6 min read
President Donald Trump delivered the State of the Union address to a joint session of Congress in the House chamber at the U.S. Capitol Tuesday. (Alex Brandon/Associated Press)

During Tuesday’s State of the Union address, President Donald Trump accused members of Maine’s Somali community of committing fraud on a level that’s “even worse” than what’s being alleged in Minnesota.

Trump targeted Maine, in addition to California and Massachusetts, about 50 minutes into his nearly two-hour speech in which he announced that Vice President JD Vance would spearhead the administration’s “war on fraud.”

“There has been no more stunning example than Minnesota, where members of the Somali community have pillaged an estimated $19 billion dollars from the American taxpayer,” Trump said, eliciting howls of protest from some Democrats. “The number is actually much higher than that, and California, Massachusetts, Maine and many other states are even worse.”

Trump said the “war on fraud” began four months ago. It’s unclear whether the administration planned to escalate its focus on Maine, where his administration flagged $45 million of possibly improper Medicaid payments earlier this year. Last year, the state stopped payments to one provider, citing “credible fraud allegations.”

The White House did not offer evidence of the alleged fraud or answer questions about the specifics of Trump’s “war on fraud,” but a spokesperson provided a statement that addressed the topic generally.

President Donald Trump delivers the State of the Union address Tuesday night to a joint session of Congress in the House chamber at the U.S. Capitol as Vice President JD Vance and House Speaker Mike Johnson applaud. (Mark Schiefelbein/Associated Press)

“President Trump and his entire administration remain committed to stopping fraud,” said White House spokeswoman Abigail Jackson. “The administration’s efforts have already been fruitful, with ongoing investigations and important actions to ensure American dollars aren’t being stolen, and we’re just getting started.”

Advertisement

Vance said in an interview Wednesday morning with Fox News that the administration is taking a “whole government approach” to investigating fraud, including tasking the Treasury Department with examining income tax records and having the U.S. Department of Justice jail fraudsters. The leader of a new DOJ division, the National Fraud Enforcement Division, had a confirmation hearing in the Senate on Wednesday.

“There’s a whole host of tools that we have that have never been used,” Vance said. “We’re going to work on that very aggressively over the next year.”

Vance then followed up that statement with a Wednesday afternoon news conference, where he was joined by Dr. Mehmet Oz, the administrator for the U.S. Centers for Medicare and Medicaid Services. Oz said the federal government would hold off on hundreds of millions in Medicaid payments to Minnesota until the state enacts a corrective action plan.

“Minnesota’s not alone, although they are the first to receive this action,” Oz said.

The Trump administration’s initiative drew swift criticism from Gov. Janet Mills, a Democrat and frequent Trump antagonist.

“This so-called ‘war on fraud’ is really a war on those who dare to stand up to Trump’s abuses of power,” Ben Goodman, a spokesperson for Mills, said in a written statement. “Addressing allegations of fraud should be a joint effort between the state and federal government — not a political cudgel from a president desperately trying to distract from his failed agenda.”

Advertisement

Meanwhile, Sen. Susan Collins, whom Mills hopes to challenge in the November U.S. Senate race, praised Trump’s effort.

“We simply cannot afford to have Medicaid funding ripped off and diverted by scam artists and fraudsters,” Collins said in a written statement. “It is not fair to the law-abiding taxpayer.”

Collins also called on state officials to cooperate with investigators. State House Minority Leader Rep. Billy Bob Faulkingham, R-Winter Harbor, also praised the decision, saying he looked forward to the results of the administration’s work.

Democrats in Maine’s congressional delegation had mixed reactions to Trump’s anti-fraud effort.

“The state has compelling enough evidence for fraud that it’s started suspending some payments, and I think it’s awful that anyone would be ripping off Medicaid,” Rep. Jared Golden, D-2nd District, said in a written statement. “I support efforts to crack down on that kind of corruption.”

Rep. Chellie Pingree, D-1st District, said in a written statement that fraud should be taken seriously and prosecuted based on evidence. But she said Trump’s efforts to collectively blame Somali immigrants is “vile, racist and profoundly dangerous.”

Advertisement

Pingree noted that Trump has used similar claims to justify targeted immigration sweeps, including those by U.S. Customs and Border Protection and Immigration and Customs Enforcement.

“Announcing a so-called ‘war on fraud’ — to be led by JD Vance — is pretty rich coming from the most corrupt administration in American History,” Pingree said. “I have no idea what it means or what it will entail. But the president has already used claims of alleged fraud to justify ICE and CBP’s brutal terror campaign in Minnesota and Maine, and to freeze child care funds and threaten programs families rely on. This is about intimidation and political theater, not accountability.”

The administration conducted an aggressive immigration enforcement campaign in Maine at the end of January. “Operation Catch of the Day” targeted over 1,400 immigrants and resulted in about 200 detentions, the administration said.

A recent survey by the University of New Hampshire found that, while 65% of Mainers said illegal immigration was a concern in the U.S., 51% said ICE actions under Trump have made the country less safe, and 49% said ICE should be abolished.

Maine’s immigration sweep came around the same time the U.S. Office of Inspector General released a report alleging $45 million in improper payments for autism support services in Maine’s Medicaid program, known as MaineCare.

The Mills administration responded to the report by saying the inspector general findings didn’t include “any findings or allegations of fraud” or accuse any providers of “intentional wrongdoing.” The report only flagged “potential documentation and compliance issues,” state officials noted.

Advertisement

Maine’s surge followed a similar crackdown in Minnesota, where, beginning in the Biden administration, prosecutors have accused members of the Somali community of defrauding the Medicaid program. Trump’s January enforcement operation led to the deaths of two American citizens, prompting the administration to reduce the number of agents there.

Earlier this month, Oz said Maine and Minnesota share similar worrying patterns that could be indicative of fraud. Both states have treatment centers clustered in a central location, and both saw a rapid increase in payouts, Oz alleged.

Oz also sent a five-page letter to the Mills administration requesting information about the payments and the state’s oversight of the program.

Mills said Oz’s communication with the state was another “political attack” by the administration.

Conservative media outlets have been reporting about allegations of welfare fraud in Maine and Minnesota for months. In December, national conservative outlets picked up a 6-month-old story from the Maine Wire, a conservative website, about fraud allegations made by a former state worker.

The state stopped payments to one provider, Gateway Community Services, later that month, citing “credible fraud allegations” uncovered in a “comprehensive, multiyear” audit of the agency that began in January 2023.

Gateway was founded and is led by Abdullahi Ali, a Somali American who last year ran for office in Jubaland, a state in his home country. The agency’s attorney has denied wrongdoing and has said the company is working with the state.

The payment stoppage was announced the day after the Republican-led U.S. House Committee on Oversight and Government Reform requested financial information from the Treasury Department about the group, which was included in a list of “organizations of interest and persons of interest” in the Minnesota investigations.

This story contains reporting from The Associated Press

Randy Billings is a government watchdog and political reporter who has been the State House bureau chief since 2021. He was named the Maine Press Association’s Journalist of the Year in 2020. He joined...

Join the Conversation

Please your Sun Journal account to participate in conversations below. If you do not have an account, you can register or subscribe. Questions? Please see our FAQs.