The Trump administration has abruptly severed the financial lifeline for Minnesota’s childcare programs, citing “rampant fraud” in a move that reignites tensions with the Somali diaspora and echoes loudly across East Africa.

While officials frame the decision as a necessary fiscal correction, the freeze targets a state home to the largest Somali population in the U.S., turning a complex legal battle over stolen funds into a potent political weapon.

Turning Off the Spigot

Jim O’Neill, the deputy secretary of health and human services, announced the immediate suspension of federal funds on Tuesday. In a video statement, O’Neill declared the administration had “turned off the money spigot” in response to what he termed blatant corruption.

The scale of the alleged theft is staggering. Federal prosecutors have suggested that up to half of the roughly $18 billion (approx. KES 2.3 trillion) in federal funds allocated to Minnesota programs since 2018 may have been misappropriated.

This follows the high-profile “Feeding Our Future” scandal, where prosecutors secured 57 convictions for a scheme that siphoned $250 million (approx. KES 32.5 billion) from child nutrition programs during the Covid-19 pandemic.

Old Crimes, New Politics

While the Trump administration portrays this as a fresh discovery, the legal groundwork was laid long before the current White House transition. The fraud was first exposed and prosecuted under the Biden administration, with Minnesota Governor Tim Walz emphasizing that state authorities have spent years cracking down on the illicit networks.

However, the narrative shifted this week after a right-wing influencer’s video dispatch from Minneapolis went viral, prompting Homeland Security officials to physically inspect businesses and question workers. Analysts note the timing suggests a coordinated effort to pivot from judicial process to political theater.

• 2022: First indictments issued against 47 defendants in the Feeding Our Future scheme.
• 2024: Prosecutors secure convictions for 57 individuals involved in the theft.
• Dec 2025: Trump administration freezes all funding following social media pressure.

The East African Impact

For Kenyans and Somalis watching from Nairobi, the implications extend far beyond American domestic policy. Most of the defendants in the fraud cases are Somali Americans, a fact Donald Trump has seized upon to renew his calls for a ban on refugees from Somalia.

The former and current President has used these allegations to expand his long-running vendetta against Representative Ilhan Omar, the Minnesota Democrat and arguably the most visible member of the Somali diaspora globally.

With the funding freeze now in effect, the fear in Nairobi is that the actions of a few will be used to justify broader sanctions or immigration hurdles for thousands of law-abiding East Africans seeking opportunity abroad.