Legislation to Curb International Transfers by Welfare Recipients
Representative Randy Feenstra has put forward a new bill aimed at stopping individuals on welfare from sending money overseas. His focus seems to stem from concerns over taxpayer abuse and recent fraud scandals that have caught attention nationwide.
This week, Feenstra, a Republican from Iowa, introduced the “Act Prohibiting American Benefits Abroad.” The proposal bans welfare recipients from initiating international wire transfers. Additionally, it would require money transmitters to obtain written confirmation that their customers aren’t receiving government benefits.
“The $9 billion fraud scandal in Minnesota serves as a serious warning about the misuse of taxpayer dollars,” Feenstra remarked. He made it clear that any loss of taxpayer money due to fraudulent activities is unacceptable.
The initiative aligns with broader measures taken during President Trump’s administration aimed at restricting misuse of taxpayer funds. On January 14, the U.S. Department of State declared a freeze on visa applications for nationals from 75 countries identified as having disproportionately high levels of welfare-dependent immigration. Countries like Somalia, Haiti, Iran, and Eritrea are included in this freeze, intended to minimize new burdens on U.S. taxpayers.
Actions were informed by data indicating that over 81 percent of immigrant households from certain nations, including Bhutan, Yemen, and Somalia, received welfare upon resettlement in the U.S. For instance, in Minnesota, 81 percent of Somali households are on welfare, which starkly contrasts with only 21 percent of native-born households.
In tandem with these initiatives, U.S. Treasury Secretary Scott Bessent has ramped up efforts to track down fraudsters related to the Minnesota scandal. Allegations include money laundering and the misuse of federal welfare funds, with concerns about daycares and food distribution centers that reportedly received millions without providing real services. Bessent also announced plans to reward whistleblowers who share credible information about such activities.
Moreover, Bessent mentioned that the Treasury Department is investigating four money services that help residents of Minnesota send money to foreign countries, mainly Somalia. While the companies haven’t been named, there seems to be scrutiny into whether they enabled the fraudulent transfer of taxpayer-funded benefits abroad.
This legislative effort appears to back Secretary Bessent’s initiative to restrict welfare recipients from sending money outside the country. Feenstra stated, “People who can afford to send money abroad shouldn’t be on welfare in the first place.”
The timing of this legislation also coincides with other lawmakers advocating for reforms targeting weaknesses in welfare-related immigration policies. On January 8, Representative Troy Neals and Senator Roger Marshall proposed the Public Charge Clarity Act of 2025, which aims to impose stricter requirements on immigrants likely to depend on public assistance, including proof of economic self-sufficiency.
Feenstra highlighted that America’s safety net is vulnerable to criminals diverting resources from those who genuinely need assistance. “These programs are meant to provide temporary relief for our most vulnerable neighbors,” he asserted. He emphasized that this bill formalizes efforts to combat fraud while safeguarding Iowa taxpayers from the costs incurred by foreign remittances.
