WATCH: Senators slam fraud, call for welfare scrutiny in Minnesota

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(The Center Square) - U.S. Senators on Wednesday called for more scrutiny over welfare payments and railed against allegations of fraud in Minnesota and across the country.

The senators hosted individuals to testify about allegations of fraud in Minnesota and elsewhere. The senators accused elected officials in Minnesota of knowingly covering up fraudulent payments to daycare centers and allowing welfare recipients to funnel money abroad.

“In Minnesota, a welfare system designed to uplift the most vulnerable children was treated like an open ATM, exploiting both taxpayers and the public trust extended to immigrant communities,” U.S. Sen. Ted Cruz, R-Texas, said.

Cruz claimed Minnesota officials ignored more than a decade of media reports and state audits that claimed hundreds of millions of dollars were lost to fraudulent payments. He said legislators in Minnesota did not enforce laws to crack down on fraudulent payments.

“They treated legislation as a press release, not a mandate, providing political cover while allowing the money to keep flowing,” Cruz said.

He cited reports that found Somali children were more likely to be diagnosed with autism compared to the general population. He said children were diagnosed in this way to funnel federal dollars into autism care.

“Doing that for financial enrichment is not merely fraud, it is the deliberate exploitation of children and the calculated betrayal of parents,” Cruz said.

Cruz also cited reports of billions of dollars in welfare payments that were sent abroad to support the Somali-based terror organization Al-Shabaab. He said Somalis in the United States sent more than $2 billion back to Somalia in 2023.

“When billions of dollars are stolen from US welfare programs and sent abroad, there is no credible way to ensure those funds do not enrich jihadists within Al-Shabaab,” Cruz said.

Democrat Senators on the panel called for a renewed focus on the actions of Immigration and Customs Enforcement in Minnesota instead of fraud. Sen. Sheldon Whitehouse, D-R.I., pointed to the deaths of two American citizens in Minneapolis at the hands of federal agents enforcing immigration laws.

Whitehouse also called attention to Trump administration policies he described as “a carnival of fraud and self-dealing.” He pointed to energy policy reversals from the administration that he said would cost millions for taxpayers due to climate-related disasters.

“Now we're in the most dangerous stage where the corruption is so entrenched that the fossil fuel industry can infiltrate and weaponize the federal government as its own industry tool to defeat energy competitors whose product is cleaner, safer, and cheaper,” Whitehouse said.

Witnesses on the panel also said the fraud in Minnesota had been occurring for decades. They called on senators to do more extensive background checks on welfare and federal grant recipients.

Minnesota state Rep. Kristin Robbins, R-Maple Grove, called on senators to do aggressive audits of welfare and grant recipients to receive federal funds.

“We also need the federal government to require documentation, not just attestation for eligibility in these programs,” Robbins said.

David Hoch, a witness on the panel who has investigated allegations of fraud in Minnesota, said fraud estimates could be as much as $80 billion in Minnesota alone. He called for more investigative forces and measures to counter fraud in the state.

Senators on the committee appeared to be in favor of Robbins’ proposals. U.S. Sen. Lindsey Graham called for stricter scrutiny to SNAP recipients and those on federal healthcare programs.

“If I’m going to give you money, is it too much to ask to prove you exist,” Graham asked. “No, that’s why we need documentation.”

“Bottom line is we're going to find a way to help the taxpayer,” Graham said. “I like feeding kids who are hungry and can't afford to get a meal unless they get one at school. I don't mind helping medicate people to get to where they want to go. I do mind when we're getting ripped off; and to the leadership of Minnesota, your day is coming.”