Minnesota's Business Aid Program Shut Down Amid Fraud Concerns

<p>A program designed to assist businesses impacted by the Trump administration’s immigration enforcement efforts in Minnesota has been shut down due to widespread fraud concerns, according to local news reports.</p><p>The board of Hennepin County in Minnesota, which includes Minneapolis, approved $2 million in funding for local businesses affected by Operation Metro Surge, a large-scale immigration enforcement operation launched in December 2025. The county received approximately 300 applications and distributed about $500,000 to 82 applicants, while over 200 applications were flagged for potential fraud, according to local reports.</p><p>Hennepin County Commissioner Jeff Lunde stated, "The fact that people, after all this fraud, felt that they could apply and get away with it, I think it's a problem because clearly there's no fear out there." He added, "Until we get it where people fear things, then they're gonna keep doing it," as reported by Kare 11.</p><p>Much of President Donald Trump’s rhetoric surrounding illegal immigration in Minnesota has targeted the state’s Somali population amid reports of widespread fraud.</p><p>Members of Minnesota’s Somali community have been accused, and in some cases convicted, of using non-existent or inactive businesses and nonprofits to siphon money from government programs intended to assist those in need.</p><p>Hennepin County officials reported that many businesses seeking relief funds submitted applications containing false information, which were allegedly fabricated and copied for multiple businesses. Some businesses that applied were found not to exist during site visits conducted by county officials.</p><p>Lunde noted, "Then at a certain point we're like, 'OK, we're getting declining results on that.' And so we said it's time to stop the program. So we just stopped processing at that point," characterizing the applications as overwhelmingly fraudulent.</p><p>The immigration enforcement operation in the state drew national attention after U.S. citizens Renee Good and Alex Pretti were fatally shot by federal agents in Minneapolis in January.</p><p>Minnesota Governor Tim Walz acknowledged responsibility for addressing the fraud in his state, stating it is his "responsibility to fix it." He previously argued that "any amount of fraud is too much and undermines the very programs that do so much to raise our quality of life." However, he has pushed back against conservative attempts to attribute the fraud primarily to the Somali community.</p><p>Walz commented, "What is not helpful is the president of the United States demonizing an entire community," in a December 2025 op-ed.</p><p>Hennepin County and Walz's office did not respond to requests for comment when reached by Fox News Digital on Thursday.</p>