Rep. Feenstra Introduces Bill to Block Welfare Recipients from Sending Money Abroad
Rep. Randy Feenstra introduced legislation to prevent people on public assistance from moving money overseas, citing taxpayer abuse and recent high-profile fraud scandals as primary motivations for the measure.
This week, U.S. Rep. Randy Feenstra (R-IA) unveiled the Law Prohibiting U.S. Overseas Employee Benefitsa bill that would prohibit people receiving public assistance from making international wire transfers. The legislation would also require money transfer providers to obtain written certification from customers that they are not in receipt of means-tested government welfare benefits.
“Minnesota’s $9 billion fraud scandal is a stark warning to the country that waste, fraud and abuse of taxpayer dollars remains a serious and endemic problem,” Feenstra said. “We cannot tolerate a single taxpayer dollar being wasted due to fraudulent activity by criminals. »
The legislation aligns with broader efforts by President Donald Trump’s administration to combat the misuse of taxpayer funds. On January 14, the US State Department announcement a freeze on visa processing for nationals of 75 countries identified as contributing to disproportionately high levels of welfare-dependent migration. The freeze affects countries including Somalia, Haiti, Iran and Eritrea, and is intended to prevent new arrivals from immediately becoming a financial burden on American taxpayers.
These actions follow the release of data by the Trump administration showing that more than 81 percent of migrant households in some countries – such as Bhutan, Yemen and Somalia – receive some form of welfare assistance upon resettlement in the United States. In Minnesota, where the ongoing fraud scandal has intensified, 81 percent of Somali-headed households receive welfare, compared to just 21 percent of native-born households.
Alongside these enforcement efforts, U.S. Treasury Secretary Scott Bessent on a ramp the federal government’s pursuit of fraudsters linked to the Minnesota scandal. The case involves allegations of money laundering, illegal use of federal social services funds and schemes in which daycares and food distribution centers allegedly received millions of taxpayer dollars without providing actual services. Last week, Bessent outlined plans to offer cash rewards to whistleblowers who provide credible information revealing fraud, including details such as who is involved, how it was carried out and where it occurred.
He also confirmed that the Treasury Department is conducting extensive investigations into four money services businesses that facilitate remittances from Minnesota residents to foreign countries, particularly Somalia. Although the companies were not named, Bessent said the companies were being scrutinized for their role in fraudulent transfers of taxpayer-funded benefits overseas. The ministry is investigating whether these financial service providers knowingly allowed people receiving public assistance to move money out of the country.
The legislative effort aims to codify Treasury Secretary Scott Bessent’s bill. push prohibit welfare recipients from making international wire transfers or sending money abroad. According to Feenstra, “if someone has enough money to send abroad, they should not be on welfare in the first place.”
The timing of his bill also comes as other lawmakers are pushing for reforms targeting flaws in welfare-related immigration policy. On January 8, Rep. Troy Nehls (R-TX) and Sen. Roger Marshall (R-KS) introduced The Public Charges Clarification Act of 2025, a bill that would strengthen restrictions on immigrants who may be dependent on public assistance, requiring them to demonstrate financial self-sufficiency and obtain sponsorship before obtaining legal status.
Feenstra stressed that the U.S. safety net remains particularly vulnerable to criminals who divert resources away from those who truly need them. “These programs are meant to be a temporary boost for our most vulnerable neighbors,” he said. “My bill codifies President Trump’s work to combat fraud while protecting Iowa taxpayers from the cost of foreign money transfers.”
