Federal law enforcement agencies swept across the Twin Cities on Tuesday, executing 22 search warrants in a major crackdown on alleged welfare fraud in Minnesota's social services programs. The coordinated operation, led by Homeland Security Investigations with support from the FBI and other partners, focused on child and daycare providers receiving Medicaid funding, according to sources familiar with the action.
The Department of Homeland Security confirmed the raids in a post on X, stating they were part of an investigation into the “rampant fraud of U.S. taxpayers dollars.” The Justice Department added that the activity was “court-authorized law enforcement activity as part of an ongoing fraud investigation,” emphasizing that the warrants were not tied to immigration enforcement.
Reports indicate that many of the targeted businesses were Somali-owned, including the “Quality Learning Center” daycare in Minneapolis. This aligns with President Trump’s earlier claims that Minnesota had become a “hub of fraudulent money laundering activity,” allegations he linked to the state’s Somali immigrant community.
The Trump administration first dispatched federal investigators to Minnesota in early January to probe what officials described as widespread fraud in the state's social services. That effort followed a broader federal probe that has already resulted in dozens of charges. Vice President JD Vance signaled the administration's resolve, writing on X: “The task force and the DOJ will be relentless in exposing these fraudsters wherever they may be hiding.”
In February, the administration temporarily halted hundreds of millions of dollars in Medicaid funding to Minnesota, citing fraud concerns. Governor Tim Walz, a Democrat who dropped his reelection bid in January amid scrutiny over the scandal, criticized the move as “political punishment.” However, on Tuesday, Walz appeared to back the raids, posting: “If you commit fraud in Minnesota you’re going to get caught — and that’s exactly what we saw today. We catch criminals when state and federal agencies share information. Joint investigations work, and securing justice depends on it.”
The operation underscores the ongoing federal push to crack down on fraud in public assistance programs, a priority for the Trump administration. Similar efforts have targeted other sectors, such as hospice care, where industry and policymakers are seeking reforms to prevent abuse. The Justice Department has also pursued high-profile fraud cases, including the indictment of the Southern Poverty Law Center over its informant program, a move that has drawn accusations of political weaponization from critics like Senator Chuck Schumer.
As the investigation unfolds, federal officials have signaled that more charges are likely. The raids mark a significant escalation in the battle against welfare fraud in Minnesota, a state that has become a flashpoint in the national debate over government spending and oversight.
