Trump Unleashes Fury Over 'Giant Scam' as Feds Freeze Minnesota Child Care Funds Amid Billions in Alleged Fraud

MAR-A-LAGO, FL – Former President Donald Trump has ignited a political firestorm, railing against what he claims is a “giant scam” involving alleged social services fraud in Minnesota. Speaking off-the-cuff during his New Year’s Eve celebration at Mar-a-Lago, Trump asserted that a staggering $18 billion in taxpayer funds had been “stolen,” dramatically escalating the narrative around ongoing investigations.

Trump’s incendiary remarks come as the federal government takes decisive action, freezing all child care funding to Minnesota and ordering extensive audits. This aggressive federal response follows years of scrutiny and a growing number of indictments connected to widespread fraud allegations within the state’s social services system.

“Can you imagine they stole $18 billion,” Trump told guests on Wednesday, expressing disbelief at the alleged scale of the illicit activity. “That’s just what we’re learning about. That’s peanuts. And California is worse, Illinois is worse and sadly New York is worse.” He vowed a thorough investigation, declaring, “We’re going to get to the bottom of all those. It was a giant scam.” The former President also mentioned seeing Rep. Tom Emmer, R-Minn., on television earlier that day discussing the alleged fraud, specifically referencing the Somali community, a topic Trump noted Emmer addressed “not very nicely.”

These forceful comments from Trump underscore a deepening crisis in Minnesota, where federal prosecutors have already indicted and charged dozens of individuals. Official estimates of losses from the alleged fraudulent scheme, particularly involving child daycare centers, are believed to be up to $1 billion – a significant sum, though considerably less than Trump’s $18 billion claim. The U.S. Department of Health and Human Services (HHS) took a critical step earlier this week, announcing a complete freeze on all child care payments to Minnesota amidst mounting scrutiny.

White House press secretary Karoline Leavitt reinforced the administration’s tough stance, issuing a stark warning that “people will be in handcuffs” as the consequences of the widespread fraud allegations continue to unfold. Appearing on “Fox & Friends,” Leavitt emphasized, “President Trump is not going to let Governor Walz off the hook,” signaling a direct challenge to Minnesota’s leadership.

Minnesota Governor Tim Walz has found himself under increasing pressure since the fraud allegations came to light. While acknowledging the gravity of the situation, Walz has publicly pledged accountability, stating, “This is on my watch” and committing to rectify the systemic issues. Leavitt confirmed that the Trump administration has significantly ramped up federal resources to Minnesota, with multiple agencies actively engaged in investigations into the alleged misuse of taxpayer funds.

The controversy surrounding Minnesota’s social services fraud is expected to remain a prominent national issue, with federal investigations intensifying and political figures like Trump demanding immediate and comprehensive action to recover stolen funds and hold those responsible accountable.