Minnesota Democrats Demand Reparations from ICE After $18B Somali Fraud Losses

State and city officials seek federal reimbursement for costs tied to immigration enforcement, but face scrutiny over massive social services fraud.

Feb. 18, 2026 at 9:55pm

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Top Minnesota Democrats, including Gov. Tim Walz and Minneapolis Mayor Jacob Frey, are demanding the federal government provide reparations and reimbursement for costs associated with recent immigration enforcement operations in the state. However, their requests come amid revelations of up to $18 billion in social services fraud, much of it allegedly perpetrated by members of the Somali immigrant community and potentially linked to the terrorist group Al Shabaab.

Why it matters

The political clash highlights tensions between state and local officials over immigration enforcement, as well as concerns about fraud and mismanagement of taxpayer-funded social programs. The scale of the alleged fraud in Minnesota raises questions about oversight and accountability in the distribution of federal funds to state and local governments.

The details

Minnesota Democrats are seeking federal reimbursement for an estimated $203 million in costs to Minneapolis, including $47 million in lost wages, $81 million in small business revenue losses, and $4.7 million from hotel cancellations. However, the White House has pushed back, with former ICE Director Tom Homan questioning whether the state officials spoke out against "broken" border policies under the previous administration. Meanwhile, Walz's administration remains under scrutiny for up to $18 billion in social services fraud, with a large portion allegedly involving members of the Somali immigrant community and potentially linked to the terrorist group Al Shabaab.

  • In recent weeks, the Department of Homeland Security conducted an immigration enforcement surge in Minnesota.
  • Minnesota Gov. Tim Walz and Minneapolis Mayor Jacob Frey have made public demands for federal reparations and reimbursement since the enforcement operations.
  • Allegations of up to $18 billion in social services fraud in Minnesota have surfaced, with much of it reportedly tied to the Somali immigrant community.

The players

Tim Walz

The embattled governor of Minnesota who is demanding federal reparations and reimbursement for costs associated with recent immigration enforcement operations in the state.

Jacob Frey

The Democratic mayor of Minneapolis who is seeking $203 million in federal assistance to cover costs incurred by the city during the immigration enforcement surge.

Tom Homan

The former director of U.S. Immigration and Customs Enforcement (ICE) who questioned whether the Minnesota officials spoke out against "broken" border policies under the previous administration.

Mike Lindell

The Republican candidate for Minnesota governor who accused the Walz administration of being "grossly negligent, incompetent or complicit" in the $18 billion social services fraud.

David Hoch

A Minnesota journalist who testified to Sen. Ted Cruz that the cost to taxpayers from the social services fraud could be "easily in excess of $30 billion."

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What they’re saying

“The federal government needs to pay for what they broke here. There [is] going to be accountability on the things that happened, but one of the things is the incredible and immense costs that were borne by the people of this state.”

— Tim Walz, Governor of Minnesota

“A lot of things were broken, but it wasn't because of Trump administration. Did Governor Walz speak out against that — with the overdose deaths and sex trafficking and terrorists? No.”

— Tom Homan, Former ICE Director (Fox & Friends)

“The cost to taxpayers could be easily in excess of $30 billion when you take everything into account.”

— David Hoch, Minnesota Journalist

What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

This case highlights growing concerns in the community about repeat offenders released on bail, raising questions about bail reform, public safety on SF streets, and if any special laws to govern autonomous vehicles in residential and commercial areas.