Senator Kennedy Blasts $1B Fraud Scandal

Bright, fiery explosion against a dark background.

Senator John Kennedy exposes Minnesota’s $1 billion taxpayer-funded Somali welfare fraud scandal as a direct consequence of sanctuary city policies, fueling President Trump’s decisive funding cuts.

Story Highlights

Sen. Kennedy blasts Minnesota’s governance as “clown world on steroids” over $1B fraud in the Feeding Our Future program.
President Trump terminates federal funding to sanctuary cities effective February 1, 2026, holding states accountable for shielding illegal immigrants.
59 convictions secured in massive scheme claiming 125 million fake meals, with funds allegedly funneled to lavish lifestyles and terror groups.
Gov. Tim Walz’s sanctuary stance and inconsistent ICE rhetoric enabled the crisis, now hitting Minnesota’s budget hard.

Minnesota’s Massive Welfare Fraud Exposed

Federal prosecutors uncovered the Feeding Our Future scandal during the COVID-19 period from 2020 to 2024. Individuals from Minnesota’s Somali community created fake companies that billed state agencies for unprovided meals under the Federal Child Nutrition Program. They claimed $250 million but stole over $1 billion in taxpayer dollars. Fifty-nine people face convictions, with investigations ongoing into kickbacks, luxury purchases, and funds sent overseas, possibly to terror groups. This fraud drained resources meant for American families.

Sen. Kennedy Demands Accountability

Senator John Kennedy delivered a fiery Senate floor speech in January 2026, calling Minnesota’s handling “a clown world on steroids.” He distinguished the 80,000 law-abiding Somali residents from the criminal subset responsible for the billion-dollar theft. Kennedy expressed outrage, stating the fraud made him want to “knee someone in the groin.” He framed sanctuary policies as the root enabler, criticizing Gov. Walz’s defense of the community amid clear governance failures. Republicans demand fiscal responsibility and law enforcement cooperation.

Trump Strikes Back Against Sanctuary Policies

On January 14, 2026, President Trump announced the end of federal funding to sanctuary cities and states protecting undocumented immigrants, effective February 1. These cuts target jurisdictions like Minnesota that limit cooperation with ICE. Trump labeled the state a “hub of fraudulent money laundering” and “hellhole,” highlighting how progressive policies foster crime and fiscal waste. The move restores federal leverage, pressuring states to prioritize American taxpayers over illegal immigration.

GOP gubernatorial candidate Patrick Knight slammed Walz’s sanctuary approach as part of broader failures in crime, education, and economy. Knight argued federal immigration enforcement works when states cooperate, positioning the scandal as proof of Democratic mismanagement. Minnesota Republicans refused to join Walz in attacking Trump, instead blaming the governor for not preventing the fraud.

Walz’s Inconsistent Stance Fuels Criticism

Governor Tim Walz testified to Congress in late January 2026 about cooperating with ICE on sanctuary policies and fraud. Yet he later called ICE the “modern day Gestapo” at a law school event, drawing charges of hypocrisy. Walz denounced Trump’s rhetoric as unprecedented, claiming it hurt children by labeling them “garbage.” Critics like Peter Schweizer call the evidence “overwhelming,” with hundreds of millions diverted systematically by Somali nationals from child feeding programs.

Fatal ICE confrontations with activists Renee Good and Alex Pretti sparked unrest and Senate talks on January 30, 2026. The compromise included appropriations bills and a Homeland Security stopgap for new guidelines. Kennedy dismissed bipartisan ICE reform as political theater, saying Democrats avoid supporting enforcement. These events underscore sanctuary policies’ dangers to public safety and federalism, vindicating Trump’s hardline approach for conservative values of law, order, and limited government overreach.