Around 2,000 federal agents are being deployed to Minneapolis as part of the Trump administration’s latest effort to crack down on immigration, two law enforcement officials told CNN, while the city and its officials are reeling from a welfare fraud scandal that’s reaching a fever pitch this week. The Trump administration froze federal child care funds last week, and now, the president is stepping up immigration enforcement. Federal agents have already been on the ground in Minneapolis, and both Immigration and Customs Enforcement agents and U.S. Border Patrol agents are deploying to Minnesota. U.S. Customs and Border Protection Commander Gregory Bovino, whose controversial tactics have come under increased scrutiny in multiple cities, is also expected to deploy there.Uncertainty is sweeping Minnesota’s largest city as the fraud allegations prompt shakeups in local leadership, and a new, ambiguous immigration enforcement effort intimidating Somali residents has emerged. Here’s what we know.Deployment comes as Walz drops reelection bidThe mobilization of more agents to Minneapolis comes as Minnesota Gov. Tim Walz, who has been staunchly opposed to Trump’s deployment of troops to U.S. cities, dropped out of the race for reelection on Monday.The welfare-fraud scandal in his state has intensified into a political flashpoint seized upon by Trump, and its deepening federal probe complicated Walz’s bid for an unprecedented third term. He has not been accused of any wrongdoing, but Republicans have sought to blame Walz and Democrats for abuse of taxpayer dollars.It was the recent criticism from the Trump administration and right-wing allies that Walz said contributed to his decision not to seek reelection.“For the last several years, an organized group of criminals have sought to take advantage of this state’s generosity,” Walz said. “And even as we make progress in the fight against the fraudsters, we now see an organized group of political actors seeking to take advantage of a crisis.”Walz had been criticized for his administration’s oversight of the welfare programs. Several Democrats in the state privately cautioned Walz against seeking reelection as outrage intensified in Minnesota and beyond over the misuse of funds.In his brief appearance on Monday, Walz said he welcomed the federal investigation. He said it was imperative that Minnesotans had confidence in the state’s social safety net programs.Pushback anticipated over familiar ICE operation targeting SomalisThe 2,000 agent surge isn’t the first time federal immigration authorities have targeted the Twin Cities. In December, following Trump’s disparaging comments about Somalis and calls for them to leave the country, federal agents arrived in Minneapolis and St. Paul as part of the president’s wide-spanning deportation campaign.The operation sparked fear and anxiety for the area’s Somali community, the vast majority of whom are U.S. citizens. Nearly 58% of Somalis in Minnesota were born in the U.S., according to the U.S. Census Bureau. Of the foreign-born Somalis in Minnesota, an overwhelming majority – 87% – are naturalized U.S. citizens.The previous ICE operation sparked protests and tense standoffs with agents. In one incident that drew criticism from the Minneapolis police chief, an agent knelt on a woman’s back as she lay atop a snow bank and then tried to drag her to a car. The episode took place just a few miles from where George Floyd was killed by a city police officer kneeling on his neck in 2020.Americans of Somali descent told CNN they started carrying their passports and ID cards with them, scared they would be stopped by federal agents.This time around, DHS said it has run into trouble booking hotel rooms in Minneapolis for newly mobilized agents. It is alleged that global hotel chain Hilton launched a “coordinated campaign” to refuse service to agents by cancelling their room reservations in Minneapolis as the agency readies for escalated immigration enforcement there.Screenshots DHS posted on X on Monday afternoon appear to show emails from a Hilton address stating that immigration agents are not allowed to stay at the Hampton Inn Lakeville property, located in a suburb south of Minneapolis.”After further investigation online, we have found information about immigration work connected with your name, and we will be cancelling your upcoming reservation. You should see a proper cancellation email in your inbox shortly from Hilton,” one email reads.The Lakeville Hilton property is independently owned and operated by Everpeak Hospitality, which said in a statement on its website that the incident “was inconsistent with our policy of being a welcoming place for all,” and that it is “in touch with the impacted guests to ensure they are accommodated.”DHS Assistant Secretary Tricia McLaughlin rejected that statement, writing on X Monday evening that DHS and ICE haven’t heard from Everpeak Hospitality.Hilton itself, in a statement, emphasized that the independently owned and operated hotel’s actions “were not reflective of Hilton values.”Neither Hilton nor Everpeak Hospitality has confirmed the legitimacy of the email screenshots posted by DHS.Friday deadline looms amid frozen child care paymentsOn Dec. 30, Department of Health and Human Services Deputy Secretary Jim O’Neill announced the agency was freezing all child care payments to Minnesota amid the fraud allegations. The state typically receives about $185 million annually in federal child care funding, supporting care for 19,000 children.Investigators last week visited all of the child care centers accused of fraud in the video, and all were operating as expected, state officials say. Still, investigations into alleged wrongdoing are ongoing.The state Department of Children, Youth, and Families announced Monday it would conduct additional on-site compliance checks at child care centers across the state.”Funds will be released only when states prove they are being spent legitimately,” O’Neill said. He said he had demanded Walz provide a “comprehensive audit” of the centers featured in the video.The proof must be shared with the government by Friday, according to an email from state officials to child care providers. The email said HHS has requested specific details, including the total amount of Child Care and Development Fund payments received by five child care centers and administrative data – like names and social security numbers – for all recipients of federal money.The fund is the main source of federal support for child care and includes the state Child Care Assistance Program, which Nick Shirley, the creator of the viral video, alleged was being exploited in Minnesota.In the meantime, thousands of Minnesota families who rely on federal child care funding are in limbo. It is unclear how quickly funding could be restored if the state meets the Friday deadline.Trump has a long history with Minnesota, Somali communityThe child care fraud scandal has reignited the president’s persistent hostility toward Somalis. For years, he has attacked Somalis living in the U.S., Somalia itself, and Somali leaders like Rep. Ilhan Omar, whom he has said should not be allowed to serve in Congress.Somalia was also on the travel ban list during Trump’s first presidential term. Under the Obama administration, several Muslim-majority nations, including Somalia, were identified as “countries of concern” and subject to travel restrictions. Somalia had been added to address “the growing threat from foreign terrorist fighters,” according to a DHS statement. When Trump took office, the restrictions turned into a travel ban.He continued the attacks on Sunday when asked about the Minnesota fraud scandal, insulting Omar and going on a tangent about Somali pirates, while criticizing the “astronomical” theft of government funds.Somalis and their advocates point out that the small group of people charged with fraud doesn’t reflect their thousands-strong community.Jaylani Hussein, executive director of the Council on American-Islamic Relations’ Minnesota chapter, says there’s a clear motif when isolated instances of wrongdoing are used to scapegoat an entire population.”Each time, the same pattern emerges: isolate a case, generalize it to an entire group, and use fear to legitimize discrimination,” Hussein said.”The Somali community in the Twin Cities is overwhelmingly made up of hardworking families, small business owners, health care workers, students, and taxpayers who contribute every day to Minnesota’s economy and civic life,” he said.Allegations reach halls of Congress this weekThe fraud allegations will reach new heights in the halls of Congress this week as Minnesota state lawmakers are set to testify in Washington, D.C., on Wednesday before the Republican-led U.S. House Oversight Committee.The hearing, focused on “fraud and misuse of federal funds,” will feature testimony from three Republican members of the Minnesota House of Representatives who, the chairman of the Oversight Committee says, “sounded the alarm” on the fraud: Kristin Robbins, Walter Hudson and Marion Rarick.James Comer, a Kentucky Republican, invited Walz and Minnesota Attorney General Keith Ellison to testify in a separate hearing before the committee’s investigative panel on February 10, saying the governor “ignored” warnings of fraud from the state lawmakers.”He better lawyer up,” Comer wrote on X.”Tim Walz and Attorney General Keith Ellison have either been asleep at the wheel or complicit in a massive fraud involving taxpayer dollars in Minnesota’s social services programs,” Comer said in the statement.

MINNEAPOLIS —

Around 2,000 federal agents are being deployed to Minneapolis as part of the Trump administration’s latest effort to crack down on immigration, two law enforcement officials told CNN, while the city and its officials are reeling from a welfare fraud scandal that’s reaching a fever pitch this week.

The Trump administration froze federal child care funds last week, and now, the president is stepping up immigration enforcement. Federal agents have already been on the ground in Minneapolis, and both Immigration and Customs Enforcement agents and U.S. Border Patrol agents are deploying to Minnesota. U.S. Customs and Border Protection Commander Gregory Bovino, whose controversial tactics have come under increased scrutiny in multiple cities, is also expected to deploy there.

Uncertainty is sweeping Minnesota’s largest city as the fraud allegations prompt shakeups in local leadership, and a new, ambiguous immigration enforcement effort intimidating Somali residents has emerged. Here’s what we know.

Deployment comes as Walz drops reelection bid

The mobilization of more agents to Minneapolis comes as Minnesota Gov. Tim Walz, who has been staunchly opposed to Trump’s deployment of troops to U.S. cities, dropped out of the race for reelection on Monday.

The welfare-fraud scandal in his state has intensified into a political flashpoint seized upon by Trump, and its deepening federal probe complicated Walz’s bid for an unprecedented third term. He has not been accused of any wrongdoing, but Republicans have sought to blame Walz and Democrats for abuse of taxpayer dollars.

It was the recent criticism from the Trump administration and right-wing allies that Walz said contributed to his decision not to seek reelection.

“For the last several years, an organized group of criminals have sought to take advantage of this state’s generosity,” Walz said. “And even as we make progress in the fight against the fraudsters, we now see an organized group of political actors seeking to take advantage of a crisis.”

Walz had been criticized for his administration’s oversight of the welfare programs. Several Democrats in the state privately cautioned Walz against seeking reelection as outrage intensified in Minnesota and beyond over the misuse of funds.

In his brief appearance on Monday, Walz said he welcomed the federal investigation. He said it was imperative that Minnesotans had confidence in the state’s social safety net programs.

Pushback anticipated over familiar ICE operation targeting Somalis

The 2,000 agent surge isn’t the first time federal immigration authorities have targeted the Twin Cities. In December, following Trump’s disparaging comments about Somalis and calls for them to leave the country, federal agents arrived in Minneapolis and St. Paul as part of the president’s wide-spanning deportation campaign.

The operation sparked fear and anxiety for the area’s Somali community, the vast majority of whom are U.S. citizens. Nearly 58% of Somalis in Minnesota were born in the U.S., according to the U.S. Census Bureau. Of the foreign-born Somalis in Minnesota, an overwhelming majority – 87% – are naturalized U.S. citizens.

The previous ICE operation sparked protests and tense standoffs with agents. In one incident that drew criticism from the Minneapolis police chief, an agent knelt on a woman’s back as she lay atop a snow bank and then tried to drag her to a car. The episode took place just a few miles from where George Floyd was killed by a city police officer kneeling on his neck in 2020.

Americans of Somali descent told CNN they started carrying their passports and ID cards with them, scared they would be stopped by federal agents.

This time around, DHS said it has run into trouble booking hotel rooms in Minneapolis for newly mobilized agents. It is alleged that global hotel chain Hilton launched a “coordinated campaign” to refuse service to agents by cancelling their room reservations in Minneapolis as the agency readies for escalated immigration enforcement there.

Screenshots DHS posted on X on Monday afternoon appear to show emails from a Hilton address stating that immigration agents are not allowed to stay at the Hampton Inn Lakeville property, located in a suburb south of Minneapolis.

“After further investigation online, we have found information about immigration work connected with your name, and we will be cancelling your upcoming reservation. You should see a proper cancellation email in your inbox shortly from Hilton,” one email reads.

The Lakeville Hilton property is independently owned and operated by Everpeak Hospitality, which said in a statement on its website that the incident “was inconsistent with our policy of being a welcoming place for all,” and that it is “in touch with the impacted guests to ensure they are accommodated.”

DHS Assistant Secretary Tricia McLaughlin rejected that statement, writing on X Monday evening that DHS and ICE haven’t heard from Everpeak Hospitality.

Hilton itself, in a statement, emphasized that the independently owned and operated hotel’s actions “were not reflective of Hilton values.”

Neither Hilton nor Everpeak Hospitality has confirmed the legitimacy of the email screenshots posted by DHS.

Friday deadline looms amid frozen child care payments

On Dec. 30, Department of Health and Human Services Deputy Secretary Jim O’Neill announced the agency was freezing all child care payments to Minnesota amid the fraud allegations. The state typically receives about $185 million annually in federal child care funding, supporting care for 19,000 children.

Investigators last week visited all of the child care centers accused of fraud in the video, and all were operating as expected, state officials say. Still, investigations into alleged wrongdoing are ongoing.

The state Department of Children, Youth, and Families announced Monday it would conduct additional on-site compliance checks at child care centers across the state.

“Funds will be released only when states prove they are being spent legitimately,” O’Neill said. He said he had demanded Walz provide a “comprehensive audit” of the centers featured in the video.

The proof must be shared with the government by Friday, according to an email from state officials to child care providers. The email said HHS has requested specific details, including the total amount of Child Care and Development Fund payments received by five child care centers and administrative data – like names and social security numbers – for all recipients of federal money.

The fund is the main source of federal support for child care and includes the state Child Care Assistance Program, which Nick Shirley, the creator of the viral video, alleged was being exploited in Minnesota.

In the meantime, thousands of Minnesota families who rely on federal child care funding are in limbo. It is unclear how quickly funding could be restored if the state meets the Friday deadline.

Trump has a long history with Minnesota, Somali community

The child care fraud scandal has reignited the president’s persistent hostility toward Somalis. For years, he has attacked Somalis living in the U.S., Somalia itself, and Somali leaders like Rep. Ilhan Omar, whom he has said should not be allowed to serve in Congress.

Somalia was also on the travel ban list during Trump’s first presidential term. Under the Obama administration, several Muslim-majority nations, including Somalia, were identified as “countries of concern” and subject to travel restrictions. Somalia had been added to address “the growing threat from foreign terrorist fighters,” according to a DHS statement. When Trump took office, the restrictions turned into a travel ban.

He continued the attacks on Sunday when asked about the Minnesota fraud scandal, insulting Omar and going on a tangent about Somali pirates, while criticizing the “astronomical” theft of government funds.

Somalis and their advocates point out that the small group of people charged with fraud doesn’t reflect their thousands-strong community.

Jaylani Hussein, executive director of the Council on American-Islamic Relations’ Minnesota chapter, says there’s a clear motif when isolated instances of wrongdoing are used to scapegoat an entire population.

“Each time, the same pattern emerges: isolate a case, generalize it to an entire group, and use fear to legitimize discrimination,” Hussein said.

“The Somali community in the Twin Cities is overwhelmingly made up of hardworking families, small business owners, health care workers, students, and taxpayers who contribute every day to Minnesota’s economy and civic life,” he said.

Allegations reach halls of Congress this week

The fraud allegations will reach new heights in the halls of Congress this week as Minnesota state lawmakers are set to testify in Washington, D.C., on Wednesday before the Republican-led U.S. House Oversight Committee.

The hearing, focused on “fraud and misuse of federal funds,” will feature testimony from three Republican members of the Minnesota House of Representatives who, the chairman of the Oversight Committee says, “sounded the alarm” on the fraud: Kristin Robbins, Walter Hudson and Marion Rarick.

James Comer, a Kentucky Republican, invited Walz and Minnesota Attorney General Keith Ellison to testify in a separate hearing before the committee’s investigative panel on February 10, saying the governor “ignored” warnings of fraud from the state lawmakers.

“He better lawyer up,” Comer wrote on X.

“Tim Walz and Attorney General Keith Ellison have either been asleep at the wheel or complicit in a massive fraud involving taxpayer dollars in Minnesota’s social services programs,” Comer said in the statement.