Legislation introduced by Rep. Randy Feenstra seeks to restrict individuals receiving public assistance from sending money internationally. This initiative has emerged amid concerns regarding taxpayer abuse and prominent fraud scandals, particularly highlighted by a recent investigation in Minnesota. The proposed bill mandates that money transfer providers verify the welfare status of customers before processing international transactions.
Under this legislation, financial institutions would be required to obtain written certification from customers, confirming they do not receive means-tested government benefits. “The $9 billion fraud scandal in Minnesota is a stark warning to the country that waste, fraud, and abuse of taxpayer dollars remains a serious issue,” Feenstra stated. He emphasized the need for strict measures to protect taxpayer funds and prevent fraudulent activities.
The proposal aligns with broader efforts initiated during former President Donald Trump’s administration to address the misuse of taxpayer funds. On January 14, 2023, the U.S. State Department announced a freeze on visa processing for nationals from 75 countries identified as contributing to high levels of welfare-dependent migration. Countries such as Somalia, Haiti, Iran, and Eritrea are included in this list, aiming to mitigate the financial burden on American taxpayers from newcomers reliant on public assistance.
In Minnesota, the ongoing fraud scandal has raised alarm, with data indicating that approximately 81 percent of Somali-headed households rely on welfare, compared to just 21 percent of native-born households. The investigation involves allegations of money laundering and the illegal use of federal funds, where daycare and food distribution centers reportedly received millions of taxpayer dollars without delivering services.
To combat fraud, state officials, including Bessent, have proposed cash rewards for whistleblowers who provide credible information regarding fraudulent activities. This includes details about the individuals involved and the methods used. The Treasury Department is also conducting investigations into several money services businesses that facilitate remittances, particularly those transferring funds from Minnesota residents to foreign nations, notably Somalia.
Feenstra argues that if individuals have sufficient funds to send abroad, they should not qualify for welfare. His bill appears timely, as lawmakers like Rep. Troy Nehls and Sen. Roger Marshall are advocating for reforms aimed at addressing shortcomings in welfare-related immigration policies. Their proposed legislation, known as the Public Charge Clarification Act of 2025, would require immigrants to demonstrate financial self-sufficiency before being granted legal status.
Feenstra reiterated that the American safety net is vulnerable to exploitation by criminals diverting resources from those genuinely in need. “These programs are supposed to be a temporary hand-up for our most vulnerable neighbors,” he stated, emphasizing the need for protective measures for taxpayers.
As discussions regarding welfare reform continue, the introduction of this legislation marks a significant step in the ongoing dialogue about the integrity of public assistance programs and their impact on American taxpayers.
