On February 4, 2026, the Senate Judiciary Subcommittee on Federal Courts, Oversight, Agency Action, and Federal Rights held a hearing titled “Somali Scammers: Fighting Fraud in Minnesota and Beyond,” chaired by Sen. Ted Cruz (R-TX).
In his opening statement, Cruz accused Minnesota’s Democratic leadership of deliberate inaction and complicity in widespread fraud within welfare programs, particularly child care and autism services. He cited federal prosecutors’ estimates that half or more of the $18 billion spent since 2018 on 14 Minnesota welfare programs may have been lost to fraud, potentially ranking among the largest such cases in U.S. history.
Cruz highlighted warnings dating back to a 2010 Pulitzer Prize-winning investigation and a 2019 Minnesota Legislative Auditor report identifying oversight deficiencies in the Child Care Assistance Program (CCAP), estimating $100 million already lost to fraud. He claimed that despite new laws passed in response, enforcement failed, with whistleblowers facing retaliation, including reassignments and accusations of racism.
The senator pointed to investigations revealing vacant or suspicious child care and autism centers, including blacked-out windows and no children present. He referenced a September 2025 federal charge against Asha Farhan Hassan for allegedly orchestrating a $14 million fraud scheme in the state’s Early Intensive Developmental and Behavioral Intervention (EIDBI) autism program, involving recruiting children, cash kickbacks to parents, unqualified therapists, and billing for unprovided services.
Cruz noted higher welfare usage rates among Somali households in Minnesota (e.g., 81% receiving some form of welfare vs. 21% for non-Somali households) and alleged that fraud proceeds laundered abroad—amid $2 billion in remittances to Somalia in 2023—could indirectly fund al-Shabaab, a U.S.-designated terrorist group. He quoted a confidential source claiming Minnesota taxpayers are the largest funder of al-Shabaab.
Cruz criticized Minnesota Gov. Tim Walz, Attorney General Keith Ellison, Minneapolis Mayor Jacob Frey, and other officials for declining invitations to testify, calling their absence evidence of avoidance.
The hearing featured testimony from independent journalist David Hoch, among others, and focused on alleged systemic failures, political sensitivities, and calls for stronger federal oversight and enforcement. No Democratic Minnesota officials appeared to respond to the allegations.