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FIRST ON FOX: Trump admin freezes out Minnesota of the Caribbean over alleged hurricane-aid abuses

FIRST ON FOX: Trump admin freezes out Minnesota of the Caribbean over alleged hurricane-aid abuses

FIRST ON FOX: The Trump administration suspended a U.S. territory’s housing-finance authority from receiving further federal funding after the Department of Housing and Urban Development cited years of alleged financial mismanagement, dire audit findings and the conviction of a former executive in a disaster-recovery contracting scheme. The suspension over alleged waste and abuse at the Virgin Islands Housing Finance Authority (VIHFA) comes as HUD Secretary Scott Turner, a member of the White House Task Force to Eliminate Fraud, ramps up the administration’s scrutiny of federal grant recipients following a series of high-profile investigations nationwide. “The Trump administration is changing the game when it comes to who we entrust with taxpayer dollars. Organizations riddled with corruption, mismanagement and crime will no longer be allowed to squander billions,” Turner, a former NFL cornerback, told Fox News Digital. TIM WALZ BECOMES GOP PUNCHLINE IN SWEEPING NEW WAR ON WELFARE FRAUD “[VIHFA] officials cannot be allowed to prioritize kickbacks over helping families recover from disasters. I promised that HUD would be a faithful steward of the American people’s hard-earned money, and we are keeping that promise.” Turner said the suspension is “effective immediately,” as the HUD chief’s deputy Andrew Hughes fired off a 13-page letter to VIHFA official Dayna Clendinen laying out HUD’s findings and alerting that they are barred from future federal procurement while an investigation takes place. When approached for comment, a representative who picked up the phone at VIHFA on Monday directed Fox News Digital to a full voicemail box. Fox News Digital then reached out via VIHFA’s contact page for comment. Fox News Digital also reached out to Del. Stacey Plaskett, D-V.I., and Democratic Virgin Islands Gov. Albert Bryan’s office for additional comment. VANCE REFERS TIM WALZ, MINNESOTA ATTORNEY GENERAL TO DOJ FOR CRIMINAL INVESTIGATION OVER STATE’S ALLEGED FRAUD In the letter, HUD claimed the nearly-$2 billion appropriation to VIHFA was intended for recovery after Hurricanes Irma and Maria devastated the American archipelago in 2017 – calculated to about $20,000 per USVI resident. “Nine years later, because of VIHFA’s blatant mismanagement of these critical disaster funds, USVI citizens still do not have the housing and electrical power they were promised nearly a decade ago,” the agency said, citing the prevalence of blue-tarped roofs and shoddy infrastructure, including a teetering power grid in the time since. HUD said audits found disaster recovery spending lagged badly while administrative spending consumed a disproportionate share of available funds. The agency also cited the former COO’s criminal kickback scheme as evidence of weak internal controls. JACOB FREY PRAISES SOMALI COMMUNITY AS MINNESOTA FACES RENEWED SCRUTINY OVER FRAUD INVESTIGATIONS VIHFA’s former chief operating officer, Darin Richardson, was sentenced in March to 36 months in prison after being convicted of bank fraud, money laundering, making false statements and criminal conflict of interest. Prosecutors said Richardson received $107,000 from a contractor in connection with the scheme. HUD said the misconduct occurred “during execution of his duties” at VIHFA. That contract was later inflated by 50% from $3 million to $4.5 million, HUD said in its letter, adding that much of the lumber then was allowed to rot in the tropical sun. HUD said Richardson’s conduct, standing alone, was sufficient to call into question VIHFA’s responsibility to receive additional federal funds. HUD informed VIHFA it has “substantial evidence” of failure-to-comply with aid obligations, a lack of internal controls over financial matters, fraud risks and conflict-of-interest situations. “[VIHFA] has failed to implement effective fraud controls despite the indictment and conviction of its former COO in a federal contracting fraud scheme. It has repeatedly made false certifications to HUD that it has proficient financial controls, has safeguards to prohibit conflicts of interest, has not obtained duplicate federal benefits, and complies with applicable laws and regulations,” HUD alleged in their suspension notice. HUD cited multiple audits spanning a decade that raised “significant concerns” about funding-related activities – which collectively questioned millions in costs and uncovered weak financial controls, inadequate project oversight, poor fraud-risk management and inaccurate reporting. A 2026 audit concluded VIHFA had failed to implement a structured fraud prevention framework despite overseeing $1.9 billion in disaster recovery funding. Further condemning the “glacial” pace of storm recovery, HUD found that only 2% of planned single-family rentals, 16% of single-family homeowners and 19% of multifamily rental projects had been completed since the storms struck nearly a decade ago. None of 329 housing-work mitigation projects had been finished, while HUD found a “yawning gap” between high expenditures by VIHFA on administrative concerns and low expenditures on residents and their homes. “Whether poor management or something worse, the consequences are unacceptable– the residents of the USVI who were devastated by disaster are not getting what they need from VIHFA,” HUD wrote to the authority. VIHFA spent $52.6 million on administrative costs alone, according to its report. HUD also found VIHFA’s divisions unwisely “operate in silos,” hindering communication and fraud-risk management. The agency told VIHFA that the HUD inspector general’s office also found that employees had personal knowledge of fraud or suspected fraudulent activity – but then VIHFA failed to conduct further investigations or alert its senior management. The auditing apparatus of VIHFA only notified then-directors of the divisions involved, who allegedly “sat on the findings” according to HUD’s recounting of a 2023 IG probe. That along with the material facts behind Richardson’s convictions bolster Turner’s decision to cut off VIHFA, the agency wrote. SIGN UP TO GET THE POLITICS NEWSLETTER “An officer corruptly awarding disaster clean up contracts violates, at minimum, HUD rules on oversight of contractors,” HUD said, citing Richardson’s kickbacks of at least $107,000 in one case. VIHFA will have 30 days to request a hearing on the matter or HUD’s funding suspension will be final, Hughes said. The suspension marks the latest front in the feds’ anti-fraud campaign, which has now stretched from the massive Feeding Our Future prosecution in the cold northern reaches of Minnesota now to the southern, sunny confines of Charlotte Amalie.

Republicans defy Trump, jump into South Carolina Senate race despite his handpicked successor

Republicans defy Trump, jump into South Carolina Senate race despite his handpicked successor

President Donald Trump has made his pick to replace the late Sen. Lindsey Graham, R-S.C., but several Republicans eyeing his seat don’t care. A handful of hopefuls vying to win the Republican nomination in August to take the reins from Graham have already announced their intent to jump into the race, despite Trump throwing his endorsement power behind Sen. Darline Graham, R-S.C., Graham’s sister who many believed to be a placeholder for the remainder of his term. Trump on Friday, after meeting with Graham in the Oval Office, announced his “complete and total endorsement” for her to get into the race. TIM SCOTT SAYS HE’D ‘LOVE TO SEE’ FOX NEWS HOST REPLACE LINDSEY GRAHAM “I asked Darline, for the Good of our Nation, to run for the U.S. Senate in the Special Republican Primary on Tuesday, August 11, 2026,” Trump said. “I hope Darline does this, in that there would be nobody better to honor the legacy of her beloved brother, Lindsey.” She has not yet committed, and the coveted Trump endorsement has not stopped Rep. Ralph Norman, R-S.C., businessman Mark Lynch or the latest to jump in, Rep. Russell Fry, R-S.C., from entering the fray. Fry, in particular, was just last week lauded by Trump as someone to watch. He also had spent time speaking with White House operatives about launching a bid, and a Trump endorsement seemed all but guaranteed. GRAHAM’S DEATH IGNITES GOP SCRAMBLE FOR SENATE SEAT AS TRUMP HINTS HE ALREADY HAS A FAVORITE A source in Fry’s political orbit told Fox News Digital that the lawmaker has “accomplished more than all the potential candidates combined,” having passed three bills in his first four years in Congress. “This is really about giving voters a choice and not a coronation,” they said. Still, Fry is not running away from Trump. In his campaign announcement, Fry noted, “Of the many things Lindsey Graham believed in, standing with President Trump and advancing the Republican agenda were among his defining principles.” “There is no other way to put it: Lindsey Graham was one of a kind,” Fry said. “There is no replacing him, but I believe the best way to honor his legacy is to fight alongside the president just as steadfastly as he did.” During this cycle, at least, the Trump endorsement has not proven a sure bet. South Carolina-based Republican consultant Dave Wilson told Fox News Digital, “South Carolina voters want to have a choice and not be told who they need to be voting for.” GRAHAM ALLY RIPS ‘THIRSTY’ REPUBLICANS JOCKEYING TO REPLACE LATE SENATOR “The president’s quick endorsement of Darline Graham was very symbolic,” Wilson said, but added, “We’re seeing in South Carolina that his endorsement didn’t carry as much weight as people thought it was going to.” Wilson was referring to Trump’s endorsement of Lt. Gov. Pamela Evette ahead of last month’s GOP gubernatorial primary. Evette was the top vote getter in the primary but lost the ensuing runoff election against South Carolina Attorney General Alan Wilson in a landslide. And Trump, ever hungry for a victory, endorsed both Wilson and Evette days before the runoff. Veteran Republican strategist and communicator Ryan Williams told Fox News Digital that a Trump endorsement is “a major boost for any candidacy, but it doesn’t necessarily give you a lock on the seat.” Just because Trump has thrown his weight behind Graham doesn’t mean others shouldn’t run, Williams contended. He noted that Senate seats rarely open up in South Carolina, and that when the opportunity presents itself, hopefuls need to seize it. “If you’re an aspiring House member in South Carolina, this is your time to run regardless of whom the president is supporting,” Williams said. “There’s no downside for running,” he continued. “They’re all going to run as Trump Republicans, and they’re all going to flatter the president on the campaign trail.”

US bases, ICE facilities targeted in Cuba-linked 24-hour activist mobilization plan

US bases, ICE facilities targeted in Cuba-linked 24-hour activist mobilization plan

A new State Department report argues that Cuba has cultivated a network of American activist organizations that can be mobilized against U.S. policy, citing a publicly posted plan for protests at U.S. military bases, Immigration and Customs Enforcement (ICE) facilities and federal buildings as a recent example. The June “National Rapid Response Plan” was distributed by the National Network on Cuba, a U.S. coalition of more than 60 organizations. The State Department links the coalition to the Cuban government through its relationship with the Cuban Institute of Friendship with the Peoples, or ICAP, a government entity sanctioned in June for allegedly supporting Cuban intelligence activities. The plan calls for “coordinated nationwide actions” within 24 hours of a U.S. military attack — or the “imminent threat” of one — and says its goal is to make it “politically and materially costly for the U.S. government to wage war on Cuba.” TRUMP EXPANDS CUBA SANCTIONS BEYOND US COMPANIES IN MAJOR CRACKDOWN ON FOREIGN ENABLERS The plan already has been made publicly available. The State Department report presents it as evidence of what it describes as a broader Cuban effort to cultivate and mobilize sympathetic organizations inside the U.S. The National Network on Cuba’s “materials reveal the continuing reach, coordination and sophistication of Cuba’s subversive capabilities on American territory,” the State Department report claims. The rapid-response plan calls for demonstrations and establishes a timeline for activating supporters nationwide. If U.S. military action against Cuba begins before 3 p.m. Eastern time, demonstrations would start at 6 p.m. local time that day. If it begins later, activists would mobilize at 6 p.m. the following day. Organizers are instructed to gather at federal buildings, courthouses and post offices; military bases and recruiting offices; or ICE detention centers and field offices. The plan also lists sports arenas during high-profile events as optional locations. The State Department’s focus on the plan comes amid escalating U.S. pressure on Havana and discussion of possible military intervention or regime change. Trump has floated a “friendly takeover” of Cuba and, when asked in May about intervening, said “it looks like I’ll be the one that does it.” Secretary of State Marco Rubio has said the administration prefers diplomacy while leaving military action on the table. FBI ARRESTS PROTESTER WHO THREATENED TO KILL ICE OFFICER’S FAMILY AT NJ DETENTION CENTER PROTEST, BLANCHE SAYS The plan says demonstrations at immigration facilities would “connect Cuba solidarity to anti-ICE/immigrant defense work happening nationwide.” It also directs activists to a Black Alliance for Peace database that the State Department report says maps 1,335 U.S. military and law-enforcement locations across the Western Hemisphere. The group describes the map as a basis for local organizing that can help activists “strategize how and where to organize and agitate.” The National Network on Cuba openly promotes the plan on its website as part of its “No War on Cuba” campaign, alongside calls for rallies, banner drops, caravans, teach-ins and other demonstrations. INSIDE CUBA’S FOREIGN INFLUENCE CAMPAIGN: FROM THE ’60S VENCEREMOS BRIGADE TO A CALIFORNIA UNION HALL The State Department report portrays the plan as a modern example of Cuba’s broader effort to cultivate and mobilize sympathetic organizations inside the United States. The National Network on Cuba represents more than 60 organizations and works closely with the Cuban Institute of Friendship with the Peoples. ICAP is led by Fernando González Llort, a former member of Cuba’s Wasp spy network, a Cuban intelligence ring that infiltrated exile organizations and gathered information about U.S. military facilities in South Florida during the 1990s, who served 15 years in a U.S. prison before returning to the island. The report describes ICAP as the central hub of Cuba’s international influence operation, claiming it coordinates more than 2,000 solidarity organizations across more than 150 countries. The Cuban embassy in Washington could not immediately be reached for comment. The report focuses particular attention on six organizations spanning Cuban government outreach and American left-wing activism. ICAP is a Cuban government entity, while the National Network on Cuba is a U.S.-based coalition of more than 60 organizations advocating closer relations with Havana. The other groups are U.S.-based: Code Pink is a left-wing anti-war organization; the People’s Forum is a New York-based activist and political education center; the Democratic Socialists of America is a socialist political organization; and the National Lawyers Guild is a progressive legal association. Code Pink, the Democratic Socialists of America and the National Lawyers Guild’s Cuba Committee are listed as members of the National Network on Cuba, alongside the Communist Party USA and dozens of smaller organizations. The extent of each organization’s involvement in the rapid-response plan is unclear. The report argues that their overlapping relationships, delegations and campaigns give Cuba access to a broad American activist infrastructure. The report says the Democratic Socialists of America has sent multiple delegations to Cuba, including a 2023 trip during which members met privately with Cuban President Miguel Díaz-Canel and sought to establish formal communication with Cuban ministries. It notes, however, that the Democratic Socialists of America was not created or controlled by Cuban intelligence, describing its support for Havana as primarily ideological. The People’s Forum, meanwhile, is described as a major organizing hub connecting Cuba advocacy with anti-ICE and pro-Palestinian activism. The report says the organization has served as fiscal sponsor for the Venceremos Brigade, which has transported American activists to Cuba for decades, and has helped organize delegations that met with senior Cuban officials. Code Pink and the National Lawyers Guild also have participated in Cuba delegations and campaigns opposing the U.S. embargo, according to the report. The National Lawyers Guild adopted a resolution in 2026 pledging to work with the National Network on Cuba and the broader Cuba solidarity movement. The report does not announce sanctions or legal action against the U.S.-based organizations, and much of its underlying evidence comes from public records, organizational materials and previous reporting. Its central conclusion is that Cuba treats traditional espionage, political advocacy and ideological influence as parts of a single