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U.S. Representative Randy Feenstra has put forward a new legislative proposal aimed at curbing the misuse of public funds. The initiative, driven by concerns over taxpayer exploitation and recent significant fraud cases, seeks to restrict individuals receiving public aid from sending money internationally.
Representative Feenstra, a Republican from Iowa, introduced the No American Benefits Abroad Act this week. The proposed law intends to ban international wire transfers by those on public assistance and would mandate money transfer services to obtain written confirmations from customers that they do not receive government welfare benefits.
Feenstra highlighted the urgency of his proposal by pointing to a $9 billion fraud case in Minnesota, describing it as a glaring reminder of the ongoing and pervasive issue of taxpayer money being misused. “The misuse of even a single dollar of taxpayers’ money due to fraudulent activities is unacceptable,” he emphasized.
This legislative effort aligns with broader measures taken during President Donald Trump’s administration to limit taxpayer fund abuse. Earlier, on January 14, the U.S. State Department announced a pause on visa processing for nationals from 75 countries known for high levels of welfare-dependent immigration, including Somalia, Haiti, Iran, and Eritrea. This action aims to ensure that new immigrants do not immediately become financial burdens.
Data released by the Trump administration underscored the issue, revealing that over 81 percent of migrant households from certain countries, such as Bhutan, Yemen, and Somalia, rely on welfare assistance after settling in the U.S. In Minnesota, where the fraud scandal has intensified, 81 percent of Somali households receive welfare, a stark contrast to the 21 percent of native-born households in the state.
In response, U.S. Treasury Secretary Scott Bessent has intensified efforts to track down fraudsters implicated in the Minnesota case. This scandal involves accusations of money laundering and the illicit use of federal human services funds, with some daycare and food-distribution centers allegedly pocketing millions without delivering services. Recently, Secretary Bessent announced plans to incentivize whistleblowers with cash rewards for credible information that reveals the mechanics and participants of these fraudulent activities.
He also confirmed that the Treasury Department is conducting in-depth investigations into four money services businesses that facilitate overseas remittances from Minnesota residents to foreign countries, particularly Somalia. While the businesses were not named, Bessent indicated that these firms are being scrutinized for their role in enabling fraudulent transfers of taxpayer-funded benefits overseas. The department is reviewing whether these financial services providers knowingly allowed individuals on public assistance to funnel money out of the country.
The legislative effort seeks to codify Treasury Secretary Scott Bessent’s push to ban welfare recipients from initiating international wire transfers or sending money abroad. According to Feenstra, “if someone has enough money to send to foreign countries, they should not be on welfare in the first place.”
The timing of his bill also comes as other lawmakers push for reforms targeting shortcomings in welfare-related immigration policy. On January 8, Rep. Troy Nehls (R-TX) and Sen. Roger Marshall (R-KS) introduced the Public Charge Clarification Act of 2025, a bill that would strengthen restrictions on immigrants likely to rely on public assistance, requiring them to demonstrate financial self-sufficiency and secure sponsorship before being granted legal status.
Feenstra underscored that the American safety net remains especially vulnerable to criminals who divert resources away from those truly in need. “These programs are supposed to be a temporary hand-up for our most vulnerable neighbors,” he said. “My bill codifies President Trump’s work to combat fraud while protecting Iowa taxpayers from footing the cost of foreign money transfers.”
