Minnesota Democrats Call for ICE Accountability Following $18 Billion Somali Fraud Case

Top Minnesota Democrats are calling on the federal government to reimburse the state for costs allegedly incurred during the Department of Homeland Security’s recent immigration enforcement operation, even as the state faces scrutiny over billions in taxpayer funds lost to fraud in social services programs.

Governor Tim Walz has publicly demanded federal compensation, stating, “The federal government needs to pay for what they broke here. There is going to be accountability on the things that happened, but one of the things is the incredible and immense costs that were borne by the people of this state.”

Minneapolis Mayor Jacob Frey has joined the governor’s call, estimating financial and economic costs to his city at $203 million. According to Frey, approximately 76,000 Minneapolis residents require some form of relief following the DHS operations.

The city’s damage assessment includes $47 million in lost wages from people “afraid to leave home” for work, $81 million in small business revenue losses, and $4.7 million from hotel cancellations, according to Minnesota Public Radio.

However, White House Border Czar Tom Homan pushed back against these demands during an appearance on Fox News. “A lot of things were broken, but it wasn’t because of Trump administration,” Homan said. He questioned whether Walz had similarly spoken out against issues at the southern border during Kamala Harris’s tenure, asking, “Did Governor Walz speak out against that — with the overdose deaths and sex trafficking and terrorists? No.”

The reimbursement demands come at a particularly sensitive time for Minnesota leadership, as the state faces intense scrutiny over what could be as much as $18 billion in fraud within its social services programs. A significant portion of this fraud reportedly stems from the Somali immigrant community in Minnesota.

David Hoch, a Minnesota journalist who investigated fraudulent childcare operations, recently testified to Senator Ted Cruz that the total cost to taxpayers could be “easily in excess of $30 billion when you take everything into account.” The gravity of the situation is heightened by reports suggesting millions of dollars flowed from Minnesota to Mogadishu and potentially into the hands of the African terror group Al Shabaab.

The financial impact extends beyond Minnesota’s borders, as some of the defrauded state programs receive partial or complete funding from federal sources, meaning taxpayers nationwide have contributed to the funds misappropriated in Minnesota.

The controversy has attracted political criticism from opponents like Republican gubernatorial candidate Mike Lindell, who claimed on social media that Walz was “either grossly negligent, incompetent or complicit with the fraud.”

The political fallout appears significant, as Walz has announced he will not seek a third term as governor. This decision comes amid growing questions about his administration’s oversight of state programs and his response to federal immigration enforcement actions.

The standoff between Minnesota Democrats and federal officials highlights the complex intersection of immigration enforcement, federal-state relations, and fiscal responsibility. As investigations into both the social services fraud and the impact of federal immigration operations continue, the question of who will ultimately bear the financial burden remains contentious.

For Minnesota residents caught in the middle, the dispute adds another layer of uncertainty to an already challenging situation, with both economic recovery and public service integrity hanging in the balance.