By Gloria Ogbonna
U.S. Representative Randy Feenstra (R-IA) has introduced new legislation aimed at stopping individuals who receive public assistance from wiring money to foreign countries, arguing that the practice represents a growing abuse of taxpayer-funded welfare programs and contributes to large-scale fraud.
The proposal comes amid heightened scrutiny of welfare misuse following a series of high-profile fraud scandals, including a multibillion-dollar case centered in Minnesota.
This week, Feenstra formally unveiled the No American Benefits Abroad Act, a bill that would prohibit recipients of means-tested public assistance from initiating international wire transfers or sending money abroad through remittance services.
In addition to the ban itself, the legislation would require money transfer companies to obtain written certification from customers affirming that they do not receive government welfare benefits before processing any overseas transaction.
Feenstra said the measure is a direct response to systemic failures that have allowed taxpayer dollars to be siphoned out of the country with little oversight.
“The $9-billion fraud scandal in Minnesota is a stark warning to the country that waste, fraud, and abuse of taxpayer dollars remains a serious and rampant issue,” he said. “We cannot tolerate even a single taxpayer dollar being wasted due to fraudulent activity at the hands of criminals.”
The legislation aligns with broader enforcement and accountability efforts championed under President Donald Trump’s administration, which has emphasized tighter controls on welfare spending and immigration-related benefits.
On January 14, the U.S. State Department announced a freeze on visa processing for nationals of 75 countries identified as having disproportionately high rates of welfare dependency among migrants.
Countries included in the freeze reportedly include Somalia, Haiti, Iran, and Eritrea, among others. The move was designed to prevent new arrivals from immediately becoming long-term financial burdens on American taxpayers.
That decision followed the release of data from the Trump administration showing that in some cases, more than 81 percent of migrant households from certain countries such as Bhutan, Yemen, and Somalia receive some form of public assistance after resettling in the United States. The situation is particularly pronounced in Minnesota, where an ongoing fraud investigation has drawn national attention.
According to the data cited by administration officials, approximately 81 percent of Somali-headed households in Minnesota receive welfare benefits, compared with about 21 percent of native-born households statewide.
At the same time, the federal government has intensified its pursuit of individuals and organizations allegedly involved in the Minnesota fraud scandal. U.S. Treasury Secretary Scott Bessent has taken a leading role in expanding investigations into schemes involving money laundering and the illegal use of federal human services funds.
Prosecutors allege that certain daycare centers and food-distribution organizations received millions of dollars in taxpayer funding without providing the services they claimed to offer.
Last week, Bessent announced plans to offer cash rewards to whistleblowers who provide credible information exposing welfare fraud. He said tips detailing who was involved, how the fraud was carried out, and where it occurred could qualify for financial incentives, as the administration seeks to encourage insiders to come forward.
Bessent also confirmed that the Treasury Department is conducting in-depth investigations into four money services businesses operating in Minnesota that facilitate international remittances, particularly to Somalia.
While the firms were not publicly named, the department is examining whether these companies knowingly allowed welfare recipients to transfer taxpayer-funded benefits overseas, potentially violating federal law.
Feenstra’s legislation would codify Bessent’s broader push to bar welfare recipients from initiating international wire transfers. According to Feenstra, the principle behind the bill is straightforward. “If someone has enough money to send to foreign countries, they should not be on welfare in the first place,” he said.
The timing of the proposal also coincides with renewed congressional efforts to address perceived weaknesses in immigration and welfare policy.
On January 8, Rep. Troy Nehls (R-TX) and Sen. Roger Marshall (R-KS) introduced the Public Charge Clarification Act of 2025, which would tighten standards for immigrants seeking legal status by requiring stronger proof of financial self-sufficiency and reliable sponsorship to reduce reliance on public assistance.
Feenstra emphasized that welfare programs are intended to serve as a temporary safety net for Americans in genuine need, not as a pipeline for fraud or overseas money transfers. “These programs are supposed to be a temporary hand-up for our most vulnerable neighbors,” he said.
“My bill codifies President Trump’s work to combat fraud while protecting Iowa taxpayers and all American taxpayers from footing the bill for foreign money transfers.”
Source Breitbart