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Year: 2026

Federal officials to halt more than $10B in funding to 5 states over non-citizen benefit concerns: report

Federal officials to halt more than B in funding to 5 states over non-citizen benefit concerns: report

The Trump administration is moving to freeze more than $10 billion in federal child care and social services funding to five Democrat-led states amid concerns taxpayer dollars were improperly diverted to non-citizens, according to a report. Officials reportedly told The New York Post that the Department of Health and Human Services (HHS) will freeze funding from the Child Care Development Fund (CCDF), the Temporary Assistance for Needy Families (TANF) program, and the Social Services Block Grant, affecting California, Colorado, Illinois, Minnesota, and New York over concerns the benefits were fraudulently funneled to non-citizens. More than $7.3 billion in TANF funding would be withheld from the five states, along with nearly $2.4 billion from the CCDF and another $869 million from the Social Services Block Grant. The funding pauses were expected to be announced in letters sent to state officials Monday, citing concerns that benefits were improperly directed to non-U.S. citizens. ABBOTT ORDERS COMPREHENSIVE FRAUD PROBE INTO TEXAS CHILD CARE FUNDING AFTER MINNESOTA SCANDAL A 2019 audit by the Department of Health and Human Services Office of Inspector General found that New York State improperly claimed $24.7 million in federal reimbursement for child care subsidies paid to New York City that did not comply with program rules. The audit attributed the overbilling to system errors and oversight failures – not criminal fraud – and state officials agreed to refund the funds and implement corrective controls, according to the report. Following the release of details surrounding the potential funding freeze, New York Democrats sharply criticized the Trump administration’s move, arguing it would harm families who rely on child care assistance. MINN. LAWMAKER ‘NOT SURPRISED’ BY WALZ ENDING CAMPAIGN, SAYS THERE WILL BE NO ‘STONE UNTURNED’ IN HEARINGS Sen. Kirsten Gillibrand, D-N.Y., accused the administration of using the issue for political retaliation and warned it would hurt children and low-income families across the state. “Trump is threatening to freeze child care funding in New York and targeting our children for political retribution. It’s immoral and indefensible,” she wrote in a post on X. “I’m demanding the administration abandon any plans to freeze this funding and stop hurting New York families.” Along with her post, Gillibrand also shared a public statement regarding the freezing of funds. HHS CUTS OFF MINNESOTA CHILD CARE PAYMENTS OVER ALLEGED DAYCARE FRAUD SCHEME “My faith guides my life and public service. It’s our job to serve the people most in need and most at risk – no matter what state they live in or what political party their family or elected representatives belong to,” she said. “To use the power of the government to harm the neediest Americans is immoral and indefensible. “This has nothing to do with fraud and everything to do with political retribution that punishes poor children in need of assistance,” Gillibrand added. “I demand that President Trump unfreeze this funding and stop this brazen attack on our children.” The NY Post first reported that in December, HHS sent letters to Walz and Minneapolis Mayor Jacob Frey seeking information on whether billions in taxpayer funds may have unlawfully helped “fuel illegal and mass migration.” Those requests were followed by investigations launched by the Treasury Department and the House Oversight Committee into a growing fraud scandal involving several nonprofits tied to the Somali community in the Twin Cities. An estimated 130,000 illegal migrants were living in Minnesota as of 2023 — about 40,000 more than in 2019 and roughly 2% of the state’s population — according to the Pew Research Center. The state’s Somali diaspora exceeds 100,000 people, with most concentrated in the Minneapolis–St. Paul area. The news on Monday came the same day Minnesota Gov. Tim Walz announced he was dropping his bid for a third term as governor amid stinging criticism of his handling of the state’s massive welfare assistance fraud scandal. KAROLINE LEAVITT WARNS ‘PEOPLE WILL BE IN HANDCUFFS’ AS FEDS ZERO IN ON MINNESOTA FRAUD SCANDAL Walz launched his bid for a third four-year term as Minnesota governor in September, but in recent weeks has been facing a barrage of incoming political fire from President Donald Trump and Republicans, and some Democrats, over the large-scale theft in a state that has long prided itself on good governance. More than 90 people — most from Minnesota’s large Somali community — have been charged since 2022 in what has been described as the nation’s largest COVID-era scheme. How much money has been stolen through alleged money laundering operations involving fraudulent meal and housing programs, daycare centers and Medicaid services is still being tabulated. But the U.S. attorney in Minnesota said the scope of the fraud could exceed $1 billion and rise to as high as $9 billion. MINNESOTA FRAUD SCANDAL INTENSIFIES DEBATE OVER STRIPPING CITIZENSHIP Prosecutors said that some of the dozens that have already pleaded guilty in the case used the money to buy luxury cars, real estate, jewelry and international vacations, with some of the funds also sent overseas and potentially into the hands of Islamic terrorists. Trump addressed Walz’s announcement of leaving the race on Monday, in a post on Truth Social. “Minnesota’s Corrupt Governor will possibly leave office before his Term is up but, in any event, will not be running again because he was caught, REDHANDED, along with Ilhan Omar, and others of his Somali friends, stealing Tens of Billions of Taxpayer Dollars,” the president wrote. “I feel certain the facts will come out, and they will reveal a seriously unscrupulous, and rich, group of ‘SLIMEBALLS.’ “Governor Walz has destroyed the State of Minnesota, but others, like Governor Gavin Newscum, JB Pritzker, and Kathy Hochul, have done, in my opinion, an even more dishonest and incompetent job,” Trump added. “NO ONE IS ABOVE THE LAW!” Fox News Digital’s Paul Steinhauser and Andrew Mark Miller contributed to this report.

Johnson insists US ‘not at war’ after closed-door Venezuela briefing divides lawmakers

Johnson insists US ‘not at war’ after closed-door Venezuela briefing divides lawmakers

A select group of lawmakers received their first closed-door briefing on Capitol Hill on Monday following the Trump administration’s weekend military strikes in Venezuela and the capture of President Nicolás Maduro — a meeting that quickly divided along political lines. The roughly two-hour meeting deep in the bowels of Congress featured top administration officials providing a classified briefing to congressional leaders and the chairs and ranking members of the armed services, intelligence and foreign relations committees.  None of the Trump officials, who included Secretary of State Marco Rubio, Attorney General Pam Bondi, CIA Director John Ratcliffe, Joint Chiefs of Staff Chair Gen. Dan “Raizin” Caine and Secretary of War Pete Hegseth, spoke after the meeting.  FETTERMAN DEFENDS TRUMP’S VENEZUELA MILITARY OPERATION AGAINST CRITICISM FROM FELLOW DEMOCRATS  But a handful of lawmakers did, and questions still lingered about what exactly would come next for U.S. involvement in the country, if other similar operations would be carried out across the globe, and who exactly was running Venezuela. House Speaker Mike Johnson, R-La., said that there was no expectation that the U.S. would be on the ground, nor would there be any “direct involvement in any other way beyond just coercing the interim government to to get that going.” “We are not at war,” Johnson said. “We do not have U.S. armed forces in Venezuela, and we are not occupying that country.” “This is not a regime change,” he continued. “This is a demand for change of behavior by a regime. The interim government is stood up now, and we are hopeful that they will be able to correct their action.” House Foreign Affairs Committee Chair Brian Mast, R-Fl., echoed Johnson, and reiterated that the operation was a “specific law enforcement function that took place that took a significant obstacle out of the way for the Venezuelan people to go chart a new future.”  NAVY SECRETARY PRAISES TRUMP ADMINISTRATION’S MADURO CAPTURE AS ‘MASTERCLASS IN PRECISION’ He didn’t expect further military action from the Trump administration in the country, either.  “These things are done before breakfast,” Mast said. “They don’t do protracted war operations.” However, Senate Minority Leader Chuck Schumer, D-N.Y., countered that the lengthy meeting “posed far more questions than it ever answered.”  One growing point of contention among lawmakers is just how directly involved the U.S. will be, given that Trump said that the U.S. would govern the country until a proper transition of power happened.  Schumer said that the plan presented behind closed doors or the U.S. running Venezuela “is vague, based on wishful thinking and unsatisfying.” “I did not receive any assurances that we would not try to do the same thing in other countries,” he said. “And in conclusion, when the United States engages in this kind of regime change and so called nation building, it always ends up hurting the United States. I left the briefing feeling that it would again.” FOX NEWS POLITICS NEWSLETTER: 3 KEY TAKEAWAYS FROM TRUMP’S PUSH TO PUT US OIL FIRMS BACK IN VENEZUELA  Schumer, along with Sens. Tim Kaine, D-Va., Adam Schiff, D-Calif., and Rand Paul, R-Ky., plan to force a vote later in the week on a war powers resolution that, if passed, would require the administration to get congressional approval before taking further military action in Venezuela.  Senate Majority Leader John Thune, R-S.D., said that he was satisfied with the briefing and that “it was a very comprehensive discussion.” Lawmakers will get another bite at the apple later in the week when Trump officials again return to Congress to provide a full briefing to lawmakers on Operation Absolute Resolve.  Sen. Mark Warner, D-Va., and the top-ranking Democrat on the Senate Select Committee on Intelligence, lauded the military for a “brilliant execution” of the mission, and noted that the region was better off without Maduro. But, like Schumer, he was still searching for the next step.  “The question becomes, as policymakers, what happens the day after,” Warner said. 

Walz’s lieutenant governor and progressive Senate hopeful slammed for leadership amid Somali fraud crisis

Walz’s lieutenant governor and progressive Senate hopeful slammed for leadership amid Somali fraud crisis

Minnesota Lt. Gov. and progressive Democratic Senate candidate Peggy Flanagan is taking criticism, including from inside her own party, for her leadership during what has been described as the nation’s largest COVID-era fraud scheme. Along with Democrat Gov. Tim Walz, Flanagan, who has helped lead the state as lieutenant governor since 2019, has come under fire for allowing the fraud scheme to grow during her watch. A Minnesota Democratic operative told Fox News Digital that Flanagan “could absolutely lose to a Republican given all the fraud that took place during her time as Lt. Governor.” “Today is the day Peggy’s Senate race effectively ended,” said the Democratic operative. FRAUD FALLOUT FORCES DEMOCRATIC GOV. TIM WALZ TO ABANDON MINNESOTA RE-ELECTION BID “Here are the facts: Peggy Flanagan was already a bad general election candidate, and this has made it even worse,” the operative went on, adding, “she owes the voters answers about what she knew and when.” House Majority Whip Tom Emmer, R-Minn., whose district includes the Twin Cities suburbs, told Fox News Digital that “Peggy Flanagan is just as much of a failure as Tim Walz.” He noted that Flanagan’s primary opponent, Democratic Rep. Angie Craig, “isn’t much better.” “Both of these candidates sat idly by while billions were stolen from hardworking taxpayers in Minnesota. And just like Tim, they ought to reconsider their candidacy,” said Emmer. Walz, who served as former Vice President Kamala Harris’ running mate in 2024, announced on Monday that he was withdrawing from seeking a third term as governor in light of the fraud scandal. “As I reflected on this moment with my family and my team over the holidays, I came to the conclusion that I can’t give a political campaign my all,” Walz wrote in a statement. “Every minute I spend defending my own political interests would be a minute I can’t spend defending the people of Minnesota against the criminals who prey on our generosity and the cynics who prey on our differences.” OVER 1,000 ARRESTED IN ‘MASSIVE’ MINNESOTA OPERATION, INCLUDING MURDERERS, RAPISTS, PEDOPHILES “So, I’ve decided to step out of this race and let others worry about the election while I focus on the work in front of me for the next year,” the governor added. Flanagan is running to replace outgoing Democratic Sen. Tina Smith, who is retiring from the Senate. She has been endorsed by the likes of Sen. Bernie Sanders, I-Vt., and Sen. Elizabeth Warren, D-Mass. Though she is considered a frontrunner, Flanagan’s response to the scandal has garnered criticism. She was recently seen on a Somali TV station wearing a hijab at a mall to signal her support for Minnesota’s Somali community as the federal government cracks down on the fraud scheme. This comes as more than 90 people, most from Minnesota’s large Somali community, have been charged since 2022 in what has been described as the nation’s largest COVID-era scheme. How much money has been stolen through alleged money laundering operations involving fraudulent meal and housing programs, daycare centers and Medicaid services is still being tabulated. But the U.S. attorney in Minnesota said the scope of the fraud could exceed $1 billion and rise to as high as $9 billion. In response to the criticisms, Lexi Byler, a spokesperson for Flanagan’s campaign, told Fox News Digital that “the Lt. Governor has made clear that the amount of fraud that is acceptable is zero and anyone who steals from taxpayer dollars should be prosecuted to the fullest extent of the law — which is exactly what’s happening in Minnesota, where 98 people have been charged and 62 convicted so far.” TRUMP FLIPS DEMOCRATS’ ‘NO ONE IS ABOVE THE LAW’ MANTRA AFTER WALZ DROPS RE-ELECTION BID Byler added that “what’s hard to take seriously is Republicans talking about accountability while Donald Trump has pardoned 27 corporate fraudsters and fired the Inspectors General whose job it is to police fraud,” adding that “Republicans are going to have to answer for that.” On her campaign website, Flanagan touts her record as lieutenant governor, including expanding Minnesota’s paid family and medical leave program and investments in education, healthcare and housing. The Minnesota primary will be on August 11.  Fox News Digital also reached out to Walz and Craig for comment but did not immediately receive a response.

Abbott orders comprehensive fraud probe into Texas child care funding after Minnesota scandal

Abbott orders comprehensive fraud probe into Texas child care funding after Minnesota scandal

Gov. Greg Abbott sent a letter Monday directing Texas state agencies to investigate potential child care funding fraud, following a major Minnesota social services scandal that cost taxpayers millions. “Recently, the Trump Administration and independent journalists have uncovered potential systematic fraud in subsidized child care systems in states like Minnesota,” Abbott said in a statement. “Such fraud will never be tolerated in Texas. Today, I directed Texas state agencies to take proactive steps to prevent, detect, and eliminate misuse of taxpayer funds to protect the integrity of Texas’ Child Care Services Program.”  Abbott’s letter was addressed to Texas Workforce Commission (TWC) Chairman Jose Esparza and Texas Health and Human Services Commission (HHSC) Executive Commissioner Stephanie Muth to lead the investigation. Both agencies have broad authority to strengthen fraud prevention efforts in the state’s child care program and regulate facilities. The agencies will have until Feb. 27 to submit a final report outlining how they implemented anti-fraud measures and investigated any potential misuse of Texas taxpayer dollars. HOW FEARS OF BEING LABELED ‘RACIST’ HELPED ‘PROVIDE COVER’ FOR THE EXPLODING MINNESOTA FRAUD SCANDAL Abbott noted that Texas already has a relatively low “improper payment rate” of 0.43 percent, compared with Minnesota’s roughly 11 percent, thanks to the agencies’ strong anti-fraud processes already in place. While the agencies already conduct routine audits of providers and in-person visits to facilities, “more can be done to protect Texas children and taxpayers,” Abbott said in the letter. CRITICS WARN MINNESOTA LEGISLATION NOW TAKING EFFECT IS SETTING UP THE ‘NEXT BILLION-DOLLAR FRAUD’ HHSC and TWC will provide a progress report to the governor’s office on Jan. 30, followed by a final report in late February. “I will continue to work with executive branch agencies to fight fraud, protect taxpayer dollars, and promote accessible, affordable, high-quality childcare for Texans,” Abbott added. The move comes just hours after Minnesota Gov. Tim Walz announced that he is suspending his reelection campaign amid allegations that the state attempted to cover up widespread fraud in his state’s social programs.  The scandal, which emerged in early December, involved individuals from the Somali-American community accused of defrauding public aid programs. While the schemes began with the Feeding Our Future case, which reportedly exploited a federally funded child nutrition program during the pandemic, investigators have since uncovered what they describe as a web of interconnected fraud spanning multiple sectors, including child care, Medicaid, housing and autism services.

Joe Biden, John Kerry among high-profile attendees for JFK’s granddaughter’s private funeral

Joe Biden, John Kerry among high-profile attendees for JFK’s granddaughter’s private funeral

Former President Joe Biden and former Democratic presidential nominee John Kerry were among a plethora of high-profile politicians and celebrities who attended the private funeral for Tatiana Schlossberg held at The Church of St. Ignatius of Loyola in New York City on Monday. Schlossberg, an environmental journalist and author who was the granddaughter of former President John F. Kennedy and daughter of Caroline Kennedy, died at the age of 35, following a year-and-a-half-long battle with acute myeloid leukemia. Her funeral was held at the Jesuit Catholic Church on the Upper East Side of Manhattan. It was a private, invitation-only service not open to the general public. Biden, along with his wife, former first lady Jill Biden, were photographed by Fox News Digital departing the church following the service. JFK’S GRANDDAUGHTER, TATIANA SCHLOSSBERG, REVEALS TERMINAL CANCER DIAGNOSIS IN HEARTBREAKING ESSAY Kerry was also photographed outside the church. Kerry, a longtime Democratic senator from Massachusetts, served as Secretary of State under former President Barack Obama and as a special climate envoy under Biden. Several other influential Democrats, including Obama political strategist David Axelrod, Sen. Ed Markey, D-Mass., and former New York City Mayor and Democratic presidential candidate Michael Bloomberg, were seen outside the church. Attendees of Schlossberg’s funeral also included several high-profile media personalities and figures, including late-night host David Letterman, The New Yorker editor David Remnick, renowned fashion designer Carolina Herrera and jazz-pop artist Jon Batiste. “Saturday Night Live” veteran and late-night host Seth Meyers was also photographed exiting the church. THOUSANDS OF PAGES OF NEW JFK ASSASSINATION FILES RELEASED, FULFILLING TRUMP PROMISE: ‘NEW ERA’ Born and raised in New York City, Schlossberg built a career as a voice on climate and environmental issues after earning a bachelor’s in history from Yale University and a master’s degree in American history from the University of Oxford. In 2024, Schlossberg was diagnosed with acute myeloid leukemia and shared her experience publicly in a personal essay for The New Yorker in November 2025. “My parents and my brother and sister, too, have been raising my children and sitting in my various hospital rooms almost every day for the last year and a half,” she wrote at the time. Schlossberg also explained how doctors discovered her disease while she was hospitalized after giving birth to her second child, a daughter. She explained in her essay how doctors spotted that her white-blood-cell count “looked strange.” THE EVIDENCE ‘DOESN’T SUPPORT’ THAT OSWALD ASSASSINATED JFK, EXPERT ARGUES She and her husband, George Moran, whom she married in 2017, also had a son. After hearing from a doctor that she had “a year, maybe” to live, Schlossberg told how her first thought was that “my kids, whose faces live permanently on the inside of my eyelids, wouldn’t remember me.” In her essay, she also predicted that her son “might have a few memories, but he’ll probably start confusing them with pictures he sees or stories he hears.” Also seen leaving the church were Schlossberg’s husband, mother, father, Edwin Schlossberg, sister Rose Schlossberg and first cousin Joe Kennedy III. Notably not seen outside the church was Schlossberg’s uncle, President Donald Trump’s Secretary of Health and Human Services Robert F. Kennedy Jr.