Herb Strentz was dean of the Drake School of Journalism from 1975 to 1988 and professor there until retirement in 2004. He was executive secretary of the Iowa Freedom of Information Council from its founding in 1976 to 2000.
A sign of our times: a satirical T-shirt from the RAYGUN store in Des Moines offers better perspective on a political controversy than you’ll get from a Congressional hearing or the vigilante operation of President Donald Trump and Elon Musk. Using humor—an alternative to despair—the T-shirt highlights one small aspect of Trump’s reckless, damaging first few weeks in office.
With so many issues, lies, and likely unconstitutional actions in play, where does one begin?
Let’s start with the Lutheran Crime Syndicate.
FALSE MONEY LAUNDERING CLAIMS
The T-shirt proclaims that the wearer is “Just another member of the/LUTHERAN CRIME SYNDICATE/ a diabolical group strengthening communities.” The satirical reference to a “crime syndicate” reflects the false claim that the nonprofit Lutheran Services in America engaged in criminal “money laundering” of federal funds to be used to aid the needy, refugees and immigrants.
Some background: Lutheran Services of America began in 1997 under the aegis of the two largest Lutheran agencies in the U.S.: the Evangelical Lutheran Church in America and the Lutheran Church-Missouri Synod. In Iowa alone those two operations have outposts in about 650 congregations. Some 270,000 Iowans who belong to those churches could be co-conspirators. The nonprofit Lutheran Services in Iowa is a branch of the national organization.
Alesia Frerichs, president and CEO of Lutheran Services of America, explained some of the good works these social ministries do in a recent statement on the impact of a federal funding freeze. Lutheran Services ranked number 21 in a Forbes 2024 ranking of the biggest, best, and most trusted 100 top charities in the U.S.
How was this supposed money laundering “uncovered” and “exposed”?
Michael Flynn, a retired army general and Trump associate who is a hatchet man for Musk’s Department of Government Efficiency (DOGE), accused Lutheran Services and other non-profits of using religion to engage in “money laundering.” Musk acted quickly to amplify the false claim. The Religious News Service reported: “Musk, who describes himself as a ‘cultural Christian,’ posted Flynn’s claim, saying, “the (DOGE) team is rapidly shutting down these illegal payments.”
One problem with this picture: how could a nonprofit organization engage in money laundering, given the rigorous demands for accountability that come with federal funding? Under federal and state statutes, money laundering is generally defined as “the process of illegally concealing the origin of money obtained from illicit activities… and converting the funds into a seemingly legitimate source, usually through a front organization.”
Predictably, Iowa’s all-Republican Congressional delegation has said and done little to challenge DOGE.
ABOUT LUTHERAN SERVICES OF IOWA AND SENATE FILE 223
Nicholas Wuertz, director of Immigrant & Refugee Community Services for Lutheran Services of Iowa, offered these thoughts on the organization’s work and the short-term impact of the rapid shutdown:
Refugee Resettlement is a public private-partnership between the US Department of State and non-profit organizations and local communities. LSI, congregations, and the state of Iowa have been involved in refugee resettlement work since after WWII and it was formalized as a federal program under the Refugee Act of 1980.
The Department of State reimburses LSI and other resettlement agencies to cover initial living expenses and costs in providing services for a family’s first 90 days…We pay for the expenses up front and then once we submit documentation of expenses that were paid for client expenses such as security deposit, rent, food, utilities as well as our staffing and operational costs, then LSI is able to get reimbursed by the Department of State.
LSI had projected to receive $2.4 million from the Department of State to serve 800 people across our Des Moines, Sioux City and Waterloo sites. LSI, our donors and partners had planned to contribute an additional $347,988 in private financial support, volunteer time, and in-kind donations. On Jan. 24, LSI received notice that the Department of State was ordering all resettlement agencies to stop providing services to recently arrived refugee families, and that federal funds for these services would no longer be available after that date. These federal funds are essential in helping new refugees build a stable foundation in their new communities through direct financial assistance and supportive services from LSI. As a result of this action, 191 individuals; 108 of whom are minors, are now at risk across LSI’s three resettlement locations in Des Moines, Sioux City, and Waterloo. 127 of these individuals have just arrived in the past 30 days.
Wuertz and Renee Hardman, the president and CEO of Lutheran Services of Iowa, spoke to the Iowa legislature’s International Relations Committee on February 19 about the crisis the nonprofit and its contractors now face. At the direction of Musk and Trump, the federal government refuses to provide promised reimbursement of at least $1.5 million in expenditures. That jeopardizes staff and services as well as assistance to those who desperately need it.
Robert Leonard wrote about one potentially helpful response to this mess in his Substack newsletter, Deep Midwest: Politics and Culture. Democratic State Senator Sarah Trone-Garriott introduced Senate File 223, which would appropriate $2.5 million from the state’s general fund to the Iowa Department of Health and Human Services. Under the bill, the state agency would distribute those funds to nonprofit agencies assisting in refugee resettlement operations in Iowa.
Trone Garriott said in a press release, “There are 891 refugees in Iowa, including 445 children, who have had the rug pulled out from under them and been left with nothing. No guidance, no help. Nothing. Iowans are better than that.”
She added, “These are people who have already gone through an extensive vetting process and have legal status. They come here with nothing but hope and our promise of a better life. We have to step up now.”
In an interview with Leonard, Trone Garriott said much more about our need to step up.
KIM REYNOLDS: “I CAN’T SPEAK TO THAT”
Meanwhile, Iowa Governor Kim Reynolds seeks to step away from five words she uttered at a February 5 hearing by the U.S. House of Representatives Committee on Oversight and Government Reform. Republicans who run that committee invited Reynolds to talk about how much efficiency she has accomplished by reorganizing Iowa state government. But Democrats on the panel pressed her on issues relating to her governance and about the Flynn/Musk allegation of “money laundering.”
U.S. Representative Raja Krishnamoorthi tried to get Reynolds to answer yes or no: is the Lutheran church a money-laundering operation? The governor first evaded the question and finally hedged: “I can’t speak to that.”
That may have wrapped up the matter for the Oversight Committee, but it drew a strong response from Iowans who expected more from the governor, as a report from KCCI-TV showed.
Iowa news media then reported on the governor’s efforts to “clarify” her position on Lutheran Services of Iowa. While insisting she fully supports and appreciates the work of that organization, she did not apologize for her weak response during the Congressional hearing.
Reporters did not ask Reynolds about this controversy during a February 10 press conference, but she brought up the topic near the end of that event. You can watch her “clarification” (which took some three-and a-half minutes), beginning at the 39:20 mark of this video. The Cedar Rapids Gazette transcribed part of those remarks.
“I want to be clear this morning that I absolutely do not think that Lutheran Services is a money laundering organization,” Reynolds said. “They provide a whole host of charitable services to hundreds of thousands of people. And it’s not just refugee resettlements they do. They do mental health work. They do foster care work. They make sure that our kiddos have the resources that they need to be successful.
“I have worked with them for years.”
Reynolds also claimed her answer to that question was “taken out of context.” She characterized some of the Democratic committee members as “screaming” and “ranting.” Perhaps she meant, “You had to be there.”
When Reynolds said, “I can’t speak to that,” she may have been afraid to express her support for Lutheran Services, given the criticism from Musk. Consider how obsequious the Republican Party has become, acting like courtiers in “King” Trump’s court. The U.S. Senate continues to confirm Trump cabinet appointees who will likely damage the nation.
As Republicans boast about tax cuts—saying little about the associated cuts to public services or the attacks on public education—I marvel at how little is said about private charities filling the gap. I have seen no news coverage mentioning that Lutheran Services of Iowa and similar programs do taxpayers a favor: they provide help to those who need it at lower costs than government would have to pay. That’s one reason groups like Lutheran Services got their contracts in the first place.
P.S.— RAYGUN’s founder and owner Mike Draper and his colleagues designed the Crime Syndicate T-shirt on their own, without checking with Lutheran Services of Iowa. They have done previous work for that organization, and Mike has donated to it. Herb Strentz has also made a contribution, as part of a men’s group at Faith Lutheran Church in Clive.
Neither Draper nor Strentz confesses to money laundering.