali households in Minnesota receive some welfare versus 21% of non-Somali households2:17:27; pressed each witness on whether Somali resettlement is "helping or hurting America"2:17:42.

Key moments

Cornyn stated DOJ has charged 98 defendants (85 of Somali descent), convicted 64, issued over 1,750 subpoenas, and executed more than 130 search warrants in the Minnesota fraud probe0:23:04.

Cornyn announced plans to introduce the "Stop Somali Currency Airport Smuggling Fraud Act," requiring noncitizens moving over $10,000 in cash out of the country to disclose its source 72 hours in advance, after DHS said $700 million has left via Minneapolis airport in suitcases over two years0:26:120:27:36.

Padilla countered with USSC data showing noncitizens accounted for just over 6% of benefit fraud convictions in 2024, and cited an American Immigration Council finding that undocumented immigrants are about half as likely to be arrested for violent and property crimes0:39:110:39:36.

Gambler testified GAO's review found "widespread" fraud indicators in the CHNV and Uniting for Ukraine parole processes, including supporter applications using deceased individuals' identities, leading DHS to terminate CHNV in March 20250:52:280:52:53.

Durbin and Bier sparred over ICE tactics: Bier said only 5% of ICE detainees have violent convictions and 73% are assigned no threat level at all, calling the operation "a population purge" rather than public safety2:10:092:11:01; Durbin cited the shooting of Chicago U.S. citizen Marimar Martinez, whose charges were dropped eight weeks later2:11:22.

Kennedy questioned Bier about roughly 300,000 pending immigration applications abroad (and double that in the U.S.) that Bier said USCIS Director Joseph Edlow is refusing to process, under Secretary Noem1:40:001:40:43.

Cruz displayed a chart claiming 81% of Somali households in Minnesota receive some welfare versus 21% of non-Somali households, and 73% are enrolled in Medicaid versus 18%2:17:27; Schwartz responded that Somali economic presence "far outweighs" costs and that the fraud does not justify targeting the community2:19:542:20:13.

Bier and O'Brien clashed over economic framing: Bier cited Cato's estimate that immigrants reduced deficits by $1.7 trillion nationwide over 30 years1:47:12, while O'Brien cited a $150 billion annual net fiscal cost of illegal immigration, larger than Florida's state budget1:06:051:52:54.

Klobuchar said 14 assistant U.S. attorneys who had been prosecuting Minnesota fraud cases resigned after being asked to investigate a fatal shooting involving an ICE/Border Patrol agent that they viewed as unethical1:43:421:44:11.

Padilla noted that asylum cases for hundreds of Somali immigrants in Minnesota, Illinois, and Nebraska were abruptly accelerated to be heard within a month, which he characterized as targeting an ethnic group for fast-tracked deportation0:38:18.

Metadata

CommitteeSenate Judiciary Subcommittee on Border Security and Immigration
Chamber / CongressSenate · 119th Congress
Date2026-02-10
TypeMeeting
Witnesses
(none listed in event metadata)
Videosenate-isvp
Transcript416 caption blocks · 17,450 words · 2:34:08 runtime
EventCongress.gov 337967