December 31, 2025 • 10 mins
- Main Allegation: Widespread fraud in Minnesota’s childcare programs, allegedly involving fake daycare centers and misuse of federal funds over the past decade.
- Federal Response:
- The Trump administration froze $185 million in federal childcare funds to Minnesota.
- Actions announced by Deputy Secretary Jim O’Neill include:
- Activation of the “Defend the Spend” system requiring receipts or photo evidence before payments.
- A demand letter to Governor Tim Walz for a full review of childcare centers.
- Launch of a fraud reporting hotline and email.
- FBI and DHS expanded investigations, deploying additional agents to dismantle large-scale fraud operations.
- Political Angle:
- Governor Tim Walz and Democrats are negligent or complicit.
- The fraud is linked to Somali immigrant communities and compared to organized crime.
- Democrats tolerate fraud to secure votes and maintain political power.
- Media Reaction:
- MSNBC and The New York Times framed criticism as racist, accusing Republicans of scapegoating Somali immigrants.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:03):
Ma, Minnesota.
Speaker 2 (00:13):
Let me translate what he said. The interest of Ilhan
are not of the American people. The interest of Ilhan
is that of the Somalian people and Somalia.
Speaker 1 (00:24):
You're listening to the forty seven Morning Update with Ben ferguson.
Speaker 3 (00:28):
Good Wednesday morning, So nice to have you with us
on the forty seven Morning Updated. We've got one major
story for you. It deals with the state of Minnesota
and the massive Somali fraud that is unfolding there now
toppling nine billion in the latest fraud that's been found.
So what is the federal government's response. Well, the Trump
(00:48):
administration is coming down heavy handed, and I have all
the details of what aspects of the government are being
used to hold those accountable for stealing taxpayers dollars in Minnesota. Up,
it's the forty seven Morning Update and it starts right now.
Story number one, Donald Trump is unleashing the federal government
and its resources to hold those accountable for the fraud
(01:12):
in Minnesota at a staggering pace. We now know that
federal funding has been frozen and systems safeguards are being
put into place the Trump administration, starting with the Department
of Health and Human Services has frozen about one hundred
and eighty five million and federal childcare funds to Minnesota
(01:34):
as part of accountability measures over suspected fraud in the
state programs. It was announced by the Deputy Secretary Jim O'Neill.
This is what he had to say about how much
money is going to stop flowing to the fraudsters in Minnesota.
Speaker 4 (01:50):
Hello, I may trust Deputy Secretary Jim O'Neill. I'm here
with Assistant Secretary Alex Adams silver Seas, the Administration for
Children and Families and trepid journalists have made shocky, incredible
allegations of extensive fraud in Minnesota's childcare programs. We believe
the state of Minnesota has allowed scammers and fake daycares
to siphon millions of taxpayer dollars over the past decade.
Speaker 5 (02:13):
My office ACF provides Minnesota one hundred and eighty five
million dollars in childcare funds each year. That money should
be helping nineteen thousand American children, including toddlers and infants.
Any dollar stolen by fraudsters is stolen from those children. Yesterday,
I spoke directly with the director of the Minnesota Childcare
Services Office. She could not tell me with confidence whether
(02:35):
those allegations of fraud are isolated or whether there's fraud
stretching statewide.
Speaker 4 (02:39):
Today, we've taken three direct actions against the blatant fraud
that seems to be rampant in Minnesota. First, I have
activated our defend the Spend system for all ACF childcare
payments across America. Starting today, we require a justification, receipt
or photo evidence before we make a payment. Second, I've
just signed and said vent a demand letter to Governor Walls.
(03:02):
I required a full three hundred and sixty review of
these centers. This includes attendance records, licenses, complaints, investigations, and inspections.
Speaker 5 (03:10):
And Third, we've launched a dedicated fraud reporting hotline and
email address at childcare dot gov. Whether you're a parent,
a provider, a member of the public, we want to
hear from you. Let me be crystal clear. ACF expects
every state to uphold the highest standards of oversight, monitoring,
and accountability for federal dollars. Minnesota is no exception.
Speaker 4 (03:31):
We're committed to holding bad actors accountable, regardless the rank
of office anyone is involved in perpetrating this fraud against
the American people should expect to be prosecuted to the
fullest extent of the law.
Speaker 3 (03:43):
Not only are is HESS officials saying they're activating to
defend the spend system, requiring evidence and justification before further
federal payments are made, but they also said that if
you are involved in the fraud, they are coming after
you and you will be prosecuted, which brings me to
Part two of the Trump administration's response. They have now
(04:04):
expanded the federal investigation. The FBI and the Department of
Homeland Security have significantly increased their investigative efforts in Minnesota,
including now deploying additional federal agents. They're on the ground
investigating all that has been uncovered. The actions are described
by federal law enforcement leadership as part of a quote
(04:27):
broad effort to uncover and dismantle large scale fraud operations
within the state. Now, this is on top of the
intensified federal actions built on the existing work where dozens
of convictions have already been secured in major fraud schemes,
including the large pandemic air feed are future case. Federal
(04:50):
prosecutors and investigators say they are continuing to pursue accountability,
including additional charges and oversight, demonstrating the going commitment to
enforcement of the law in the state. Now this isn't
just going to be in Minnesota, We're being told as well.
They expect us to expand to other states where fraud
(05:11):
is unfolding. Now, the reason why these actions matter is
because they're freezing the funds when misuse is even suspected
instead of when it's just proven. It helps protect federal
dollars for their intended purpose. A great example of that
is actual childcare and childcare support for families of American citizens.
(05:33):
They also say requiring evidence before disbursement adds safeguards that
were previously weaker because they were trusting, and now they're
going to reduce the risk of large scale fraud in
the future. And expanding the investigative resources signals the federal
resolve from the Trump administration thoroughly examining and prosecuting fraud
(05:54):
beyond just local or state efforts. Now, while all this
is happening, there's also a disaster for Governor Tim Walls.
In fact, there's a new ad out right now and
this is what it sounds like.
Speaker 6 (06:07):
Tim Walls doesn't seek out fraud. Fraud seeks out Tim Walls.
When scammers apply for jobs, they list him as a reference.
Under his watch, Fraud is Minnesota's fastest growing small business,
His biggest export taxpayer money delivered to foreign terrorists. If
Fraud had a frequent flyer program, he would always fly
(06:30):
first class. He is Tim Walls, the most fraudulent man
in America.
Speaker 3 (06:37):
The scary part is there's a lot of truth to
that parody ad which brings us back to even the
bigger issue now, and that is the Democrats response. They're
not seeing fraud at all. In fact, they're looking at
the opposite of that, making it clear they don't believe
that anything really bad is happening. A great example is
(06:57):
MSNBC or ms NOW, whatever the hell they call themselves
with the New York Times, one of those in charge
the editorial board had this to say on Morning Joe,
saying that if you are criticizing the fraud in Minnesota,
you are a racist towards Somali's take a listen.
Speaker 7 (07:17):
The question is, you know, why is this a priority?
In a different kind of way, the politicization of the
DOJ and the FBI is undeniable. So whether they are
reliable narrators is the big question. And this is what
happens when you weaponize and politicize federal agencies that are
not meant to be, you know, politicized. And I think
(07:40):
the American people are right to ask the question, well,
can we trust you? And that's a sad thing to
say as an American. Let's recall too, that there's also
other scandals in other states, for example, the Mississippi welfare scandal.
And this is this is not unique to politics. Americans
know that. But of course the other factor here is
(08:00):
that because it looks like the Somali population in Minnesota,
the Smali immigrant population may have been some involved in
some way, those people are being scapegoaded and that community
is being scapegoaded in a way that certainly serves the
far right. And so that's also something to keep an
eye on, and that's inappropriate. Absolutely.
Speaker 3 (08:23):
So there you have it, Democrats going back to their playbook.
Anytime they can't defend their actions or their fraud, they
scream racism and say, how dare you criticize the Somali community. Now,
let's be clear about just how massive this fraud is
within the Somali community. It isn't just a few bad
actors that set up a few daycare centers. This is
(08:45):
a wide spread fraud with the community owning these centers
as well as the children they claim are going to
the centers, and the kickbacks that are going to the
parents for signing their kids up that never actually at end.
This is not a little fraud. It is a massive fraud.
And the massive fraud is all Somali run and organized.
(09:10):
It's no different than organized crime. It's no different than
what we see with the cartels. And that's exactly why
the president has no other choice but to do exactly
what he's doing right now, unleash the entire federal government
to go after those that have stolen billions of dollars
from the taxpayers. Now, this is another example of just
(09:34):
how absurd the left has really become. They say, do
not punish anyone because they are Somali, And the real
reason why is they want to buy votes. Why else
would you bring in so many Somali voters. You brought
them in so they'd support you. You got them addicted
to government aid, and you know they're going to vote
(09:56):
for you as long as you pay them through the
government aid and the waste and the fraud and the abuse,
and the scary part of all is Democrats aren't even
outraged over this, and they're not outraged that the money
was actually going to a terrorist organization, al Shabab. So
here we are. It is a divide. You're either standing
(10:17):
with the terrorists al Shabab, or you're standing with the
American taxpayer, the hard working Americans that pay their taxes
that have been ripped off. And now we know exactly
where the Democrats stand on the issue. It's not with you,
it's with the terrorists.
Speaker 1 (10:32):
Thank you for listening to the forty seven Morning Update
with Ben Ferguson. Please make sure you hit subscribe wherever
you're listening to this podcast right now and for more
in depth news, also subscribe to the Ben Ferguson podcast
and we will see you back here tomorrow
Ma, Minnesota.
Speaker 2 (00:13):
Let me translate what he said. The interest of Ilhan
are not of the American people. The interest of Ilhan
is that of the Somalian people and Somalia.
Speaker 1 (00:24):
You're listening to the forty seven Morning Update with Ben ferguson.
Speaker 3 (00:28):
Good Wednesday morning, So nice to have you with us
on the forty seven Morning Updated. We've got one major
story for you. It deals with the state of Minnesota
and the massive Somali fraud that is unfolding there now
toppling nine billion in the latest fraud that's been found.
So what is the federal government's response. Well, the Trump
(00:48):
administration is coming down heavy handed, and I have all
the details of what aspects of the government are being
used to hold those accountable for stealing taxpayers dollars in Minnesota. Up,
it's the forty seven Morning Update and it starts right now.
Story number one, Donald Trump is unleashing the federal government
and its resources to hold those accountable for the fraud
(01:12):
in Minnesota at a staggering pace. We now know that
federal funding has been frozen and systems safeguards are being
put into place the Trump administration, starting with the Department
of Health and Human Services has frozen about one hundred
and eighty five million and federal childcare funds to Minnesota
(01:34):
as part of accountability measures over suspected fraud in the
state programs. It was announced by the Deputy Secretary Jim O'Neill.
This is what he had to say about how much
money is going to stop flowing to the fraudsters in Minnesota.
Speaker 4 (01:50):
Hello, I may trust Deputy Secretary Jim O'Neill. I'm here
with Assistant Secretary Alex Adams silver Seas, the Administration for
Children and Families and trepid journalists have made shocky, incredible
allegations of extensive fraud in Minnesota's childcare programs. We believe
the state of Minnesota has allowed scammers and fake daycares
to siphon millions of taxpayer dollars over the past decade.
Speaker 5 (02:13):
My office ACF provides Minnesota one hundred and eighty five
million dollars in childcare funds each year. That money should
be helping nineteen thousand American children, including toddlers and infants.
Any dollar stolen by fraudsters is stolen from those children. Yesterday,
I spoke directly with the director of the Minnesota Childcare
Services Office. She could not tell me with confidence whether
(02:35):
those allegations of fraud are isolated or whether there's fraud
stretching statewide.
Speaker 4 (02:39):
Today, we've taken three direct actions against the blatant fraud
that seems to be rampant in Minnesota. First, I have
activated our defend the Spend system for all ACF childcare
payments across America. Starting today, we require a justification, receipt
or photo evidence before we make a payment. Second, I've
just signed and said vent a demand letter to Governor Walls.
(03:02):
I required a full three hundred and sixty review of
these centers. This includes attendance records, licenses, complaints, investigations, and inspections.
Speaker 5 (03:10):
And Third, we've launched a dedicated fraud reporting hotline and
email address at childcare dot gov. Whether you're a parent,
a provider, a member of the public, we want to
hear from you. Let me be crystal clear. ACF expects
every state to uphold the highest standards of oversight, monitoring,
and accountability for federal dollars. Minnesota is no exception.
Speaker 4 (03:31):
We're committed to holding bad actors accountable, regardless the rank
of office anyone is involved in perpetrating this fraud against
the American people should expect to be prosecuted to the
fullest extent of the law.
Speaker 3 (03:43):
Not only are is HESS officials saying they're activating to
defend the spend system, requiring evidence and justification before further
federal payments are made, but they also said that if
you are involved in the fraud, they are coming after
you and you will be prosecuted, which brings me to
Part two of the Trump administration's response. They have now
(04:04):
expanded the federal investigation. The FBI and the Department of
Homeland Security have significantly increased their investigative efforts in Minnesota,
including now deploying additional federal agents. They're on the ground
investigating all that has been uncovered. The actions are described
by federal law enforcement leadership as part of a quote
(04:27):
broad effort to uncover and dismantle large scale fraud operations
within the state. Now, this is on top of the
intensified federal actions built on the existing work where dozens
of convictions have already been secured in major fraud schemes,
including the large pandemic air feed are future case. Federal
(04:50):
prosecutors and investigators say they are continuing to pursue accountability,
including additional charges and oversight, demonstrating the going commitment to
enforcement of the law in the state. Now this isn't
just going to be in Minnesota, We're being told as well.
They expect us to expand to other states where fraud
(05:11):
is unfolding. Now, the reason why these actions matter is
because they're freezing the funds when misuse is even suspected
instead of when it's just proven. It helps protect federal
dollars for their intended purpose. A great example of that
is actual childcare and childcare support for families of American citizens.
(05:33):
They also say requiring evidence before disbursement adds safeguards that
were previously weaker because they were trusting, and now they're
going to reduce the risk of large scale fraud in
the future. And expanding the investigative resources signals the federal
resolve from the Trump administration thoroughly examining and prosecuting fraud
(05:54):
beyond just local or state efforts. Now, while all this
is happening, there's also a disaster for Governor Tim Walls.
In fact, there's a new ad out right now and
this is what it sounds like.
Speaker 6 (06:07):
Tim Walls doesn't seek out fraud. Fraud seeks out Tim Walls.
When scammers apply for jobs, they list him as a reference.
Under his watch, Fraud is Minnesota's fastest growing small business,
His biggest export taxpayer money delivered to foreign terrorists. If
Fraud had a frequent flyer program, he would always fly
(06:30):
first class. He is Tim Walls, the most fraudulent man
in America.
Speaker 3 (06:37):
The scary part is there's a lot of truth to
that parody ad which brings us back to even the
bigger issue now, and that is the Democrats response. They're
not seeing fraud at all. In fact, they're looking at
the opposite of that, making it clear they don't believe
that anything really bad is happening. A great example is
(06:57):
MSNBC or ms NOW, whatever the hell they call themselves
with the New York Times, one of those in charge
the editorial board had this to say on Morning Joe,
saying that if you are criticizing the fraud in Minnesota,
you are a racist towards Somali's take a listen.
Speaker 7 (07:17):
The question is, you know, why is this a priority?
In a different kind of way, the politicization of the
DOJ and the FBI is undeniable. So whether they are
reliable narrators is the big question. And this is what
happens when you weaponize and politicize federal agencies that are
not meant to be, you know, politicized. And I think
(07:40):
the American people are right to ask the question, well,
can we trust you? And that's a sad thing to
say as an American. Let's recall too, that there's also
other scandals in other states, for example, the Mississippi welfare scandal.
And this is this is not unique to politics. Americans
know that. But of course the other factor here is
(08:00):
that because it looks like the Somali population in Minnesota,
the Smali immigrant population may have been some involved in
some way, those people are being scapegoaded and that community
is being scapegoaded in a way that certainly serves the
far right. And so that's also something to keep an
eye on, and that's inappropriate. Absolutely.
Speaker 3 (08:23):
So there you have it, Democrats going back to their playbook.
Anytime they can't defend their actions or their fraud, they
scream racism and say, how dare you criticize the Somali community. Now,
let's be clear about just how massive this fraud is
within the Somali community. It isn't just a few bad
actors that set up a few daycare centers. This is
(08:45):
a wide spread fraud with the community owning these centers
as well as the children they claim are going to
the centers, and the kickbacks that are going to the
parents for signing their kids up that never actually at end.
This is not a little fraud. It is a massive fraud.
And the massive fraud is all Somali run and organized.
(09:10):
It's no different than organized crime. It's no different than
what we see with the cartels. And that's exactly why
the president has no other choice but to do exactly
what he's doing right now, unleash the entire federal government
to go after those that have stolen billions of dollars
from the taxpayers. Now, this is another example of just
(09:34):
how absurd the left has really become. They say, do
not punish anyone because they are Somali, And the real
reason why is they want to buy votes. Why else
would you bring in so many Somali voters. You brought
them in so they'd support you. You got them addicted
to government aid, and you know they're going to vote
(09:56):
for you as long as you pay them through the
government aid and the waste and the fraud and the abuse,
and the scary part of all is Democrats aren't even
outraged over this, and they're not outraged that the money
was actually going to a terrorist organization, al Shabab. So
here we are. It is a divide. You're either standing
(10:17):
with the terrorists al Shabab, or you're standing with the
American taxpayer, the hard working Americans that pay their taxes
that have been ripped off. And now we know exactly
where the Democrats stand on the issue. It's not with you,
it's with the terrorists.
Speaker 1 (10:32):
Thank you for listening to the forty seven Morning Update
with Ben Ferguson. Please make sure you hit subscribe wherever
you're listening to this podcast right now and for more
in depth news, also subscribe to the Ben Ferguson podcast
and we will see you back here tomorrow
Host
Ben Ferguson
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