President Trump Is Rooting Out Fraud and Restoring Accountability
January 12, 2026
As we entered the new year, disturbing reports emerged from Minnesota about what may be one of the largest social services fraud schemes in American history. Federal prosecutors allege that stolen taxpayer dollars could exceed $9 billion.
Independent journalist Nick Shirley broke this story wide open when he visited nearly a dozen child care centers across Minneapolis. What he found was shocking: Despite raking in tens of millions in taxpayer dollars, these facilities were empty. No children. No cars in parking lots. Hardly any staff to answer the door.
But the child care scheme represents only one part of Minnesota's widespread fraud. Under state Democrat leadership, billions were stolen by front groups pretending to provide social services while pocketing the money. The Trump administration has spent months targeting this network, bringing dozens of criminal indictments. The alleged crimes are staggering in their scope.
Up to $250 million disappeared through the Feeding Our Future program, where fraudsters claimed to provide thousands of daily meals to needy children. Instead, they spent taxpayer dollars on luxury vehicles and real estate. Tens of millions were stolen through Minnesota's Medicaid Housing Stabilization Services program, designed to help people with disabilities. In another case, a woman paid parents to enroll children in her fraudulent autism therapy program, even though most children weren't diagnosed with autism.
The last two examples could help explain why Minnesota has the second highest per enrollee Medicaid spending under Obamacare: federal taxpayer dollars are underwriting nonexistent services and treatments.
How could this happen? How did no one notice? The answer is simple. Much of the fraud was committed by members of Minnesota's Somali community, which maintains close ties to the state's Democrat machine—so Democrats appear to have looked the other way.
To make matters worse, the Biden administration eliminated critical safeguards to prevent fraud. In 2024, Biden scrapped a rule requiring child care centers to verify that children actually attended their facilities to receive federal funding, rolling out the red carpet for fraudulent applications. His administration paid out more than $19 billion to day care centers without any verification whatsoever.
Fortunately, President Trump and his administration are working to ensure these fraudsters face justice and prevent future abuse. Federal authorities are on the ground in Minnesota identifying and arresting criminals. President Trump has frozen more than $10 billion in federal funding for social services programs to Minnesota and other states—California, Colorado, Illinois, and New York—all plagued by fraud.
The message is clear: If these states want federal taxpayer dollars, they must prove they have adequate safeguards against fraud. With the spotlight on his failures, Democrat Governor Walz announced he won't seek reelection. But dropping out isn't enough. Minnesotans deserve his immediate resignation.
This crisis extends far beyond Minnesota. California's nonpartisan auditor found that eight state agencies face "high risk" of waste, fraud, and abuse, yet they've taken zero corrective action. The state risks losing billions in food assistance, unemployment benefits, and Medicaid. In New York, Republican lawmakers are demanding an independent spending audit following multiple fraud scandals, including Brooklyn scammers who used two adult day care facilities to steal $68 million from the state's Medicaid homecare program. A state comptroller's audit revealed New York provided over $500 million in Medicaid benefits to out-of-state residents.
Illinois's auditor general discovered the government paid out more than $5 billion in fraudulent unemployment insurance. Last month, the Trump administration indicted two men outside Chicago who submitted nearly $300 million in fraudulent claims to Medicare, Medicaid, and private insurers.
While President Trump works to end this taxpayer abuse, Congress must support his efforts. Last week, I introduced the Fraud Accountability Act, which would amend the Immigration and Nationality Act to explicitly make fraud a deportable offense. If you come to our country to steal from the American people, you should be swiftly deported. And if you've somehow gained American citizenship, you should be stripped of it.
Every member of Congress should support this legislation. Hardworking taxpayers deserve to know their money goes to those who truly need it, not to criminals gaming the system. The era of rampant fraud is over, and under President Trump, we are putting the American people first.