WASHINGTON, D.C. (Northern News Now) – Rep. Pete Stauber (R–Minn), who represents Minnesota’s 8th Congressional District, introduced legislation Thursday that would increase penalties for childcare providers convicted of defrauding a key federal childcare funding program.
The bill, titled the “Stop Fraud by SOMALIA Act”, targets fraud involving the Child Care and Development Block Grant (CCDBG) program, which helps support childcare assistance nationwide. Stauber’s office said the proposal follows recent reports of widespread fraud within Minnesota childcare assistance programs.
In a statement announcing the bill, Stauber said taxpayers “deserve to know their hard-earned dollars are supporting legitimate services.” He also criticized Minnesota Gov. Tim Walz and Attorney General Keith Ellison, arguing state leaders failed to respond adequately to alleged fraud.
“Taxpayers in Minnesota and across the country deserve to know their hard-earned dollars are supporting legitimate services and not lining the pockets of Somali fraudsters. My bill imposes tough penalties for those who exploit our public programs, including serious immigration consequences for non-citizens. For too long, Tim Walz and Keith Ellison failed to act, and credible reports suggest their offices may have even enabled these criminals. When state leaders won’t do their jobs, the federal government must step in to provide commonsense reforms that protect our programs and hold violators accountable, and this bill does just that.”
Stauber has previously pointed to outside reporting and social media coverage as helping drive attention to the issue. In February, he invited YouTuber Nick Shirley and independent journalist Davich Hoch to the president’s State of the Union address, crediting Shirley’s reporting for, he said, helping shed light on concerns in Minnesota and pushing for greater transparency.
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Nick’s hands-on reporting helped to expose billions of taxpayer dollars that were being stolen by fraudsters. His work has led to real accountability, helped to freeze wasteful spending, and shed a light in Minnesota where transparency was needed. Thank you, Nick for joining me… pic.twitter.com/nZjqLbF86e
— Pete Stauber (@RepPeteStauber) February 24, 2026
“Nick Shirley and David Hoch did the state of Minnesota a tremendous service by highlighting just how much fraud was allowed to occur under Tim Walz and Keith Ellison’s watch,” said Congressman Pete Stauber.
“By revealing stunning levels of obvious fraud to the American people, Nick and David did more work and showed more transparency than the Minnesota Department of Human Services. It is deeply concerning that private citizens, and not the Walz Administration, were the ones to reveal the true extent of the problem. Exposing the fraud, however, is only the first step. Minnesotans now want to see full accountability. Until then, faith in these institutions will not be restored.”
What the bill would do
Stauber’s legislation includes several enforcement provisions aimed at preventing providers convicted of fraud from returning to publicly funded childcare programs and requiring repayment of misused funds.
According to Stauber’s office, the bill would:
Permanently debar providers convicted of fraud from all federally funded childcare assistance programs.Require full restitution, directing states to reimburse the U.S. Department of Health and Human Services for funds obtained fraudulently.Mandate referral for federal criminal investigation, calling for automatic referral to the U.S. Department of Justice for prosecution and additional scrutiny.Add immigration-related consequences for non-citizen providers convicted of fraud or involved in terrorism-related activity, including potential grounds for inadmissibility or deportation and limits on asylum or adjustment of status.What’s next
The bill’s introduction begins the legislative process in the U.S. House of Representatives. It will need to move through committee review before it can be considered by the full House.
Stauber’s office did not provide an estimate of the amount of alleged fraud tied to Minnesota programs in the announcement.
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