Church charities receive $62 million to settle Somali refugees in Minnesota, sparking fraud probes
Catholic Charities and Lutheran Social Services have been paid at least $62 million to resettle tens of thousands of Somali refugees in Minnesota, a program now tied to massive welfare fraud allegations and a federal raid on Rep. Ilhan Omar’s home.
Since 1993, Catholic Charities and Lutheran Social Services—now operating as Global Refuge—have administered federal resettlement contracts that have funneled at least $62 million into Minnesota’s Somali community, assisting the relocation of an estimated 29,000 refugees. This funding forms part of a broader influx of migrant assistance that totals "hundreds of millions" in the Twin Cities, drawing criticism for diverting charitable donations and encouraging chain migration to a state with a robust welfare safety net.
Analysts link the settlement program to a $9 billion welfare fraud investigation targeting the Somali population, described as the largest alleged scam in U.S. history. The controversy intensified after federal immigration agents raided the home of Democratic congresswoman Ilhan Omar, whose district includes Minneapolis’s "Little Mogadishu." Catholic Charities Twin Cities reports it closed its refugee and immigrant programs in 2018, and Lutheran Social Services of Minnesota has not responded to requests for comment.
Why it matters
It shows how large government contracts to faith groups shape refugee settlement and raise concerns about fraud and political scrutiny.
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