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President Donald Trump denounced allegations of social services fraud in Minnesota during his speech at the New Year’s celebration at Mar-a-Lago on Wednesday.
“Can you imagine they stole $18 billion,” Trump said. “That’s exactly what we’re learning. It’s peanuts. And California is worse, Illinois is worse and unfortunately New York is worse.”
Trump continued: “We’re going to get to the bottom of this. It was a giant scam.”
Trump added that he saw Rep. Tom Emmer, R-Minn., on television earlier Wednesday talking about the alleged fraud involving the Somali community.
PICTURES FROM VP WALZ Touting’S DEBATE ON STATE SUPPORT FOR DAY CARE GOES VIRAL AMID MINNESOTA FRAUD ALLEGATIONS
President Donald Trump speaks to guests during a New Year’s event at his Mar-a-Lago home on December 31. (Joe Raedle/Getty Images)
“He was talking about the Somali people, but not very kindly,” Trump said.
Trump’s comments come as Minnesota is hit by widespread fraud allegations, with losses estimated at $1 billion, and federal prosecutors have indicted and indicted dozens of people in connection with the alleged fraudulent activity.
White House press secretary Karoline Leavitt issued a stark warning Wednesday that “people will be in handcuffs” as fallout from widespread fraud allegations under Minnesota Gov. Tim Walz spreads.
CHAIRMAN OF MINNESOTA FRAUD BOARD CLAIMS WALZ ‘TURNED HIS EYES’ ON FRAUD WARNINGS FOR YEARS
President Donald Trump arrives to speak at a campaign event Friday, Dec. 19, 2025, in Rocky Mount, North Carolina. (AP Photo/Alex Brandon)
“President Trump is not going to let Governor Walz get away with this,” Leavitt said on “Fox & Friends.”
Walz has faced increased scrutiny since the fraud issue came to light and has publicly acknowledged the problem while pledging to resolve it, saying the situation “is on my watch” and he is “responsible” for resolving it.
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Gov. Tim Walz has been under scrutiny since the fraud problem came to light in Minnesota. (Al Drago/Bloomberg via Getty Images)
Leavitt added that the Trump administration has increased federal resources for Minnesota, with multiple agencies conducting investigations into the alleged fraud.
On Tuesday, the U.S. Department of Health and Human Services announced it would freeze all payments for child care services in Minnesota, amid increased scrutiny over fraud accusations involving child care centers across Minnesota.
