Sanctuary Laws Blamed for Minnesota’s $9 Billion Welfare Fraud

As a shocking $9 billion welfare fraud scandal unfolds in Minnesota, the finger is now being pointed directly at the state's sanctuary policies and the implications are massive.

Former President Donald Trump’s Acting ICE Director, Todd Lyons, went on record this week blaming sanctuary laws for enabling the widespread criminal fraud now tied to Minnesota’s Somali community. During an appearance on Fox & Friends, Lyons explained how these policies which prohibit local law enforcement from cooperating with federal immigration authorities effectively created a shield for criminal enterprises.

“There’s always a tie when it comes to sanctuary jurisdictions,” Lyons said. “You see a lot of these fraudsters use sanctuary protections to commit criminal fraud just like this.”

Here’s what we know:

• At least $9 billion in taxpayer funds may have been stolen via fake nonprofits and shell companies, according to federal authorities.

• A portion of the stolen cash was allegedly funneled back to Somalia, including to terrorist group Al-Shabaab.

• Of the 98 people charged so far, 85 are reportedly of Somali descent, and more prosecutions are expected.

Lyons said Homeland Security agents have been conducting door-to-door inspections across Minneapolis, uncovering suspected fraud fronts including “daycare” centers and learning facilities that had no children on site despite collecting millions in taxpayer dollars.

Independent journalist Nick Shirley released a 42-minute exposé last week, going viral after documenting several of these “child care centers” that appear to be nothing more than facades.

Lyons further revealed that the investigation is uncovering far more than just fraud.

“There is criminal activity when it comes to labor trafficking, child trafficking, [and] human exploitation... And you’ll always come back to these sanctuary jurisdictions,” he warned.

The Trump administration had already sued Minnesota in 2023 over its sanctuary laws, with then-Attorney General Pam Bondi accusing state leaders of helping illegal immigrants “circumvent the legal process.”

Now, Bondi is personally involved in the Minnesota investigation. On Monday, she confirmed the number of indictments on X, adding “We have more prosecutions coming … BUCKLE UP, LAWMAKERS!”

What’s unfolding in Minnesota is yet another reminder of how sanctuary policies pushed by Democrats under the guise of “protection” open the doors to fraud, exploitation, and criminal networks that threaten national security. While the Biden administration looks the other way, states like Minnesota have become safe havens for those gaming the system at the expense of honest Americans.

And let’s be clear: without Trump’s leadership and the investigations launched under his administration, this rot would have continued unchecked.

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