President Donald Trump on Wednesday night pledged to “get to the bottom” of alleged government fraud in Minnesota and other blue states during his New Year’s Eve celebration at Mar-a-Lago.
The president described the Minnesota case as a “giant scam,” claiming that taxpayer funds were stolen for an amount he stated as “$18 billion.” Trump asserted that the problem was not limited to Minnesota, adding that California, Illinois, and New York were also affected.
“Other than that, we’re going to have a great new year,” Trump said as he rang in 2026, framing the fraud investigation as a central focus of his second term. He emphasized that federal oversight would be tightened to ensure legitimate use of funds, particularly for childcare programs.
The remarks followed the White House’s announcement that it would freeze federal childcare funding nationwide until states could demonstrate proper expenditure. Deputy Health and Human Services Secretary Jim O’Neill had previously directed Minnesota to halt such payments as part of a broader crackdown on alleged fraud.
Trump’s comments coincided with an online investigation by influencer Nick Shirley, who claimed to find multiple closed or empty childcare centers in Minnesota during a weekday visit. Shirley accused Gov. Tim Walz, a Democrat, of enabling systems that allegedly misused taxpayer dollars, citing approximately $110 million in questionable spending.
Republicans have argued that the allegations highlight the need for federal accountability in states that resist oversight. Trump has long positioned himself as a critic of bureaucratic inefficiency and corruption in large blue-state programs tied to welfare assistance.
The president also vowed that the recovery effort would not be confined to Minnesota, stating: “It was a giant scam. Other than that, we’re going to have a great new year.”
