Walz proposes $10M business relief package as Republicans cry 'new avenue for fraud' in Minnesota

Minnesota Gov. Tim Walz faces criticism for proposing $10 million in small business relief after Trump's immigration crackdown amid fraud allegations.

Minnesota Gov. Tim Walz proposed a $10 million emergency relief package for small businesses impacted by the Trump administration’s immigration crackdown. (Jerry Holt/The Minnesota Star Tribune via Getty Images)

President Donald Trump previously claimed that fraud in Minnesota exceeded $19 billion.

Dozens of people have been prosecuted in Minnesota in recent years for alleged large-scale welfare fraud schemes involving food assistance and autism services. Federal prosecutors have alleged the schemes stole hundreds of millions of dollars from taxpayer-funded programs, with separate investigations also examining alleged fraud in the state’s daycare system.

House Majority Whip Tom Emmer, R-Minn. reacted to the governor's proposal on X, saying, "BREAKING: Tim Walz opens up a new avenue for fraud in Minnesota."

NOEM HAMMERS WALZ, FREY FOR IGNORING 1,360 ICE DETAINERS FOR CRIMINAL ILLEGAL ALIENS

Gov. Tim Walz unveiled an emergency loan plan tied to the economic impact of federal immigration enforcement under President Donald Trump. (Al Drago/Bloomberg via Getty Images and Tibrina Hobson/Getty Images)

The governor's office included a statement from Henry Garnica, the owner of CentroMex in East St. Paul, who said the past few months during the immigration operation have been "some of the hardest I’ve experienced as a business owner."

"Sales are down, we have limited hours, and we have had to change how we operate," he stated. That’s not who we are as a neighborhood store. This proposed forgivable loan package would give businesses like mine breathing room — to keep employees on payroll and keep our doors open. For some of us, it could mean the difference between surviving and closing for good."

On Thursday, Walz demanded that the federal government "pay for what they broke" after the Trump administration said it would draw down its presence in the Twin Cities.

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Walz said during a news conference that federal law enforcement’s presence in the state was leaving "deep damage" and "generational trauma."

Fox News Digital's Michael Dorgan contributed to this report.

Michael Sinkewicz is a writer for Fox News Digital. Story tips can be sent to michael.sinkewicz@fox.com

https://www.foxnews.com/politics/walz-proposes-10m-business-relief-package-republicans-cry-new-avenue-fraud-minnesota