Bessent says ‘there is nothing constant’ about the prevalence of fraud in Minnesota
‘Varney & Co.’ host Stuart Varney discusses the Trump administration’s effort to crack down on fraud in Minnesota and California.
Treasury Secretary Scott Bessent announced a new set of enforcement measures Friday aimed at identifying and investigating fraud as the Minnesota scandal, involving multiple government benefit scams, continues to rock the country.
Bessent, who is based in Minnesota, said the Trump administration will not leave “unchanged” in the recovery of taxpayer dollars, pointing to the increased use of the IRS, audits of financial institutions and new investigations into the misuse of nonprofit tax credits and the time of the pandemic.
BESSENT SAYS MINNESOTA RETURN COULD HELP TRUMP’S $1.5T DEFENSE PLAN
Scott Bessent, US Treasury Secretary, said the Trump administration would leave ‘things unchanged’ in recovering money from the Minnesota fraud scandal. (Eric Lee/Bloomberg via Getty Images/Getty Images)
“The Ministry of Finance will use all the tools and all the tools to end this undetected crime and hold the perpetrators to account,” Bessent told reporters during a press conference. “Minnesota will serve as a genesis and research base for other states,” he added.
A Quality Learning Center in Minnesota has been caught in the middle of an alleged child care fraud in the state. The signs had a typo. (Madelin Fuerste / Fox News Channel / Fox News)
Bessent’s comments come amid a fraud scandal in Minnesota that has drawn national attention and is estimated to involve at least $9 billion in misappropriated funds. Minnesota Gov. Tim Walzof the Democratic Alliance, announced Monday that he will not run for re-election amid increasing scrutiny of the administration’s handling of the case.
The preschool, Childcare Learning, has signs with a typo and has closed.
MINNESOTA’S FAILURE SPENDING IS SILENT, LEAVING TAXPAYERS PAYING FOR DOUBLE FAILURE.
He also said that the Treasury has identified at least four financial services businesses in Minneapolis-St. Paul are being investigated for their possible role in the fraud scheme. Besent declined to identify the companies, citing the sensitivity of the ongoing investigation.
“These businesses were responsible for complying with anti-money laundering laws, and they will be held accountable for all the crimes they committed,” said Bessent, noting that no charges have been filed and that the businesses have been notified that they are being investigated.
ONE CHART CREATES ANOTHER STORY OF MINNESOTA FIELDS WRONG
Minnesota Governor Tim Walz has announced that he will no longer be able to run for office because of the Minnesota fraud scandal. (Stephen Maturen / Getty Images / Getty Images)
When pressed about Walz’s possible involvement in the fraud and whether it was directed overseas, Bessent declined to provide further details.
“We still don’t know the depth, breadth, or level of collusion involved in this financial crisis that Governor Walz allowed to happen, even if it was directed overseas,” Bessent said.
The Treasury said more details will be revealed as the investigation continues, suggesting more disclosures and possible enforcement action in the coming weeks or months.
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Scott Bessent, US Treasury Secretary, outlines the Trump administration’s priorities for dealing with the Minnesota fraud scandal during an event at the Economic Club of Minnesota in Golden Valley, Minnesota on Thursday, Jan. 8, 2026. (Ben Brewer/Bloomberg/Getty/Getty Images)
Speaking at the Minnesota Economic Club on Thursday, Bessent described the amount of federal funds and taxpayer dollars lost in the program as one of “too many.” bad welfare scams in the history of our nation so far.”
He said President Donald Trump’s proposed $1.5 trillion increase in defense spending could be achieved if the federal government successfully recovers money collected through fraud, waste, and abuse, pointing to welfare fraud investigations as a source of funding.
