President Donald Trump didn’t hold back as he rang in the New Year at Mar-a-Lago, using his New Year’s Eve remarks to shine a spotlight on what he described as massive social services fraud in Minnesota—because starting the year calling out corruption is apparently controversial now.
During the celebration, Trump reacted bluntly to the scale of the alleged fraud. “Can you imagine they stole $18 billion?” he said. “That’s just what we’re learning about. That’s peanuts.” And in case anyone thought Minnesota was an outlier, Trump added that California, Illinois, and New York are “worse”—a statement that likely shocked exactly no one who’s been paying attention.
Trump made it clear that this administration has no intention of letting the issue fade away. “We’re going to get to the bottom of all those,” he said, calling the situation a “giant scam.” No political gymnastics, no vague promises—just a straightforward message about accountability.
He also referenced comments made earlier in the day by Rep. Tom Emmer, R-Minn., whom Trump said he saw on television discussing the alleged fraud involving the Somali community. Trump noted that Emmer “was talking about the Somalia population and not very nicely,” a remark that underscored just how tense and serious the issue has become.
Minnesota has been hit with widespread fraud allegations, with estimated losses reaching up to $1 billion. Federal prosecutors have already indicted and charged dozens of individuals connected to the alleged schemes, signaling that this isn’t just talk—it’s an active and expanding legal crackdown.
White House press secretary Karoline Leavitt reinforced that point with a stark warning, saying “people will be in handcuffs” as the fallout continues. She made it clear President Trump is not letting Minnesota Gov. Tim Walz “off the hook,” a refreshing departure from the usual culture of excuses and finger-pointing.
Gov. Walz has since come under heavy scrutiny and has publicly acknowledged the problem, stating the situation “is on my watch” and that he is “accountable” for fixing it. Accountability is a good first step—now comes the part where results actually matter.
Leavitt also confirmed that the Trump administration has increased federal resources to Minnesota, with multiple agencies conducting investigations into the alleged fraud. The consequences are already tangible: the U.S. Department of Health and Human Services announced it would freeze all childcare payments to Minnesota amid growing scrutiny over fraud accusations involving daycare centers across the state.
As Trump made clear, this administration is serious about exposing waste, fraud, and abuse—no matter the state or the political discomfort it causes. With investigations intensifying and accountability firmly on the table, the message heading into the New Year is clear: the era of unchecked fraud is coming to an end, and that’s a strong way to start the year.
