Hennepin County, Minnesota, shut down a $2 million relief fund after more than 200 applications were flagged for potential fraud, according to reporting cited by Fox News.
The program was intended to help businesses allegedly affected by immigration enforcement actions connected to President Donald Trump’s immigration crackdown. Hennepin County includes Minneapolis.
More Than 200 Applications Flagged
County officials reportedly received about 300 applications for the fund. Only 82 applicants were cleared, receiving roughly $500,000 in assistance.
Reviewers found applications that used identical, AI-generated language on behalf of different businesses, according to the report. County investigators also conducted site visits and found that some businesses listed in applications did not appear to exist.
Commissioner Cites “New Normal” for Government Programs
Hennepin County Commissioner Jeffrey Lunde said the county stopped processing applications after officials saw the number of legitimate claims decline.
“Clearly, fraud and people who want to commit it are still very active, as they do not fear the penalty,” Lunde said, according to the source report. “Thanks to county staff and our partner, we were able [to] thwart these efforts by devoting more time and effort to tighter oversight, in-person inspections and increased scrutiny. As the fraudsters continue their efforts, we need to ramp up our game as well. This is the new normal for all levels of government in Minnesota.”
County Says Fraudulent Claims Did Not Receive Funds
The county said no taxpayer money was lost to fraudulent applicants because the applications were caught during review.
The Hennepin County Sheriff’s Office has been asked to review the applications for possible criminal charges, according to the report. Lunde also said state lawmakers may need to tighten the law around attempted grant fraud.
About $1.5 million remains from the original fund. According to the report, the remaining money is expected to be redirected toward lower-risk business support, including consulting, marketing assistance and flexible financing.
