President Donald Trump used part of his New Year’s Eve remarks at Mar-a-Lago to spotlight allegations of widespread fraud in Minnesota’s social services programs, framing the issue as emblematic of broader failures in state-administered aid systems.
Speaking off the cuff to guests, Trump pointed to what he described as massive taxpayer losses tied to child care and community assistance programs. “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.”
He characterized the situation as “a giant scam” and promised intensified scrutiny, adding, “We’re going to get to the bottom of all those.”
🚨 JUST IN: President Trump is GOING NUCLEAR on the Somali fraud, says it's DEFINITELY worse in California and New York
"They stole $18 BILLION dollars. That's just what we're learning about!"
"CA is worse, IL is worse, NY is worse."
"We're gonna GET THAT MONEY BACK." 🔥 pic.twitter.com/sdLRSPi2hR
— Eric Daugherty (@EricLDaugh) January 1, 2026
The president’s remarks come as federal authorities ramp up investigations into alleged fraud in Minnesota, where dozens of indictments have already been filed over misused funds connected to programs such as child nutrition and daycare assistance, Fox News writes. A federal prosecutor recently suggested that significant portions of billions of dollars distributed through state-run programs since 2018 may have been diverted through fraudulent schemes.
White House press secretary Karoline Leavitt underscored the administration’s posture during a television appearance Wednesday. “President Trump is not going to let Governor Walz off the hook,” Leavitt said on “Fox & Friends.” She pointed to expanded involvement from multiple federal agencies and warned that “people will be in handcuffs” as the investigations move forward.
Amid the escalating scrutiny, the U.S. Department of Health and Human Services announced earlier this week that it is pausing childcare funding payments to Minnesota while additional audits and reviews are conducted.
Minnesota Gov. Tim Walz has faced mounting questions over the administration of the programs during his tenure. He has acknowledged the seriousness of the allegations, describing the matter as occurring “on my watch” and stating that he bears responsibility for addressing the failures. The former Democratic nominee for vice president will be heading to Capitol Hill to testify about the fraud occurring all over his state after receiving a subpoena from the House Oversight Committee.
Federal actions now underway include expanded audits, increased investigative resources from multiple departments, and ongoing prosecutions tied to the alleged fraud schemes, as the administration signals that further accountability efforts are forthcoming.
