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A massive fraud scandal tied to taxpayer-funded daycare, Medicaid and social services programs in Minnesota — involving potentially billions of dollars in suspicious billing — is prompting renewed scrutiny of whether some naturalized Americans obtained U.S. citizenship under false pretenses and whether denaturalization could now be used more aggressively.

The fallout has already led the Department of Health and Human Services to freeze certain childcare payments to Minnesota, citing alleged fraud involving daycare providers throughout the past decade.

Immigration authorities have confirmed they are reviewing whether fraud uncovered in Minnesota could provide the legal basis to revoke U.S. citizenship from naturalized individuals who concealed or misrepresented material facts during the immigration process.

Denaturalization is legally constrained, requires individualized civil court proceedings and historically has been used sparingly.

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Attorney David Schoen said it remains legally viable but under extraordinary circumstances.

He said on Fox News the process would likely trigger "significant" court challenges but "it is legally possible. In an extraordinary circumstance, we'd have to know the facts."

Quality Learning Center in Minnesota was found at the center of an alleged childcare fraud scandal in the state. (Madelin Fuerste / Fox News Channel)

Schoen emphasized that immigration law already provides clearer mechanisms for removing noncitizens, particularly lawful permanent residents who violate the law, describing denaturalization as a far more extraordinary step requiring fact-specific scrutiny.

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White House press secretary Karoline Leavitt said on "Fox & Friends" that the administration is "not afraid to use denaturalization," and confirmed that the Department of Homeland Security (DHS) and the State Department are "looking at" whether citizenship could be revoked in connection with those of Somali origin in the Minnesota fraud probe.

DHS confirmed it is actively reviewing immigration and naturalization cases involving migrants from 19 countries of concern, including Somalia, to determine whether any individuals obtained U.S. citizenship through fraud that could warrant denaturalization.

"Under U.S. law, if an individual procures citizenship on a fraudulent basis, that is grounds for denaturalization," DHS Assistant Secretary Tricia McLaughlin said in a statement to Fox News.

The review focuses on whether fraud occurred during the immigration or naturalization process, including false statements or marriage fraud used to obtain legal status or citizenship. DHS stressed that denaturalization is governed by strict legal standards and applies only under limited circumstances.

President Donald Trump weighed in on the Minnesota investigations Wednesday, sharply criticizing the state’s handling of fraud and linking the scandal to illegal immigration in a Truth Social post.

"Much of the Minnesota Fraud, up to 90%, is caused by people that came into our Country, illegally, from Somalia," Trump wrote.

"Lowlifes like this can only be a liability to our Country’s greatness," he added. "Send them back from where they came, Somalia, perhaps the worst, and most corrupt, country on earth."

Federal prosecutors say their investigation has expanded to suspicious billing across 14 Medicaid-funded programs, where providers billed about $18 billion since 2018. A preliminary assessment cited by prosecutors suggests "half or more" of that amount could be fraudulent.

The widened probe builds on yearslong scrutiny of Minnesota following some of the largest benefit-fraud cases ever prosecuted in the state, including a pandemic-era food aid scheme involving roughly $250 million in alleged losses. Federal officials say those cases exposed systemic weaknesses in oversight that may extend across multiple aid programs.

Quality Learning Center manager Ibrahim Ali denied any fraud took place, despite a recent report by independent journalist Nick Shirley. (Pool)

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Minnesota is home to one of the largest Somali communities in the country. Census Bureau–based estimates suggest roughly 260,000 people of Somali descent live in the U.S. and close to 100,000 are in Minnesota.

Republican lawmakers argue that fraud on such a scale raises broader questions about whether individuals involved were truthful throughout the immigration process — and whether citizenship should shield offenders who obtained it through deception.

House Majority Whip Tom Emmer, R-Minn., called for the deportation of all Somali immigrants involved in fraud cases in Minnesota.

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"I have three words regarding Somalis who have committed fraud against American taxpayers: Send them home. If they’re here illegally, deport them immediately; if they’re naturalized citizens, revoke their citizenship and deport them quickly thereafter. If we need to change the law to do that, I will," he wrote on X.

The renewed focus on denaturalization also aligns with broader efforts inside the Trump administration to tighten the naturalization process itself.

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U.S. Citizenship and Immigration Services Director Joseph Edlow has previously criticized the current citizenship test as "too soft," calling for deeper civics knowledge and more rigorous English evaluation throughout the naturalization interview.

Historically, the federal government has pursued only a small number of denaturalization cases each year. Civil liberties groups warn that expanding its use could raise due-process concerns, teeing up a potential legal battle.