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Fraud fallout forces Democratic Gov Tim Walz to abandon Minnesota re-election bid

Fraud fallout forces Democratic Gov Tim Walz to abandon Minnesota re-election bid

Gov. Tim Walz of Minnesota announced on Monday that he’s dropping his bid for a third term as governor amid stinging criticism of the unsuccessful 2024 Democratic vice presidential nominee’s handling of his state’s massive welfare assistance fraud scandal. “The political gamesmanship we’re seeing from Republicans is only making that fight harder to win,” Walz charged in a statement as he pointed to his efforts to deal with the growing fraud scandal. “But 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,” the governor added. “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.” “So I’ve decided to step out of the race and let others worry about the election while I focus on the work,” the governor announced. GOP LAWMAKER UNVEILS WALZ ACT AFTER BILLIONS LOST IN 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. MEDIA ‘COMPLICITY’ BLAMED AS FEDS SAY MINNESOTA FRAUD CRISIS COULD REACH $9B: ‘SHOWN THEIR TRUE COLORS’ 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. “This is on my watch, I am accountable for this and, more importantly, I am the one that will fix it,” Walz told reporters last month, as he took responsibility for the scandal. The governor took actions to stop some of the suspected fraudulent payments, and ordered an outside audit of Medicaid billing in the state. But Trump repeatedly blasted Walz as “incompetent” and, during Thanksgiving, used a slur for developmentally disabled people to describe the governor. The scandal, which grabbed plenty of national attention over the past two months, went viral the past few weeks following the release of a video by 23-year-old YouTube content creator Nick Shirley, who alleged widespread fraud at Somali-run daycare centers. Days later, the Trump administration froze federal child-care funding to Minnesota. Reactions quickly began to pour in following the Walz announcement.  “Good riddance,” Republican House Majority Whip Tom Emmer, who represents Minnesota’s 6th Congressional District, said in a statement. Republican Governors Association Communications Director Courtney Alexander charged in a statement that “Walz’s failed leadership is emblematic of Minnesota Democrats’ agenda and whoever Democrats choose to replace Walz with at the top of the ticket will need to defend years of mismanagement and misplaced priorities.” Minnesota Republican state Rep. Kristin Robbins, a candidate for governor, released a statement saying, “Tim Walz and his staggering fraud could not outrun our investigations and the momentum we have in this race.” “He knows he will lose in November, and would rather give up than take responsibility. Anyone Walz handpicks to run for governor will own the fraud and failures of this administration. Our campaign is building the coalition necessary to stop the fraud, protect our kids, and make Minnesota prosper. As Governor, I will dismantle the years of fraud Democrats allowed and ensure our tax dollars work for Minnesotans.” Minnesota House Speaker Lisa Demuth, another leading Republican gubernatorial candidate, took to social media to argue, “If Democrats think they can sweep Minnesota’s fraud scandal away by swapping out Tim Walz, they are wrong.” “We need transformational change across state government that only comes with a Republican governor. I will deliver that no matter who the Democrats decide to run,” Demuth emphasized. Joe Teirab, a former federal prosecutor who worked on the Feeding our Future fraud case that was a key part of the unfolding fraud scandal, told Fox News Digital that Walz “allowed fraudsters to steal billions from taxpayers, and did nothing.” “The only fraud scheme Walz has chosen to end is his political career,” Teirab said.  But Democratic Governors Association (DGA) and Kentucky Gov. Andy Beshear said in a statement, “No matter who decides to run or how much national Republicans want to spend, the DGA remains very confident Minnesotans will elect another strong Democratic governor this November.” And Besehar praised Walz, a former DGA chair, as “a true leader who has delivered results that will make life better for Minnesota workers and families for years to come.” Democratic National Committee chair Ken Martin, a former longtime state party chair in Minnesota, said the decision by Walz “is entirely consistent with who Tim is. Tim has always believed that leadership isn’t about preserving your own power — it’s about using it to make a difference for as many people as possible.” “In the months ahead, Tim will continue doing what he’s done throughout his career: standing up to Donald Trump, defending Minnesota’s values, and fighting for working people,” Martin predicted. Walz met Sunday with Democratic Sen. Amy Klobuchar of Minnesota to discuss his decision to drop his re-election bid, a source familiar confirmed to Fox News’ Alexis McAdams. Word of their meeting comes amid speculation that Klobuchar, a former Hennepin County attorney who’s been elected and re-elected four times to the U.S. Senate, may now run to

Trump warns ‘sick’ South American leader, reiterates ‘we need Greenland’ for national security

Trump warns ‘sick’ South American leader, reiterates ‘we need Greenland’ for national security

President Donald Trump on Sunday issued warnings about Colombian President Gustavo Petro’s political future and renewed threats to annex Greenland. Trump, speaking to reporters aboard Air Force One, was initially responding to questions about a U.S. military operation in Caracas that resulted in the capture of Venezuelan leader Nicolás Maduro and his wife, Cilia Flores, as well as the future of Venezuela, when he shifted his focus to another South American country. “Colombia’s very sick too, run by a sick man who likes making cocaine and selling it to the United States. And he’s not going to be doing it very long. Let me tell you,” Trump said. When pressed by a reporter to clarify his remarks, Trump claimed that Petro has “cocaine mills and cocaine factories.” TRUMP VOWS US ‘IN CHARGE’ OF VENEZUELA AS HE REVEALS IF HE’S SPOKEN TO DELCY RODRÍGUEZ “So there will be an operation by the U.S. in Colombia?” the reporter asked. “It sounds good to me,” Trump responded. His attention then turned to Greenland, where he once again expressed an interest in acquiring the Danish territory. TRUMP SAYS CUBA IS ‘READY TO FALL’ AFTER CAPTURE OF VENEZUELA’S MADURO “We need Greenland from the standpoint of national security, and Denmark is not going to be able to do it,” Trump said. “We need Greenland from a national security situation. It’s so strategic,” he added. Danish Prime Minister Mette Frederiksen sharply rebuked Trump’s comments, urging him to cease what she described as baseless threats against a close ally. “The Kingdom of Denmark – and thus Greenland – is part of NATO and is thus covered by the alliance’s security guarantee. We already have a defense agreement between the Kingdom and the USA today, which gives the USA wide access to Greenland. And we have invested significantly on the part of the Kingdom in the security of the Arctic,” said Frederiksen in a press release. COLOMBIA’S PRESIDENT CALLS TRUMP A ‘BARBARIAN’ IN RIFT OVER DRUG VESSEL STRIKES: REPORT  “I would therefore strongly urge that the U.S. stop the threats against a historically close ally and against another country and people who have said very clearly that they are not for sale,” Frederiksen added. Finnish President Alexander Stubb, Norwegian Prime Minister Jonas Gahr Støre, and Denmark’s Ambassador to the United States Jesper Møller Sørensen all voiced strong support for Denmark’s sovereignty over Greenland after Trump’s comment, stressing that Greenland’s future should be determined by Greenland and Denmark alone. Greenlandic Prime Minister Jens-Frederik Nielsen condemned Trump’s remarks as deeply “disrespectful” in a statement posted on Facebook. “Our country is not an object of superpower rhetoric. We are a people. A land. And democracy. This has to be respected. Especially by close and loyal friends,” Nielsen wrote in part. “Threats, pressure and talk of annexation do not belong anywhere between friends,” he added. “That’s not how you talk to a people who have repeatedly shown responsibility, stability and loyalty. This is enough.”

VP Vance’s Ohio home damaged, man in custody, Secret Service says

VP Vance’s Ohio home damaged, man in custody, Secret Service says

A man is in custody after damaging property at Vice President JD Vance’s home in Cincinnati on Monday morning, the U.S. Secret Service said. Secret Service agents physically detained the adult male shortly after midnight, the agency told Fox News in a statement. The individual, whose identity was not immediately provided, allegedly caused property damage, including breaking windows on the exterior of a personal residence, the Secret Service said. After being detained, the man was taken into custody by the Cincinnati Police Department. JD VANCE SKIPS TRUMP’S VENEZUELA SPOTLIGHT, BUT AIDE SAYS HE WAS ‘DEEPLY INVOLVED’ BEHIND THE SCENES “The residence was unoccupied at the time of the incident, and the Vice President and his family were not in Ohio,” the agency said. A spokesperson for Vance also confirmed to Fox News that the vice president and his family were already back in Washington, D.C., when the incident happened. Vance posted a statement on X later Monday morning. “I appreciate everyone’s well wishes about the attack at our home,” the statement read, in part. “As far as I can tell, a crazy person tried to break in by hammering the windows. I’m grateful to the secret service and the Cincinnati police for responding quickly. We weren’t even home as we had returned already to DC.” WHITE HOUSE RACE UNDERWAY: WITH 2026 LOOMING, BOTH PARTIES ARE ALREADY PLAYING FOR 2028 Vance had been in Cincinnati as recently as this past weekend. A spokesperson previously said Vance had returned to Cincinnati after the operation in Venezuela to take President Nicolás Maduro into custody had concluded on Saturday. The spokesperson had said Vance joined Trump administration officials on a secure video conference to monitor the operation throughout the night. The U.S. Secret Service is working with the Cincinnati Police Department and the U.S. Attorney’s Office as prosecutors review possible charges.

White House ‘laser focused’ on affordability as Trump softens tariff strategy

White House ‘laser focused’ on affordability as Trump softens tariff strategy

The Trump administration is ramping down tariffs for even more goods as the White House zeroes in on its messaging surrounding affordability — an issue dominating American voters’ concerns.  The White House announced Wednesday that tariffs slated to kick in Thursday on furniture, kitchen cabinets and vanities would be postponed for another year — a move that comes as President Donald Trump has already scaled back tariffs on imported foods like coffee and bananas.  “This indicates that on some level the White House understands that President Trump’s tariffs are driving up consumer prices, and that Trump and the Republican Party are incurring substantial political damage from higher prices,” Michael Strain, director of economic policy studies at the conservative-leaning American Enterprise Institute think tank in Washington, said in an email to Fox News Digital Friday.  The White House slapped a 25% tariff on furniture, kitchen cabinets and vanities in October. Tariffs on furniture were slated to increase to 30% in January, and tariffs on the cabinets and vanities were set to increase to 50%. WHITE HOUSE TEASES MAJOR HOUSING AFFORDABILITY PLAN AS PRICES SQUEEZE AMERICANS  But now, the current 25% rate will remain for the rest of the year, the White House said in December, due to “productive” negotiations with trade partners to address “trade reciprocity and national security concerns with respect to imports of wood products,” according to the White House.  Meanwhile, the Bureau of Labor Statistics reported in November that household furnishings increased 4.6% in the past year. The Bureau of Labor Statistics’s Consumer Price Index released in December found that consumer costs rose 2.7% in the past year.  As a result, Republican strategist Matt Gorman said that he expects the White House to roll out additional initiatives like delaying higher tariffs in 2026. TRUMP TOUTS BRINGING COUNTRY BACK FROM ‘BRINK OF RUIN’  “The White House is laser-focused on cutting costs for the American people. This is another example of that. These tariffs give the president maximum flexibility and that’s a huge asset of their use,” Gorman, who previously served as the communications director for the National Republican Congressional Committee, said in an email to Fox News Digital Friday. “I’d expect to see more of these moves, lowering costs for the average consumer, as the year moves along.”  The White House did not respond to a request for comment from Fox News Digital on how the delay on higher tariffs ties into Trump’s messaging on affordability and the economy and said that the order reflects that trade talks are moving forward positively.  Affordability and the economy were top priorities for voters in the 2025 election, which included New York Mayor Zohran Mamdani’s race, as well as several other key gubernatorial races in Virginia and New Jersey, which Democrats ultimately won. FOX NEWS POLL: AS PRICES PINCH, VOTERS SEE TRUMP FOCUSED ELSEWHERE  Fox News Voter Poll data found that New York City voters ranked affordability as their top concern, and that New Jersey voters reported the state’s high taxes and the economy ranked as their top two issues. Additionally, the poll data found that half of voters in Virginia said that the economy was their top priority.  The election has prompted Republicans to hone in on economic issues in recent weeks, casting blame on former President Joe Biden for rising inflation costs and touting Trump’s record on economic issues. For example, White House press secretary Karoline Leavitt said in December that Trump’s policies are making America “affordable again,” and that the administration is working every day to “bring down the cost of living through bigger paychecks and lower prices.”  Additionally, Trump has maintained that the economy is “roaring,” and said in December he would rate his performance on the economy an “A-plus-plus-plus-plus-plus.” 

Minnesota fraud cases, explained: How hundreds of millions allegedly slipped through state programs

Minnesota fraud cases, explained: How hundreds of millions allegedly slipped through state programs

Here is what is known so far as Minnesota and the administration of Democratic Gov. Tim Walz continue to grapple with a burgeoning fraud scandal that has metastasized into a series of different, costly alleged money laundering operations at times tied to the Somali community in the Twin Cities. With so many moving parts, the following will present a summary of what has transpired so far in terms of each branch of the alleged scandal in Minnesota since the stories first made front-page news one month ago — as potentially upward of $1 billion being lost collectively, with some monies in one respect being remitted overseas and potentially into the hands of Islamic terrorists. For his part, Walz eventually took responsibility for his state’s safety net allegedly being bilked out of millions, saying in December, “This is on my watch, I am accountable for this and, more importantly I am the one that will fix it.”   Walz said his administration had been taking action to stop some suspected fraudulent payments over the summer and that his office referred some for prosecution. INDEPENDENT JOURNALIST SAYS HE’S GOTTEN DEATH THREATS, TOLD HE’LL BE ‘KIRKED’ OVER MINNESOTA FRAUD VIRAL VIDEO However, Walz said that a figure of $9 billion in lost taxpayer monies due to fraud stated by a federal prosecutor was “sensationalized” and invented by the White House, according to the Minnesota Reformer. President Donald Trump also labeled Walz a slur for developmentally disabled people shortly before the fraud story blew up in earnest, leading to the governor firing back at critics driving by his home and shouting the slur at the edifice. FEEDING OUR FUTURE By mid-December, the Justice Department announced at least 78 people had been charged in what became dubbed the “Feeding Our Future” scandal, so named for the Somali-linked nonprofit whose alleged bilking of St. Paul’s and Washington’s coffers brought the case to the fore. Nearly 40 people had by then pleaded guilty. Defendants charged in the larger scheme were accused of faking invoices, attendance records and distribution of meals in low-income and other affected areas around Minnesota — utilizing COVID-era waivers the U.S. Department of Agriculture granted for requirements in child nutrition programs that allowed for, in some cases, food distributors for children not be necessarily linked to an accredited school. FBI Director Kash Patel pegged one figure at $250 million stolen “from hungry kids during a pandemic to fund mansions and luxury cars,” calling the fraud “as shameless as it gets.” Documents allege about 300 registered food-distribution “sites” served little or no food, while the vendors cited used the program to launder money meant for the kids. Officials from the right-leaning public policy group Manhattan Institute also purported to discover the remittance of monies allegedly being bilked in Somali-heavy Minneapolis and entities in Somalia itself, including the terrorist group al-Shabab. Statistics cited by the institute showed that 40% of Somali households in Africa received remitted funds from abroad, of which $1.7 billion overall in 2023 were sent from the U.S. That reported figure is larger than the Mogadishu government’s budget. GOP LAWMAKER DEMANDS MINNESOTA FRAUD BE TREATED AS ‘ORGANIZED CRIME’ SCHEME While some in the mainstream media kept mum about the burgeoning fraud reports — including only seconds on broadcast network nightly news shows, according to the Media Research Center — The Washington Post’s editorial board scorched Walz for “refusing to take responsibility for the welfare fraud that happened in plain sight during the pandemic.” “Residents, mostly of Somali descent, targeted established Medicaid programs. They opened fake food distribution centers and autism centers to funnel resources away from the neediest. The numbers alone made clear what was happening,” the Post wrote. The FBI’s Minnesota lead, Alvin Winston Sr., told Fox News Digital that “the egregious fraud unveiled in the Feeding our Future case epitomizes a profound betrayal of public trust.” “The magnitude (of the fraud) cannot be overstated,” added U.S. Attorney Joseph Thompson, who added that the overall network of fraudulent behavior is “swamping Minnesota and calling into question everything we know about our state.” HOUSING SUBSIDIES & AUTISM SERVICES As the Feeding Our Future scandal enveloped the news cycle, federal prosecutors in mid-December announced yet another Minnesota program that had been taken advantage of by fraudsters — including outside the state itself — to the tune of millions once more. Thompson quipped Dec. 19 that every time his office “looks under a rock,” another “$50 million” scheme pops up, according to the Minneapolis Star-Tribune. At least five people have been charged for allegedly defrauding the state’s Housing Stabilization Services program, which helps Minnesotans find and upkeep housing, or for allegedly bilking an early-autism services program, according to the paper. MINNESOTA FRAUD COMMITTEE CHAIR CLAIMS WALZ ‘TURNED A BLIND EYE’ TO FRAUD WARNINGS FOR YEARS In the case of the autism services program, invoices allegedly were submitted for services allegedly never rendered, an allegation that was backed up by congressional findings later in the month. Of those charged, Thompson’s office leveled allegations against Anthony Jefferson and Lester Brown of Philadelphia, who, according to the Reformer, heard that the housing subsidy was “easy money.” The men went to Minnesota, enrolled their companies in the program, then filed fraudulent claims from Pennsylvania amounting to $3.5 million in Medicaid payments through what Thompson called “fraud tourism,” the paper said. MINNESOTA’S NEW MEDICAID FRAUD PREVENTION FIX WON’T MAKE ‘ANY DIFFERENCE,’ FORMER FBI AGENT SAYS In October, Walz’s office also had paused payments in as many as 14 state programs viewed as “high risk,” according to the Reformer. By December, the House Oversight Committee honed in on the alleged fraud, launching its own probe and faulting Walz for inefficient oversight. “The Committee has serious concerns about how you as the Governor, and the Democrat-controlled administration, allowed millions of dollars to be stolen. The Committee also has concerns that you and your administration were fully aware of this fraud and chose not to act for fear of political retaliation,” Chairman James