$9 Billion Theft Sparks Deportation Push

Senator Marsha Blackburn’s new Fraud Accountability Act promises to deport and denaturalize immigrants who steal billions from American taxpayers, striking back at the fraud enabled by Biden-era policies.

Story Highlights

Senator Blackburn leads Republican senators in introducing bicameral bill classifying fraud as a deportable offense under immigration law.
Targets massive Minnesota fraud schemes involving Somali-run childcare centers, with alleged theft exceeding $9 billion in taxpayer funds.
Creates pathway for denaturalizing citizens convicted of fraud, protecting fiscal integrity and national security.
Responds to Biden’s 2024 removal of childcare attendance verification, which sponsors say opened doors to abuse.
President Trump’s freeze of $10 billion in grants shows commitment to ending government waste under new leadership.

Minnesota Fraud Scandal Sparks National Outrage

Federal prosecutors uncovered extensive fraud in Minnesota involving Somali-run childcare centers and nonprofits. Allegations indicate stolen taxpayer dollars exceed $9 billion. These schemes exploited federal funding for programs under Governor Tim Walz’s Democratic administration. Sponsors highlight this as rampant abuse, with Senator John Cornyn calling it unprecedented. American families suffer as resources meant for children vanish into fraudulent hands, fueling demands for accountability.

Fraud Accountability Act Details and Provisions

Senator Marsha Blackburn (R-Tenn.) introduced the Fraud Accountability Act in January 2026, with co-sponsors Senators John Cornyn (R-Texas), Tom Cotton (R-Arkansas), and Ted Budd (R-N.C.). The Senate bill is S.3606. Representative Buddy Carter (R-Ga.) filed the House companion. The legislation explicitly makes fraud a deportable offense under the Immigration and Nationality Act. It also enables denaturalization for naturalized citizens convicted of fraud or other deportable crimes.

This measure expands immigration enforcement tools for the first time targeting fraud directly. Blackburn states fraud equals theft from taxpayers, insisting perpetrators should face deportation. The bill addresses vulnerabilities in the system, as endorsed by NumbersUSA, which views immigration as a privilege, not a right. With Republican control of Congress, swift progress appears likely.

Roots in Biden-Era Policy Failures

The 2024 Biden administration eliminated a federal rule requiring childcare centers to verify child attendance for funding. Sponsors argue this change created prime opportunities for fraud. Minnesota discoveries followed, exposing schemes in childcare and nonprofits. Broader issues include Medicaid and Affordable Care Act fraud. The Government Accountability Office estimates annual federal fraud at $233-521 billion, underscoring the crisis.

President Trump responded decisively by freezing over $10 billion in federal grants across five states. This action targets misuse in state-administered programs, protecting taxpayer dollars. Under Trump’s leadership, such measures restore sanity after years of leftist overspending and lax oversight that burdened working Americans with inflation and debt.

Path Forward and Broader Implications

The bill remains in the introduction phase, with no committee hearings scheduled yet. If enacted, it creates new deportation grounds for non-citizens convicted of fraud. Naturalized citizens face denaturalization risks, setting a precedent for revoking status obtained through deceit. Taxpayers stand to benefit from recovered funds and prevented losses.

Senator Cornyn criticized Walz for deflecting blame amid the scandal. Representative Carter warned fraud schemes may have funded overseas terrorist activity. These steps reinforce conservative priorities: limited government, secure borders, and fiscal responsibility. They counter globalist policies that prioritized open borders over American workers and families.