Trump Administration Begins All-Hands-On-Deck Crackdown on Alleged Fraud in Minnesota and California

By Alex Johnson | Wednesday, 07 January 2026 01:39 PM EST

The Trump administration announced an “all hands on deck” strategy to address widespread alleged government fraud across multiple states, according to White House press secretary Karoline Leavitt.

Leavitt addressed the issue during a Wednesday press briefing when asked whether Minnesota Democratic Governor Tim Walz might have withdrawn from his reelection campaign due to an ongoing criminal investigation. She stated she was unaware of any such probe and emphasized she could not comment on its existence. However, Leavitt linked Walz’s political exit to a loss of public support within his state.

“I think Tim Walz probably dropped out of the race because he realizes he no longer has the support of the people of his own state,” Leavitt said. “This is a remarkable downfall considering he was the number two on the Democrat Party’s ticket just about a year ago.”

Leavitt stressed that the primary focus remains the extensive scale of fraud uncovered in Minnesota, where federal authorities have identified significant violations in Medicaid and other public programs designed to assist children and vulnerable citizens.

“When it comes to Minnesota, the fraud we have seen is really remarkable. It’s egregious,” she said, urging reporters to visit the state for firsthand coverage.

The administration has initiated a multi-agency sweep involving near-daily federal presence on the ground. Homeland Security Secretary Kristi Noem visited Minnesota on Tuesday, and Treasury Secretary Scott Bessent is scheduled to travel there later this week for meetings centered on fraud cases.

Leavitt reported that the Justice Department has charged 98 defendants in Medicaid fraud and related matters, with 64 convictions achieved so far. Of those charged, 85 were of Somali descent. Federal investigators have issued over 1,700 subpoenas, executed more than 130 search warrants, and added additional prosecutors to manage the growing caseload.

The Department of Homeland Security is conducting “door-to-door” operations and has deployed approximately 2,000 agents to Minneapolis for law enforcement and immigration purposes. Additionally, federal oversight has been tightened across spending programs nationwide.

Health and Human Services now requires justification and photo evidence for all child care payments, with Minnesota mandated to conduct a full audit of its child care centers. The administration froze $185 million in child care funding for the state.

CMS Administrator Dr. Mehmet Oz notified Governor Walz that federal authorities will begin auditing Medicaid recipients and delay payments suspected of being tied to waste, fraud, or abuse. Other agencies are reviewing Minnesota’s unemployment program, Supplemental Nutrition Assistance Program (SNAP) recertification, public housing, and Small Business Administration lending.

The administration has also suspended nearly 7,000 borrowers in the SBA lending program amid fraud allegations.

Leavitt noted that President Trump directed federal agencies to investigate spending programs nationwide, including in California. “This is going to be an all-hands-on-deck, government-wide effort,” she said. “Not just Minnesota, but also in the state of California, to identify fraud and to prosecute to the fullest extent of the law all those who have committed it.”