Trump targets alleged Minnesota fraud scheme during Mar-a-Lago event

President Donald Trump railed against alleged social services fraud in Minnesota during remarks at his New Year’s Eve celebration at Mar-a-Lago on Wednesday.

“Can you imagine they stole $18 billion,” Trump said. “That’s just what we’re learning about. That’s peanuts. And California is worse, Illinois is worse and sadly New York is worse.”

Trump continued, “We’re going to get to the bottom of all those. It was a giant scam.”

Trump added that he saw Rep. Tom Emmer, R-Minn., on television earlier Wednesday talking about the alleged fraud involving the Somali community.

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“He was talking about the Somalia population and not very nicely,” Trump said.

Trump’s comments came as Minnesota has been hit with widespread fraud allegations, with losses estimated at up to $1 billion, and federal prosecutors have indicted and charged dozens of people in connection with the alleged fraudulent activity.

White House press secretary Karoline Leavitt issued a stark warning Wednesday that “people will be in handcuffs” as fallout expands from widespread fraud allegations under Minnesota Gov. Tim Walz.

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“President Trump is not going to let Governor Walz off the hook,” Leavitt said on “Fox & Friends.”

Walz has come under scrutiny since the fraud issue came to light, and has publicly acknowledged the problem while pledging to address it, saying the situation “is on my watch” and that he is “accountable” for fixing it.

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Leavitt added that the Trump administration has increased federal resources to Minnesota, with multiple agencies conducting investigations relating to the alleged fraud.

On Tuesday, the U.S. Department of Health and Human Services said it would freeze all child care payments to Minnesota, amid mounting scrutiny over accusations of fraud involving child daycare centers across Minnesota.