Rep. Randy Feenstra has introduced a bill that seeks to prevent individuals receiving public assistance from sending money internationally. This legislation stems from rising concerns about taxpayer abuse and recent fraud scandals that have implicated welfare programs. Under the proposed law, money transfer services would be required to verify the welfare status of their customers before allowing international transactions.
The initiative highlights a broader effort to address what Feenstra describes as a significant misuse of taxpayer funds. “The $9 billion fraud scandal in Minnesota is a stark warning to the country that waste, fraud, and abuse of taxpayer dollars remain serious issues,” he stated. The legislation mandates that money transfer providers secure written certification from customers affirming that they do not receive means-tested government welfare benefits.
Feenstra’s bill aligns with previous measures taken by the administration of former President Donald Trump, which aimed to mitigate the misuse of taxpayer resources. On January 14, 2023, the U.S. State Department implemented a freeze on visa processing for nationals from 75 countries identified as contributing to disproportionately high levels of welfare-dependent migration. Nations such as Somalia, Haiti, Iran, and Eritrea are included in this list, as the administration sought to prevent newcomers from becoming immediate financial burdens on American taxpayers.
The legislation is particularly relevant in light of data showing that over 81 percent of migrant households from certain countries, including Bhutan, Yemen, and Somalia, rely on some form of welfare assistance upon resettlement in the United States. In Minnesota, where the fraud scandal has come to a head, 81 percent of Somali-headed households receive welfare, compared to just 21 percent of native-born households in the state.
The Minnesota fraud scandal has escalated into significant allegations, including money laundering and the illegal use of federal human services funds. Reports suggest that daycare and food distribution centers allegedly received millions of taxpayer dollars without providing the promised services. To address this issue, Bessent, a key figure in the investigation, has outlined plans to offer cash rewards to whistleblowers who provide credible information about these fraudulent activities.
In addition, the Treasury Department is conducting thorough investigations into four money services businesses that facilitate overseas remittances from Minnesota residents, particularly to Somalia. While the names of these companies have not been disclosed, they are under scrutiny for potentially enabling fraudulent transfers of taxpayer-funded benefits overseas.
Feenstra emphasized the importance of ensuring that taxpayer dollars are not wasted. “If someone has enough money to send to foreign countries, they should not be on welfare in the first place,” he remarked. His bill is part of a larger conversation among lawmakers regarding immigration policies related to welfare.
On January 8, 2023, fellow legislators Rep. Troy Nehls and Sen. Roger Marshall introduced the Public Charge Clarification Act of 2025. This bill seeks to enhance restrictions on immigrants likely to rely on public assistance, requiring them to demonstrate financial self-sufficiency and secure sponsorship before obtaining legal status.
Feenstra concluded by underscoring the vulnerabilities of the American safety net to exploitation by criminals diverting resources away from those genuinely in need. “These programs are supposed to be a temporary hand-up for our most vulnerable neighbors,” he said. “My bill codifies President Trump’s work to combat fraud while protecting Iowa taxpayers from footing the cost of foreign money transfers.”
