After Somali fraud scandal, VA Democrat pushes bill killing oversight of nonprofits
Delegate Jessica Anderson's HB 1369 comes after Minnesota's 'Feeding Our Future' scandal led to around 78 people being federally charged
Treasury Secretary Bessent announces new enforcement measures targeting Minnesota fraud scandal
Treasury Secretary Scott Bessent, on the ground in Minnesota, discussed the Trump administration’s efforts to combat a sweeping fraud scheme. (Credit: The Department of the Treasury)
A Democratic Virginia lawmaker is backing a bill that would ban the state from verifying a nonprofit’s eligibility to provide and receive federal taxpayer benefits, a move that comes as scrutiny over the misuse of taxpayer funds continues to intensify.
The introduction of House Bill 1369 by Virginia Democratic state Del. Jessica Anderson came in the wake of a massive fraud scandal involving nonprofits in Minnesota and amid pressure by the Trump administration for states to enact better oversight of how taxpayer money is spent.
"No state agency responsible for the administration of federal funds shall impose a requirement on a nonprofit charitable organization providing a federal public benefit to determine, verify, or otherwise require proof of eligibility of any applicant for such benefits," the one-page bill states.
MINNESOTA’S ANTI-FRAUD SPENDING HAS QUIETLY BALLOONED, LEAVING TAXPAYERS TO PAY FOR FAILURE TWICE
Virginia Del. Jessica Anderson has proposed a bill that would ban Virginia from verifying a nonprofit’s eligibility to provide and receive federal taxpayer benefits. (Virginia General Assembly ; Virginia Rep. Jessica Anderson / Fox News)
Fox News Digital has reached out to Anderson's office.
The scrutiny over taxpayer funds doled out to nonprofits has increased following the burgeoning fraud scandal in Minnesota in which billions of dollars were lost due to fraud tied to the state's Somali community.
In December, the Justice Department announced that at least 78 people had been charged in the "Feeding Our Future" scandal – named for the Somali-linked nonprofit that allegedly bilked the coffers of St. Paul, Minnesota and Washington.
ONE CHART LAYS BARE THE SPRAWLING FRAUD NETWORK MINNESOTA OFFICIALS MISSED
Virginia Gov. Abigail Spanberger speaks at a rally in Richmond, Virginia. (Win McNamee / Getty Images)
Nearly 40 people had by then pleaded guilty.
The defendants were accused of faking invoices, attendance records and distribution of meals in low-income and other affected areas around Minnesota.
Following the scandal, the Trump administration sent federal authorities to crack down on businesses engaging in fraudulent activity in Minnesota.
In addition to Anderson's bill, newly sworn-in Democratic Virginia Gov. Abigail Spanberger has ushered in a new host of progressive policies that have been heavily criticized by Republicans, including repealing an executive action by her predecessor that now forbids local and state law enforcement from cooperating with federal immigration authorities.
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She also reduced mandatory minimum sentences for various crimes and has prioritized Diversity, Equity and Inclusion (DEI) in government contracting, as well as raising taxes.