Late Friday evening, President Trump issued one of his most sweeping immigration decisions since returning to office: the immediate termination of Temporary Protected Status (TPS) for Somali nationals residing in Minnesota. The announcement, released on his Truth Social account, came as federal investigators continue to scrutinize reports claiming that widespread fraud within Minnesota’s welfare system has been allowed to flourish for years and that portions of that money may have been diverted overseas to extremist groups.

Trump framed the move as an urgent response to what he described as systemic abuse of taxpayer-funded programs and a failure of state leadership to maintain oversight.

“Minnesota, under Governor Tim Walz, has become a center for large-scale money laundering and fraud,” Trump wrote. “I am terminating TPS protection for Somalis in Minnesota, effective immediately. Somali gangs are harming communities, billions of dollars are unaccounted for, and the American taxpayer has had enough.”

The announcement marks the most direct federal action taken in response to a series of scandals that have drawn national attention and raised questions about the integrity of Minnesota’s welfare system.

Background: A State Still Reeling from Massive Fraud Investigations

Minnesota has been under an intense spotlight since the Feeding Our Future case broke open during the pandemic. It became the largest COVID-era fraud case in the United States, involving more than $250 million allegedly stolen from federal nutrition programs for children.

Yet according to a detailed report published this week by City Journal, that case was only one piece of a much larger pattern. The report claims that Minnesota’s welfare and housing support programs — among the most expansive in the country — have become deeply vulnerable to fraud due to minimal oversight, generous reimbursement structures, and a state bureaucracy slow to act when irregularities appear.

Investigators working in and around Minnesota say the state has lost billions of dollars in recent years, not just millions. The City Journal investigation alleges that individuals within the Somali-American community were involved in some of the most elaborate schemes uncovered so far. Many of these individuals, the report says, operated through Minnesota’s Medicaid Housing Stabilization Services, which pays providers to help at-risk individuals secure housing and support services.

According to sources quoted in the report, this program became a prime target for misuse because it authorized large payments with relatively little documentation required. Some investigators have described the structure as “nearly impossible to audit in real time,” creating a landscape where fraudulent billings could accumulate quickly.

Terror Financing Allegations Increase Tension

The most serious claims involve allegations that portions of the money stolen through fraudulent welfare programs were transferred overseas — specifically to Somalia — where some payments reportedly made their way to al-Shabaab, an armed extremist group operating in East Africa.

Federal counterterrorism officials quoted in the report say that while not all unlawful funds were funneled into extremist hands, “millions of dollars” appear to have been sent overseas in ways that raise concerns.

One unnamed source summed it up starkly:

“The largest unintentional financial contributor to al-Shabaab right now is the Minnesota taxpayer.”

While these claims have not yet been substantiated by public indictments, the gravity of the allegations has elevated the political pressure on both the state and federal government to act swiftly.

A Direct Challenge to Minnesota’s Leadership

The decision to terminate TPS is widely seen as a targeted rebuke of Minnesota’s handling of its welfare systems. Trump’s post suggested that state officials had failed to recognize or confront signs of corruption.

Critics of the Walz administration say the welfare system expanded too quickly during the pandemic and that oversight mechanisms never caught up. Supporters of the administration argue that the vast majority of Somali Minnesotans have no involvement in any wrongdoing and that the fraud was committed by isolated individuals.

The debate has become politically charged, especially because Minnesota has one of the largest Somali populations in the United States — a community deeply integrated into the state’s workforce, economy, and civic life.

What Ending TPS Means

Temporary Protected Status allows nationals from certain countries facing war, natural disaster, or other extraordinary conditions to live and work legally in the United States for a limited period. Somali nationals first received TPS because of instability and conflict in Somalia.

Ending TPS means:

• Individuals whose only legal protection was TPS may now be subject to removal proceedings.
• Those with other immigration pathways (such as asylum, residency, or citizenship) will not be affected.
• The federal government may begin sending notification letters to TPS holders instructing them to prepare for possible status changes.

Immigration advocates note that many TPS recipients have lived in Minnesota for more than a decade and have built families, careers, and businesses. They argue that the action will disrupt community stability and separate households.

Ilhan Omar Responds Strongly

Rep. Ilhan Omar, one of the most vocal members of Congress and a high-profile Somali-American political figure, responded almost immediately to Trump’s announcement.

On X, she wrote:

“I am a citizen, and so are the majority of Somalis in America. Good luck celebrating a policy change that will not affect most of the people you routinely target. We are here to stay.”

Her response sought to emphasize that the Somali community in Minnesota is not composed primarily of TPS holders and that many are U.S. citizens or permanent residents. She also dismissed the idea that the TPS change would meaningfully reduce Minnesota’s Somali population or alter its leadership structure.

However, Omar’s critics argue that federal fraud cases have repeatedly pointed to organized networks of individuals who took advantage of Minnesota’s generous public programs and that her dismissal of the TPS decision overlooks the gravity of the allegations.

A Deepening Divide Between Federal and State Leadership

Trump’s announcement creates a new point of conflict between Washington and Minnesota’s state government.

• State officials may challenge the TPS termination or attempt to negotiate exceptions.
• Federal agencies may increase investigations into Minnesota-connected fraud and overseas money transfers.
• Community organizations will likely mobilize to assist affected TPS holders with legal guidance.

For Minnesota’s Somali community, the situation is deeply complicated. Many feel unfairly associated with wrongdoing committed by a small number of individuals. Others fear that the allegations — regardless of their scope — will be used to justify broader anti-immigrant policies.

What Happens Next

The next few weeks will be crucial in determining the full impact of the decision. Expect:

• Legal challenges to the TPS termination
• Additional reporting on Minnesota’s welfare systems
• Potential new indictments if investigators confirm terror-financing claims
• Increased political tension between federal and state leaders

While Trump’s supporters argue that he is taking necessary action to protect taxpayers and national security, opponents accuse him of using isolated cases to justify sweeping measures against an entire community.

The situation is likely to remain a major national story, reshaping debates about immigration, welfare oversight, and domestic terror financing for months to come.