Tim Walz has triggered Republicans and Donald Trump supporters with his recent announcement. As rumours of the President’s immigration crackdown in Minnesota coming to an end circulate, Walz, the state’s governor, has proposed a $10 million relief fund for small businesses.
According to Market Realist, his program will cater to all those immigrant-owned businesses that have been affected by the ICE operations in Minnesota.
Republicans have slammed Tim Walz over this proposal, citing that it could result in potential fraud. The fear comes amid reports of several fraudulent scandals in Minnesota, including alleged Somali-run day-care schemes.
Previously, Donald Trump claimed that these fraudulent activities in the state have cost taxpayers over $19 billion, as reported by The New York Post.
When people are afraid to go to work, afraid to shop, or afraid to gather in their community, it hurts families, neighborhoods, and our entire economy.
If you can, show up for a small business and let’s continue to show the nation what it means to respond with care and decency. pic.twitter.com/0UlRMxZZLi
— Governor Tim Walz (@GovTimWalz) February 11, 2026
The new proposal says that the administration would provide loans ranging from $2500 to $25,000 to Minnesota businesses that can “demonstrate substantial revenue loss during specified dates.”
These loans will also be forgivable. Political commentators are concerned that Walz’s proposal could lead to even more theft and fraud activities in the North Star state.
House Majority Whip Tom Emmer (R-Minn.) wrote on X (formerly Twitter), “BREAKING: Tim Walz opens up a new avenue for fraud in Minnesota.” Republican state Sen. Michael Holmstrom tweeted, “MN taxpayers do not deserve to have more money stolen from them.”
“Does that include learning centers?” wrote Rep. Eli Crane (R-Ariz.), referring to the recent daycare fraud in Minnesota. “Al Shabaab already shopping for some new white BMWs back in Mogadishu,” Republican strategist Matt Whitlock mockingly wrote, referring to the same scandal.
BREAKING: Tim Walz opens up a new avenue for fraud in Minnesota. https://t.co/Z9vKlMr7aG
— Tom Emmer (@GOPMajorityWhip) February 12, 2026
However, it’s not just Republican politicians who are unhappy with Tim Walz’s proposal. Bill Walsh, who is the vice president of the Center of the American Experiment, also expressed dissatisfaction with the Minnesota Governor’s announcement.
He reportedly said, “It’s right on brand for Tim Walz to first scare workers and shoppers from leaving their homes before proposing a new government program to help them that will likely end up adding to our state’s fraud epidemic.”
David Thul, a political activist in Minnesota, asked, “How about a law that says the Walz admin can spend a dollar on these loans for every dollar they recoup from fraud investigations?”
It’s safe to say that there are more critics than supporters as Walz comes up with this new loan proposal. Given the history of Minnesota and federal funds, it will be interesting to see whether Walz’s plan goes the right way.
Meanwhile, he is still being scrutinized over the Somali-run daycare fraud. House chairwoman Lisa McClain slammed, “Let’s be clear: Tim Walz has stolen money FROM American kids and given it to Somali fraudsters. House Republicans will hold him accountable.”
