“What happened in Minnesota is as bad as it gets.”
Prepared Opening Statement by Senator Chuck Grassley of Iowa
Chairman, Senate Judiciary Committee
Somali Scammers: Fighting Fraud in Minnesota and Beyond
Wednesday, February 4, 2026
Senator Cruz, thank you for chairing this important subcommittee hearing.
During my career, I’ve exposed waste, fraud and abuse within many government programs.
At the end of last year, the American people learned of shocking and sophisticated fraud schemes in Minnesota.
Billions of taxpayer dollars may have been lost to crime.
What happened in Minnesota is as bad as it gets.
These fraud schemes have targeted federal programs designed to help children with autism, the elderly and small businesses.
It’s deplorable that fraudsters would target programs designed to help Americans struggling to take care of their children and families.
It’s also deplorable that the Walz administration allegedly retaliated against whistleblowers who tried to expose this fraud.
If true, such retaliation can’t go unpunished.
In large-scale fraud schemes like these, whistleblowers are the public’s greatest assets and allies.
Congress, federal agencies and state agencies must protect these whistleblowers.
And the executive branch must hold criminals fully accountable to the law.
That’s why, in January, I wrote to nearly 10 agencies, including the Department of Justice and the FBI, regarding the allegations.
This is about accountability.
I want to know what the government’s doing to solve this problem, hold wrongdoers accountable and take steps to ensure this never happens again.
Director Patel announced in December 2025 that the FBI deployed personnel and investigative resources to Minnesota.
Attorney General Bondi has ordered additional DOJ prosectors to Minnesota.
And, on January 8, the Trump administration announced the creation of a new division for national fraud enforcement within the Department of Justice.
This new division will focus on rooting out fraud across the federal government.
And it’ll be led by a new Assistant Attorney General.
The Treasury Department’s introduced additional reporting requirements for banks and other financial institutions in Minnesota.
These new requirements are designed to alert regulators to suspicious overseas transfers of cash.
Regarding these financial oversight efforts, Secretary Bessent recently stated, “Minnesota is going to be the genesis for a national rollout.”
A national approach is needed now more than ever.
The Department of Education has also reportedly begun creating a dedicated fraud detection team and has already prevented $1 billion in student aid fraud since January 2025.
I expect the administration to provide the Committee with updates regarding their efforts.
However, as the title of this hearing suggests, allegations of fraud have extended beyond Minnesota to other states.
Fraudsters are operating on a national scale, affecting federal programs from Medicaid to student aid and beyond.
The federal government and state governments – whether Republicans or Democrats are in charge – must always respect the taxpayer and their money. The same is true of the Inspector General community.
Federal and state agencies across the country must work together to get to the bottom of these sophisticated fraud schemes.
This should be a bipartisan issue.
Senator Cruz, thank you again for holding this important hearing.
I look forward to today’s testimony.
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