Nairobi, Kenya — During his State of the Union address on Tuesday night, U.S. President Donald Trump singled out Minnesota as the focal point of what he described as widespread fraud involving members of the Somali community, vowing an aggressive federal crackdown.
Trump alleged that “Somali fraud” in Minnesota has cost U.S. taxpayers at least $19 billion in state and federal funds, calling it one of the most striking examples of corruption in the country. He announced that Vice President J.D. Vance will spearhead a nationwide “war on fraud,” beginning with investigations in Minnesota.
“There’s been no more stunning example than in Minnesota, where members of the Somali community have pillaged an estimated $19 billion from the American taxpayer,” Trump said.
Trump expanded on an earlier announcement establishing a National Fraud Enforcement Division within the Justice Department. Under the new structure, the division will report directly to the White House through Vance rather than through traditional Justice Department channels.
According to Trump, the division will target “massive and complex fraud” involving federal funds in state programs — initially in Minnesota but eventually expanding to states including California, Washington, and Ohio.
He argued that recovering fraudulent funds could significantly reduce the federal deficit.
“Find enough of that fraud, and we’ll actually have a balanced budget overnight,” Trump said.
Investigations referenced by Trump involve alleged misuse of federal and state funds intended for:
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Childcare services
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Food programs for low-income families and seniors
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Healthcare and mental health services
Authorities estimate losses from these schemes range between $1 billion and $9 billion, though Trump claimed the total could be far higher.
In one high-profile case involving a food assistance program in Minnesota, 98 individuals were charged, with 85 identified as Somali Americans.
Other allegations include:
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Childcare centers claiming funds for children who did not exist
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Funds spent on personal items such as vehicles, vacations, clothing, and private expenses
Immigration and Cultural Claims
In his address, Trump linked the alleged fraud to immigration policy, arguing that “unrestricted immigration and open borders” import corruption and lawlessness into the United States. He claimed the issue contributes to higher living costs and crime.
“Importing these cultures through unrestricted immigration … brings those problems right here to the USA,” he said.
The remarks are likely to spark backlash from civil rights groups and Somali-American leaders, who have previously warned against stigmatizing an entire community over the actions of individuals.
The United States is home to more than 260,000 people of Somali origin, with nearly 100,000 living in Minnesota, the largest Somali population in the country. About 50,000 reside in the 5th Congressional District represented by Somali-American Congresswoman Ilhan Omar.
Previous investigations into alleged fraud involving pandemic relief funds began under former President Joe Biden in 2024 and were expanded after Trump took office in January 2025.
Trump emphasized that the anti-fraud initiative will expand nationwide, targeting suspected misuse of federal funds in multiple states.
“We’ll take care of this problem … We aren’t playing games,” he said.
As investigations proceed, the issue is expected to fuel debates over immigration, oversight of public funds, and the risk of collective blame against diaspora communities.
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