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House Passes ‘Deporting Fraudsters Act’ as Trump Freezes Millions in Federal Funding Over “Ghost Daycare” Scams

Thomas Smith
4 Min Read

The U.S. House of Representatives passed a high-stakes legislative crackdown on Wednesday, voting to make welfare fraud a mandatory deportable offense for noncitizens. The move follows a series of massive fraud scandals in Minnesota that have already triggered a federal funding freeze and the political withdrawal of Governor Tim Walz.

Lawmakers voted 231-186 to approve the Deporting Fraudsters Act of 2026 (H.R. 1958). Sponsored by Rep. David Taylor (R-Ohio), the bill amends the Immigration and Nationality Act to explicitly categorize the theft of taxpayer-funded benefits—including SNAP, Medicaid, and Social Security—as a ground for immediate removal and permanent inadmissibility.

Legislative Flashpoint: Conviction vs. Admission

The debate on the House floor centered on a controversial provision that allows federal authorities to deport individuals who admit to fraud, even in the absence of a formal criminal conviction.

  • Republican Argument: Supporters argue the bill closes “legal loopholes” used by activist prosecutors to shield noncitizens from immigration consequences through plea deals. “If you admit to or you’re convicted of fraudulently receiving public benefits, you are out of here on the next plane,” said Rep. Tom McClintock (R-Calif.).
  • Democratic Opposition: Nearly 200 House Democrats voted against the measure. Rep. Jamie Raskin (D-Md.) blasted the bill as “redundant,” arguing that existing law already covers serious fraud. He warned that bypassing conviction requirements erodes due process and deprives victims of their day in court.

The Minnesota Catalyst

The legislative push gained momentum following the “Feeding Our Future” scandal in Minnesota, described by federal prosecutors as one of the largest pandemic-era frauds in U.S. history.

As of early 2026, nearly 100 individuals—predominantly from Minnesota’s Somali-American community—have been charged or convicted in schemes that allegedly funneled $250 million to $350 million away from hungry children. Investigators found the stolen funds were used to purchase luxury real estate, high-end vehicles, and in some cases, allegedly transferred to overseas entities with ties to terror groups like al-Shabaab.

The political fallout has been swift:

  • Walz Withdrawal: Governor Tim Walz announced in January he would not seek a third term, citing the need to “focus on the work” of cleaning up the state’s oversight failures.
  • Federal Freeze: The Trump administration’s Centers for Medicare & Medicaid Services (CMS) deferred $259.5 million in Medicaid funding to Minnesota in February, citing a lack of state-level fraud controls.

Federal Task Force and Oversight

The White House has escalated its response beyond Minnesota. On March 16, President Trump signed an Executive Order establishing the Task Force to Eliminate Fraud, chaired by Vice President JD Vance.

The task force is investigating similar systemic vulnerabilities in California, New York, and Illinois. House Republicans have specifically pointed to findings by independent journalist Nick Shirley, who testified before Congress after his viral investigations allegedly uncovered “ghost daycares”—empty facilities in Minnesota and California that were receiving millions in taxpayer subsidies.

“Americans work too hard to have their tax dollars stolen by those who shouldn’t be here in the first place,” Rep. Taylor stated following the vote.

The Path Ahead

Despite its House victory, the Deporting Fraudsters Act faces a grim future in the Senate. Democratic leadership has signaled the bill will not reach the 60-vote threshold required for passage, dismissing it as a “political stunt” aimed at the 2026 midterm elections.

The White House, however, maintains it has the executive authority to continue freezing funds to states that fail to implement “minimum anti-fraud requirements” such as mandatory identity verification and pre-payment audits.

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