Category: Treasury department
‘Financial calamity’: Bessent blasts Minnesota Democrats’ massive fraud fiasco, launching sweeping interventions
Treasury Secretary Scott Bessent held a press conference on Friday to address the rampant fraud in Minnesota that has exploded in headlines over recent weeks.
“I am optimistic that we are going to put an end to this waste, fraud, and abuse, that we are going to have recoveries for the American people, and that we are going to hold people accountable, set an example, and make sure that federal aid gets to the people it was intended for and not to these fraudsters,” Bessent stated.
He hammered the state’s left-wing leaders, including Gov. Tim Walz (DFL), for forcing residents to endure their “egregious negligence” and allowing taxpayer-funded welfare fraud to “spiral out of control.”
“Billions of dollars intended for hungry children, housing for disabled seniors, and services for children with special needs, were diverted to people who cheated the system — some of whom are not even American citizens,” Bessent continued.
Minnesota fraudsters stole at least $300 million in taxpayer funds intended for children in need, the secretary estimated.
He announced that the Treasury Department is actively investigating these issues, confirming that some of the funds could have been transferred out of the country to terrorist organizations, such as Somali-based al-Shabaab.
President Donald Trump, Treasury Secretary Scott Bessent. Photo by SAUL LOEB/AFP via Getty Images
Bessent assured the American people that President Donald Trump and his entire administration are committed to “restoring accountability” and putting Minnesota “back on the right track.”
In response to the pervasive fraud schemes, Bessent announced several new initiatives, including investigations into money service businesses that may have transferred funds overseas, a geographic targeting order for Hennepin and Ramsey Counties that lowers the reporting threshold for overseas transfers to $3,000, and a new IRS task force to investigate COVID-era fraud.
Additionally, he noted that the Financial Crimes Enforcement Network issued an alert to financial institutions to help them identify and report fraud tied to federal child nutrition programs. The Treasury Department is also training Minnesota law enforcement officials on how to detect such schemes.
“We will not let the incompetents and recalcitrants of Governor Walz stop law enforcement from holding these perpetrators accountable,” Bessent declared.
The new protocols placed on Minnesota will serve as a “genesis and a launching pad” for a national rollout.
RELATED: Bessent delivers bad news to Somalis on welfare: No more wire transfers to the homeland
Minnesota Gov. Tim Walz. Photo by Stephen Maturen/Getty Images
A reporter pressed Bessent about Walz’s potential role in the state’s failure to identify and stop the fraud.
“We are actively pursuing all leads to see the level of involvement, whether it’s limited to just negligence and incompetence, or is something more than that,” Bessent responded.
When asked whether Somali government officials directed their citizens to relocate to Minnesota to exploit vulnerable systems, or whether the fraudsters were acting on their own, Bessent replied, “We do not know the depth, breadth, and collusion in this financial calamity that Governor Walz has allowed to have happen.”
“Was this directed from overseas? Is it an endogenous flourishing of these fraudsters that Governor Walz allowed to grow right here in the backyard and take advantage of hardworking people of Minnesota? We’ll see. … We will get to the bottom of it,” he continued.
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‘Blind allegiance’: Thune lays into blue states passing up Trump tax relief
With major tax breaks just around the corner, Senate Majority Leader John Thune reveals the real reason Democrats are skipping out on major tax breaks.
Several blue states across the country are opting out of the major tax breaks promised in President Donald Trump’s One Big Beautiful Bill Act, including provisions like deductions for seniors and no tax on tips. These tax breaks are set to go into effect on January 1, 2026.
‘They are doing it because of Trump derangement syndrome or a blind allegiance to high-tax policies.’
These policies are popular across the political spectrum, yet Democrats are depriving their constituents of the opportunity to reap the benefits. Some of these states include Colorado, Illinois, New York, and Maine, as well as Washington, D.C.
The Treasury Department called this a deliberate act of “partisan stonewalling,” suggesting Democrats are denying their constituents crucial financial relief.
RELATED: Blue-state ‘Grinches’ are stealing your tax relief, says Treasury Secretary Bessent
Photo by Kevin Dietsch/Getty Images
“This partisan stonewalling is a direct assault on the very families and workers liberal politicians claim to champion,” the department stated. “By denying their residents access to these important tax cuts, these governors and legislators are forcing hardworking Americans to shoulder higher state tax burdens, robbing them of the relief they deserve and exacerbating the financial squeeze on low- and middle-income households.”
Thune echoed the department’s concerns, saying Democrats are getting in the way of overdue tax relief for millions of hardworking Americans.
“Affordability starts with more money in your pocket,” Thune told Blaze News. “Republicans passed the Working Families Tax Cuts so that every working family, regardless of where they live, can have more money and new opportunities to get ahead.”
“It is outrageous that Democrat politicians would try to stop seniors, tipped workers, and people who work overtime from receiving this historic tax relief,” Thune added.
Photo by Andrew Harnik/Getty Images
Thune speculated that the Democrats’ refusal to embrace even Trump’s most popular policies is rooted in an inexplicable “blind allegiance” to high taxes, or just plain old Trump derangement syndrome.
“Whether they are doing it because of Trump derangement syndrome or a blind allegiance to high-tax policies, Democrat leaders like Governor Mills, Hochul, and Pritzker are making explicitly clear that Democrats prioritize high taxes and regulatory burdens over the financial well-being of the people they represent,” Thune added, referring to Governors Janet Mills of Maine, Kathy Hochul of New York, and J.B. Pritzker of Illinois.
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