Trump Targets Minnesota Fraud in New Year’s Remarks, Promises Fed Crackdown/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ President Trump accuses Minnesota of massive social services fraud, citing an alleged $18 billion loss in taxpayer funds. Federal audits and funding freezes are underway, including a halt on child care payments to Minnesota. Trump promises accountability and expanded investigations, targeting other states like California, Illinois, and New York.
Trump Targets Minnesota Fraud Allegations – Quick Look
- President Trump slammed Minnesota over alleged $18B social services fraud during his New Year’s Eve remarks.
- Federal agencies, including HHS, have launched investigations and frozen childcare payments to the state.
- Trump promised accountability, saying “people will be in handcuffs” as probes expand into other states.
Trump Targets Minnesota Fraud in New Year’s Remarks, Promises Fed Crackdown
Deep Look
Mar-a-Lago, Florida — During a New Year’s Eve address at his Mar-a-Lago estate, President Donald Trump slammed what he described as “massive fraud” in Minnesota’s social services system, pledging a federal crackdown and suggesting similar schemes are unfolding in other Democratic-led states.
“Can you imagine they stole $18 billion?” Trump said. “That’s just what we’re learning about. That’s peanuts. And California is worse, Illinois is worse, and sadly, New York is worse. We’re going to get to the bottom of all those. It was a giant scam.”
The president was referring to alleged abuse of federal child care and food aid programs in Minnesota — a controversy that has already led to dozens of indictments and federal charges in connection with the misuse of public funds.
Criticism of Minnesota Leadership
Trump’s remarks came amid ongoing investigations into a fraud scandal that has rocked Minnesota politics and drawn national scrutiny. The president made specific reference to Rep. Tom Emmer, R-Minn., who earlier in the day commented on the alleged misuse of aid connected to members of Minnesota’s Somali community.
“He was talking about the Somalia population and not very nicely,” Trump noted, without elaborating further.
Minnesota Gov. Tim Walz has acknowledged the scale of the fraud and admitted the problem developed under his watch. “This is on my watch,” Walz said recently. “I am accountable.”
White House: ‘People Will Be in Handcuffs’
White House Press Secretary Karoline Leavitt reinforced the administration’s stance Wednesday morning, warning that the Department of Justice and other agencies are “fully engaged” in investigations across the state.
“President Trump is not going to let Governor Walz off the hook,” Leavitt said on Fox & Friends. “People will be in handcuffs.”
She also confirmed that the administration has mobilized additional federal law enforcement resources in Minnesota and that multiple agencies, including the Department of Health and Human Services (HHS), are pursuing inquiries.
Child Care Funding Frozen
In a major move, the HHS announced Tuesday that it would freeze all federal childcare payments to Minnesota amid the ongoing scrutiny. The decision follows concerns that state-regulated daycare centers were central to the alleged fraud schemes, with millions of dollars suspected to have been siphoned off through false claims and shell operations.
The fraud allegations have not only raised questions about oversight under Governor Walz’s administration but also intensified political tensions, with Republicans accusing the state government of ignoring early warning signs.
Ongoing Fallout and Political Implications
House Republicans have formed a special investigative committee on Minnesota fraud, with its chair accusing Gov. Walz of “turning a blind eye” for years despite repeated red flags from watchdogs and whistleblowers.
While Trump’s comments were unscripted, they reflect his administration’s aggressive posture toward federal oversight and spending, especially in states he has repeatedly accused of mismanagement.
The president ended his remarks with a broader warning: “This is just the beginning. We are going to investigate, expose, and shut down these scams — not just in Minnesota, but wherever they are happening.”
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