Federal authorities are escalating their response to the Minnesota fraud scandal as the Trump administration intensifies investigations into alleged widespread abuse of public programs under Gov. Tim Walz’s administration. The Minnesota fraud case drew sharp warnings this week from White House press secretary Karoline Leavitt, who said arrests are imminent.
“People will be in handcuffs,” Leavitt told Fox & Friends on Wednesday, stressing that accountability will reach the highest levels of state leadership. “President Trump is not going to let Governor Walz off the hook,” she added, arguing the alleged fraud occurred squarely under Walz’s watch.
Leavitt confirmed that multiple federal agencies have surged resources into Minnesota. “This is a top priority for the administration,” she said. According to Leavitt, the Department of Justice is “continuing to execute search warrants and subpoenas,” while the Department of Homeland Security is conducting “door-to-door investigations on the ground at potential fraud sites.” Immigration and Customs Enforcement is also carrying out enforcement actions, including deportations tied to the investigation.
Leavitt further warned that citizenship status could be scrutinized. “We’re also not afraid to use denaturalization,” she said, calling it a lawful tool available to the administration. Additional agencies, including Health and Human Services, Agriculture, and Labor, are participating. One has cut off childcare funding to Minnesota, another is investigating unemployment insurance, and a third has demanded the names of all SNAP recipients in the state.
Gov. Walz has acknowledged the seriousness of the Minnesota fraud allegations. “The situation is on my watch,” he said, admitting accountability while disputing some federal estimates. Walz ordered a third-party audit of Medicaid billing and paused payments for certain programs, stating, “If you attempt to defraud our public programs and steal taxpayer dollars… you will be stopped, and you will be held accountable.”
