Minnesota ‘Ground Zero’ in Landmark DHS Fraud Investigation

Trump administration to create new division in Justice Department for national fraud enforcement.

President Donald Trump is launching a whole-of-government approach to investigate and root out the “rampant and pervasive” problem of fraud and other crimes, predominantly within the Somalian refugee community in Minnesota. The Department of Homeland Security and US Citizenship and Immigration Services on Friday announced its December launch of Operation PARRIS (Post-Admission Refugee Reverification and Integrity Strengthening) in Minnesota. This is a sweeping action that will result in thousands of refugee cases being reexamined through new background checks and intensive vetting of refugee claims, DHS says.

Operation PARRIS is part of a broader strategy to enhance screening standards under President Trump’s day one Executive Order “Protecting the United States From Foreign Terrorists and Other National Security and Public Safety Threats,” and his June Presidential Proclamation “Restricting the Entry of Foreign Nationals To Protect the United States From Foreign Terrorists and Other National Security and Public Safety Threats.”

The revelation of the operation comes one day after the White House announced the upcoming creation of a new division within the Department of Justice devoted to “investigate, prosecute, and remedy fraud affecting the Federal government, federally funded programs, and private citizens.”

The new assistant attorney general will also contribute to the development of national enforcement priorities and work to reform laws to close systemic vulnerabilities and prevent future abuses, according to the White House.

The actions are part of a robust response from the Trump administration to the news reported by independent YouTube journalist Nick Shirley of Minnesota, who released a 42-minute video on X on December 26, 2025, that went viral. Shirley’s exposé of many empty Somali-run Minnesota daycares reportedly receiving federal funds captured the attention of many in Trump’s administration and led to former vice presidential candidate and Minnesota Democratic Governor Tim Walz stepping out of the race for re-election on January 5 – though not before calling Shirley a “delusional conspiracy theorist.”

US Secretary of Treasury Scott Bessent spoke at the Economic Club of Minnesota on Thursday:

“The GAO, the General Accounting Office, believes that there is somewhere between 300 and 600 billion of annual fraud – roughly 10% of government spending that disappears due to fraud. If we can recapture that, that is one to two percent of GDP.”

The federal investigations of multimillion dollar welfare fraud schemes in Minnesota date back to 2021. The Justice Department has charged a total of 98 people in Minnesota in fraud related cases, with 85% of them being Somali immigrants. Sixty-four have been convicted. Bessent said there may be greater financial loss due to fraud in other states.

Minnesota Is ‘Ground Zero’

“Minnesota, unfortunately, is ground zero for what may be one of the most egregious welfare scams in our nation’s history to date. Under Governor Tim Walz, billions of dollars intended for families in need, housing for disabled seniors, and services for children were diverted to benefit fraudsters. I’m here this week to signal the U.S. Treasury’s unwavering commitment to recovering stolen funds, prosecuting fraudulent criminals, preventing scandals like this from ever happening again, and investigating similar schemes state by state.”

Operations PARRIS will focus on Minnesota’s 5,600 refugees who have not yet been given lawful permanent resident status, (Green Cards), DHS says. Adjudicators will conduct thorough background checks, reinterviews, and merit reviews of refugee claims, according to a press release by DHS on Friday.

House Oversight Investigates

The House Committee on Oversight and Government Reform held a hearing on Wednesday to investigate fraud and misuse of federal funds in Minnesota. House Oversight Committee Chairman James Comer (R-KY) said in his opening remarks:

“Federal prosecutors estimate these criminals have stolen at least $9 billion. The breadth and depth of this fraud is breathtaking. And I fear it is just the tip of the iceberg…. It’s a problem for taxpayers across the United States. About 35% of Minnesota’s budget comes from federal grants.”

Republican Minnesota State Rep. Kristin Robbins, who Is running for governor, testified before the Committee that the office of legislative auditor began reporting widespread welfare fraud in Minnesota in 2009 and “credible reports” on childcare fraud began in 2011 to 2013. Robbins testified that Walz knew about the fraud from the beginning.

US Rep. Brandon Gill (R-TX), in questioning former Special Counsel for the US Department of Justice Brendan Ballou, highlighted the gross asymmetry between Somalian-born immigrants receiving welfare and native Minnesotans: 54% of Somali-headed households are on food stamps, compared to 7% of native Minnesotan households; 73% of Somali-headed households are on Medicaid, compared to 18% of Minnesotan native households; 81% of Somali-headed households are on welfare in general. After 10 years of living in the U.S., Gill said 78% of Somali immigrant households continue to receive welfare benefits.

“That doesn’t seem like something that makes our country stronger to me,” Gill said, “I think most of Americans would agree with me on that.”

In the June proclamation that served as the basis for Operation PARRIS, Trump listed Somalia as a country of identified concern and fully suspended the entry of Somalia nationals into the United States as immigrants and nonimmigrants. The administration has initiated a slew of enforcement actions across multiple agencies to end what the White House calls Minnesota’s fraud epidemic, including sending roughly 2,000 DHS agents to Minnesota to conduct targeted, door-to-door investigations at locations suspected of fraud. The Department of Health and Human Services has frozen childcare payments and enhanced requirements for all childcare-related payments nationwide. The Department of Agriculture has demanded Minnesota conduct recertification for its SNAP recipients to ensure compliance with eligibility requirements, the White House says.

The Trump administration is throwing the kitchen sink at the widespread welfare fraud in Minnesota and nationwide, and more fraud exposure is sure to follow.