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Jan 07, 2026

Trump Announces Federal Fraud Investigation Into CA After Minnesota Scandal-lllllllllll

President Donald Trump announced Tuesday that a federal investigation into alleged fraud in California has begun, signaling a widening crackdown after similar revelations of systemic abuse in Minnesota’s state-run childcare programs

 

 

 

 

 

 

 

 

“California, under Governor Gavin Newscum, is more corrupt than Minnesota, if that’s possible,” Trump wrote on Truth Social, using a mocking version of Gov. Gavin Newsom’s name. “The fraud investigation of California has begun.”

Trump did not immediately provide details about the scope of the California probe, but the declaration comes less than 24 hours after his administration froze all federal childcare payments to Minnesota amid reports that Somali-run daycare and healthcare operators stole more than $9 billion in taxpayer funds.

The president’s new statement marks the first time California has been formally linked to the widening federal effort to track down fraudulent spending in social programs. His comments follow a series of public warnings to Democratic governors he accuses of mismanaging state welfare systems.“Tim Walz destroyed Minnesota,” Trump said Monday, “but Newsom, Pritzker, and Hochul have done, in my opinion, an even more dishonest and incompetent job.

Federal officials have not released specifics of the California case, though multiple law enforcement and oversight agencies have been mobilized in recent days following the Health and Human Services Department’s announcement of a nationwide anti-fraud sweep.

HHS Deputy Secretary Jim O’Neill confirmed Tuesday that the agency has “turned off the money spigot” to Minnesota and imposed new nationwide verification measures to prevent further abuse of taxpayer funds.

“You have probably read the serious allegations that the state of Minnesota has funneled millions of taxpayer dollars to fraudulent daycares across Minnesota over the past decade,” O’Neill said. “Today we have taken three actions against the blatant fraud that appears to be rampant in Minnesota and across the country.”

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