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EXCLUSIVE: Senator Jim Banks, R-Ind., is pushing for a federal investigation after sending a letter to the U.S. Department of Health and Human Services (HHS) calling for the agency to construct investigative reports of Somali networks as the roughly $9 billion fraud scandal in Minnesota continues to unfold.
Banks serves on the Senate Committee on Health, Education, Labor and Pensions (HELP), which oversees major areas of healthcare funding and policy.
The Indiana senator pointed out that the Minnesota Child Care Assistance Program is administered by the state government, but is largely funded by federal tax dollars through two programs that provide roughly $300 million in federal childcare subsidies to Minnesota.
On Sunday, Banks sent a letter to Alex J. Adams, the Assistant Secretary for Family Support, leading the Administration for Children and Families (ACF) at HHS.
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“I urge ACF to investigate reports of Somali networks creating fake ‘daycare centers’ as vehicles to steal millions of dollars from Minnesota’s Child Care Assistance Program (CCAP), which administers hundreds of millions of dollars in federal childcare subsidies each year,” Banks’ letter to HHS reads.
“Clearly, the Walz administration has failed to meet the most basic benchmarks required by ACF,” Banks explained. “Any unlawful behavior uncovered in ACF’s investigation must be immediately referred to the proper federal authorities including ICE, the Department of Homeland Security, and Federal prosecutors.”
The Department of Homeland Security’s HSI and ICE agents were on the ground in Minnesota on Monday, and Secretary Kristi Noem posted to X that the agency was “conducting a massive investigation on childcare and other rampant fraud.”
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Noem noted there’s more information coming as to the DHS investigation.
Federal authorities in Minnesota opened a separate probe in 2022 into Feeding Our Future, a nonprofit that prosecutors later said played a central role in what would become one of the most extensive COVID-era relief fraud cases ever uncovered.
As the case unfolded, investigators identified roughly $250 million in false claims, with 78 people ultimately facing criminal charges. Prosecutors have indicated the broader fraud tied to the scheme could reach as high as $9 billion.
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A significant number of those charged were members of Minnesota’s Somali community.
The scandal also sparked internal backlash within the state government. More than 400 Minnesota employees raised concerns that Gov. Tim Walz, who later became the Democratic vice presidential nominee on the Kamala Harris ticket, failed to respond adequately to repeated warnings about fraud and allowed retaliation against whistleblowers who tried to bring the misconduct to light.
Banks notes the importance of ensuring everyone behind the scandal is brought to justice, as well as holding elected officials and those who had responsibility over the matter accountable.
“Minnesota’s childcare system relies on American taxpayer dollars,” Banks told Fox News Digital. “As a member of the HELP Committee, I am calling for an investigation into the fake childcare centers run by Somali crime networks.
“I will not stand by while tax dollars meant to support hardworking families are stolen and state officials refuse to act,” Banks added.
Fox News Digital reached out to DHS, HHS and Gov. Tim Walz but did not receive responses in time for publication.
Preston Mizell is a writer with Fox News. Story tips can be sent to [email protected] and on X @MizellPreston
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