Trump has the chance to end the welfare free-for-all Minnesota exposed



It’s the $1.2 trillion question.

The United States spends roughly $1.2 trillion every year on means-tested welfare programs — cash aid, food assistance, housing subsidies, and medical care. The list runs through a thicket of acronyms: SNAP, TANF, SSI, EITC, ACTC, WIC, CHIP, ACA subsidies, and CCDBG, plus school meals, Medicaid, and Section 8 housing.

States that eliminate fraud can afford to provide better aid to real residents in need — creating a race to the top in administration rather than a race to exploit Washington.

This guaranteed-income architecture now fuels a destructive cycle. Federal spending drives debt. Debt fuels inflation. Inflation expands dependence. And Washington responds by printing more money and sending it back to the states — without demanding serious accountability.

The result is a bottomless pit of spending, fraud, and inflation, with states handed endless federal funds and almost no incentive to police abuse.

Minnesota’s massive Somali-linked fraud scandal exposes this system in its most grotesque form. The question is whether President Trump will use it to force states to reclaim ownership — and responsibility — over welfare.

The day-care, nutrition, and medical fraud uncovered in Minneapolis is not an aberration. It is the predictable outcome of an open-ended entitlement state. Fraud networks thrive wherever federal money flows without limits or consequences. While the Minneapolis cases involved tight-knit ethnic networks, the underlying problem is national and structural. As long as states do not have to pay their own way, fraud will remain rational behavior.

California offers a parallel example. A report last summer found that roughly one-third of all community college applications in the state were fake — submitted solely to extract federal financial aid. That scam could not survive if California had to pick up the tab.

It isn’t just a blue-state problem, either. As Alex Berenson has reported, Indiana’s Medicaid spending on “autism behavioral therapy” exploded thirtyfold in just six years, reaching $75,000 per child for a few hours a week of unproven playtime therapy. When federal dollars cover the bill, discipline evaporates.

RELATED: Government fraud meets its worst enemy: Some dude with a phone

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Many Americans ask how Minnesota allowed the Feeding Our Future scandal to persist for years. The answer is simple: Washington supplied unlimited money, and the state faced no budgetary consequence for ignoring warning signs.

Over 200 day-care and medical providers allegedly siphoned billions across Medicaid, child care, and nutrition programs. That scale of fraud does not occur without political indifference — or worse.

States have every incentive under this system to look away. Federal money enables a closed loop of special interests, dependency, and electoral protection. Oversight threatens the flow.

Devolving welfare programs to the states — using fixed block grants rather than open-ended federal matches — would cut this dynamic off at the knees. States must balance their budgets. They do not have a printing press. When fraud costs real money, enforcement follows.

This is the moment for Trump to make that case. Either states raise taxes to fund welfare programs themselves, or they reform and prioritize them. That choice restores democratic accountability.

Consider the contrast. The United States spends roughly $1 trillion on national defense — protecting everyone. Yet we now spend even more on means-tested welfare that serves narrower populations while distorting the economy for all. Open-ended welfare spending drives inflation, which then forces more people onto welfare. End the money-printing, and fewer people will need subsidies in the first place.

RELATED: The insane little story that failed to warn America about the depth of Somali fraud

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In response to the Minnesota scandal, Trump’s Office of Management and Budget froze $10 billion in funding for TANF and the Child Care Development Fund across several states. That is a start. But temporary freezes will not survive the next Democrat administration.

The durable fix is statutory restructuring — through budget reconciliation — to force states to assume full financial responsibility for welfare programs. Without unlimited federal backstopping, abuse becomes politically and fiscally intolerable.

Critics warn that block grants spark a “race to the bottom.” The 1996 welfare reform suggests the opposite. When states gained ownership, many innovated — emphasizing work, child-care support, and fraud reduction. Accountability improved because incentives changed.

Yes, benefits should be limited to the truly needy. Open-ended entitlements allowed 250 “meal sites” to appear almost overnight in Minnesota, claiming to feed 120,000 children a day.

Force states to balance their books, and they will treat taxpayer money with respect. States that eliminate fraud can afford to provide better aid to real residents in need — creating a race to the top in administration rather than a race to exploit Washington.

The real way to “feed our future” is to end inflationary money-printing and dismantle the infinite entitlement state — so families can afford food on their own again.

Trump administration sends Democrats into hysterics by freezing funding to 5 blue states over fraud concerns



President Donald Trump told reporters on Sunday that those responsible for the historic fraud in Minnesota — members of the Somali community in particular — aren't just ripping off the Gopher State but the country at large.

"Think of it: $19 billion at least they've stolen from Minnesota and from the United States," said Trump.

"We're not going to pay it any more. We're going to have [Gov. Tim] Walz go pay. We're not going to pay them, and we're not going to pay California, and we're not going to pay Illinois."

In the wake of the president's remarks, the Trump administration cut off five Democrat-run states' access to over $10 billion in federal child care and family assistance funds.

'It's a giant scam.'

On Tuesday, the Department of Health and Human Services announced that it had barred California, Colorado, Illinois, Minnesota, and New York from accessing nearly $2.4 billion in Child Care and Development Fund money; $7.35 billion in Temporary Assistance for Needy Family funds; and $869 million in Social Services Block Grant funds.

"Families who rely on child care and family assistance programs deserve confidence that these resources are used lawfully and for their intended purpose," HHS Deputy Secretary Jim O'Neill said in a statement. "This action reflects our commitment to program integrity, fiscal responsibility, and compliance with federal requirements."

HHS Assistant Secretary Alex Adams, the head of the Administration for Children and Families, emphasized the government's responsibility to "ensure these programs serve the families they were created to help," adding that "when there are credible concerns about fraud or misuse, we will act."

RELATED: Tim Walz's nightmare continues as HHS shuts off $185M to Minnesota amid allegedly 'fake' Somali day care centers

Photo by Mandel NGAN/AFP via Getty Images

HHS indicated that the funding freeze will remain in place until the ACF completes a review and determines that the affected states are in compliance with federal requirements.

'It's cruel.'

Adams and O'Neill also announced on Tuesday that the Trump administration is ending Biden-era practices of providing child-care centers with payments up front without verifying attendance.

Democrats melted down over the funding pause, characterizing the effort to ensure taxpayer dollars aren't siphoned away by fraudsters as an attack on children.

New York Gov. Kathy Hochul, whose state has seen its share of day-care fraud, said in response to the funding freeze, "It's vindictive. It's cruel. And we'll fight it with every fiber of our being."

Sen. Kirsten Gillibrand (D-N.Y.) tried downplaying the fraud, claiming that "this has nothing to do with fraud and everything to do with political retribution that punishes poor children in need of assistance."

"Rather than making life easier and more affordable for our families, Donald Trump is stripping away child care from Illinois families who are just trying to go to work," said Illinois Gov. J.B. Pritzker (D). "Thousands of parents and children depend on these child-care programs to help them make ends meet, and now their livelihoods are being put at risk."

Colorado Sen. Michael Bennet, a Democrat with aspirations of becoming his state's next governor, tweeted, "Donald Trump has declared war on Colorado. He is now robbing thousands of vulnerable Colorado families of the critical support they need to afford food, housing, and health care."

Trump raised the matter of fraud in Minnesota during a New Year's Eve event, then noted that "California is worse, Illinois is worse, and, sadly, New York is worse. A lot of other places. We're going to get to the bottom of all of it. It's a giant scam."

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