President Donald Trump denounced alleged social services fraud in Minnesota during his New Year’s Eve celebration at Mar-a-Lago on Wednesday.
“Can you imagine if they stole $18 billion,” Trump said. “That’s exactly what we’re learning about. That’s peanuts. And California is worse, Illinois is worse and unfortunately New York is even worse.”
Trump continued: “We’re going to get to the bottom of this. It was a massive scam.”
Trump added that he saw Rep. Tom Emmer, R-Minn., on television earlier Wednesday talking about the alleged fraud involving the Somali community.
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“He was talking about the Somali people and it wasn’t very nice,” Trump said.
Trump’s comments came as Minnesota has been hit by widespread allegations of fraud, with losses estimated at $1 billion, and federal prosecutors have indicted and charged dozens of people in connection with the alleged fraudulent activities.
White House Press Secretary Karoline Leavitt sharply warned Wednesday that “people are going to be in handcuffs” as fallout mounts from widespread fraud allegations under Minnesota Governor Tim Walz.
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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 will not leave Governor Walz alone,” Leavitt said on Fox & Friends.
Walz has been under scrutiny since the fraud issue came to light, and has publicly acknowledged the problem while vowing to address it, saying the situation is “under my watch” and that he is “responsible” for resolving it.
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Gov. Tim Walz has been under scrutiny since the Minnesota fraud issue came to light. (Al Drago/Bloomberg via Getty Images)
Leavitt added that the Trump administration has increased federal resources for Minnesota, with multiple agencies conducting investigations related to the alleged fraud.
On Tuesday, the U.S. Department of Health and Human Services said it would freeze all child care payments to Minnesota amid mounting criticism over allegations of fraud involving day care centers across Minnesota.
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