Day: January 7, 2026
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Feds launch operation targeting Minnesota refugees for potential deportation amid fraud investigation
Federal immigration officials launch major operation in Minnesota to review refugee cases from travel ban countries, potentially leading to deportations.
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Trump administration sends Democrats into hysterics by freezing funding to 5 blue states over fraud concerns
President Donald Trump told reporters on Sunday that those responsible for the historic fraud in Minnesota — members of the Somali community in particular — aren’t just ripping off the Gopher State but the country at large.
“Think of it: $19 billion at least they’ve stolen from Minnesota and from the United States,” said Trump.
“We’re not going to pay it any more. We’re going to have [Gov. Tim] Walz go pay. We’re not going to pay them, and we’re not going to pay California, and we’re not going to pay Illinois.”
In the wake of the president’s remarks, the Trump administration cut off five Democrat-run states’ access to over $10 billion in federal child care and family assistance funds.
‘It’s a giant scam.’
On Tuesday, the Department of Health and Human Services announced that it had barred California, Colorado, Illinois, Minnesota, and New York from accessing nearly $2.4 billion in Child Care and Development Fund money; $7.35 billion in Temporary Assistance for Needy Family funds; and $869 million in Social Services Block Grant funds.
“Families who rely on child care and family assistance programs deserve confidence that these resources are used lawfully and for their intended purpose,” HHS Deputy Secretary Jim O’Neill said in a statement. “This action reflects our commitment to program integrity, fiscal responsibility, and compliance with federal requirements.”
HHS Assistant Secretary Alex Adams, the head of the Administration for Children and Families, emphasized the government’s responsibility to “ensure these programs serve the families they were created to help,” adding that “when there are credible concerns about fraud or misuse, we will act.”
Photo by Mandel NGAN/AFP via Getty Images
HHS indicated that the funding freeze will remain in place until the ACF completes a review and determines that the affected states are in compliance with federal requirements.
‘It’s cruel.’
Adams and O’Neill also announced on Tuesday that the Trump administration is ending Biden-era practices of providing child-care centers with payments up front without verifying attendance.
Democrats melted down over the funding pause, characterizing the effort to ensure taxpayer dollars aren’t siphoned away by fraudsters as an attack on children.
New York Gov. Kathy Hochul, whose state has seen its share of day-care fraud, said in response to the funding freeze, “It’s vindictive. It’s cruel. And we’ll fight it with every fiber of our being.”
Sen. Kirsten Gillibrand (D-N.Y.) tried downplaying the fraud, claiming that “this has nothing to do with fraud and everything to do with political retribution that punishes poor children in need of assistance.”
“Rather than making life easier and more affordable for our families, Donald Trump is stripping away child care from Illinois families who are just trying to go to work,” said Illinois Gov. J.B. Pritzker (D). “Thousands of parents and children depend on these child-care programs to help them make ends meet, and now their livelihoods are being put at risk.”
Colorado Sen. Michael Bennet, a Democrat with aspirations of becoming his state’s next governor, tweeted, “Donald Trump has declared war on Colorado. He is now robbing thousands of vulnerable Colorado families of the critical support they need to afford food, housing, and health care.”
Trump raised the matter of fraud in Minnesota during a New Year’s Eve event, then noted that “California is worse, Illinois is worse, and, sadly, New York is worse. A lot of other places. We’re going to get to the bottom of all of it. It’s a giant scam.”
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Fraud thrived under Democrats’ no-questions-asked rule
Democrats bear clear responsibility for Minnesota’s spiraling federal program payment scandal. Either they failed to conduct meaningful oversight of billions in public funds over many years — or they conducted none at all. Their early response to the scandal explains why: They subjected its perpetrators to an unconscionably low standard of scrutiny.
What began as a fraud investigation into federal programs meant to feed poor children has expanded rapidly. During the pandemic, a nonprofit called Feeding Our Future became the centerpiece of what federal prosecutors described as the largest COVID-era fraud scheme, involving roughly $300 million. That scandal soon widened to include fraud in autism services and housing programs. Now investigators allege that day-care centers billed taxpayers for caring for nonexistent children — one facility even displaying signage with a misspelling of “learning.”
No criminal enterprise of this size and duration emerges unless its participants believe they will not face consequences. Democrats let the fraud happen.
As revelations mount, consequences follow. Former vice presidential nominee Tim Walz abruptly abandoned his bid for a third term as Minnesota’s governor. Yet nothing suggests the full scope of the scandal has come into view, either geographically or financially.
The estimated cost continues to climb. Last summer, a federal prosecutor put the total at more than $1 billion. Just last month, First Assistant U.S. Attorney Joe Thompson warned the figure could reach $9 billion — and that estimate covers only the schemes already uncovered. As trials proceed, new defendants emerge, and plea deals surface, the total is likely to rise farther.
Instead of demanding answers, Democrats rushed to deflect scrutiny. In Seattle, newly elected mayor and self-described democratic socialist Katie Wilson inserted herself into the controversy by issuing a statement “on the harassment of Somali childcare providers” and posting a hotline number for alleged “hate crime” victims — before any comparable fraud investigation had even begun.
Minnesota Democrats adopted the same playbook. They framed oversight itself as “racism,” attempting to shut down inquiry by exaggeratedly embracing the broader Somali community from which many of the fraudsters came. That rhetorical move does more harm than good. It links an entire community to criminal activity — something Democrats appear not to mind if it shields them politically.
Lt. Gov. Peggy Flanagan illustrated the tactic in a video statement delivered while wearing a hijab: “I am incredibly clear that the Somali community is part of the fabric of the state of Minnesota.” Flanagan, notably, is also running for the U.S. Senate in 2026.
The symbolism revealed more than intended. Democrats did not merely treat the Somali community as “part of the fabric” of Minnesota. They treated fraud perpetrators as apart from the fabric — exempt from scrutiny, audits, and accountability.
RELATED: ‘More corrupt than Minnesota’: Trump mocks Newsom after launching California fraud investigation
Photo by MAURO PIMENTEL/AFP via Getty Images
Local reporting points to warning signs stretching back more than a decade. Yet Democrats allowed massive federal programs to operate under standards so lax that fraud flourished unchecked.
Despite their rhetoric of inclusion, Democrats effectively segregated oversight itself. They refused to apply basic accountability to billions in taxpayer dollars. At minimum, that constitutes gross incompetence.
The underlying reality is simpler. Democrats let the fraud happen. Whether through neglect or willful blindness, they allowed these programs to operate without serious supervision while evidence of abuse accumulated.
Fraud on this scale does not persist without a sense of impunity. That impunity may have grown gradually through years of nonexistent audits and rubber-stamped claims. Or it may have been reinforced more explicitly. Either way, no criminal enterprise of this size and duration emerges unless its participants believe they will not face consequences.
The precise nature of Democrat culpability remains to be determined. Was it incompetence? A DEI mindset that discouraged scrutiny? Political quid pro quos? Tim Walz’s sudden exit from the governor’s race suggests that the answers may prove damaging.
What is already clear is this: Minnesota’s fraud scandal did not happen in spite of Democratic governance. It happened because of it.
