Why Refugee Flood Isn’t a Smart Policy
The saga of federal benefits fraud in Minnesota is still being told. Democrat Gov. Tim Walz dropping out of his bid for reelection to a third term is only the latest chapter.
Reports of fraud in child care operations, and the connection to Twin Cities’ Somali immigrants, go back almost a decade. But state politicians and the legacy media initially ignored or downplayed the story, probably because most of the perpetrators were from a minority that carries “intersectional” clout in woke circles and electoral clout for Democrats.
In 2025, the magazine County Highway reported in depth on the scam, followed by the City Journal, and finally even The New York Times. Walz, who has been in power for nearly eight years, tried to shift blame away from himself and from Somalis on to President Donald Trump and conservatives for noticing. It didn’t work.
But there’s an underlying story that is no less important: the much larger cost of absorbing millions of low-skilled immigrants.
Back in 2016, George Borjas of Harvard wrote that, “the higher cost of all the services provided to immigrants and the lower taxes they pay (because they have lower earnings) inevitably implies that on a year-to-year basis immigration creates a fiscal hole of at least $50 billion.”
Because most Somali immigrants came to the U.S. as refugees or on family reunification visas thereafter, they are an........
