Brandon Johnson’s progressive tax push puts Chicago on brink of rare shutdown as mayor weighs veto
A potential veto of Chicago’s 2026 budget by Mayor Brandon Johnson could trigger the Windy City’s first-ever municipal shutdown. Johnson reportedly rebuked the budget passed by council over the weekend, which lacks the mayor’s favored per-employee “head tax” on corporations, as “morally bankrupt.” If Johnson were to veto the budget, it would place the onus back on city council to rehash a plan that could get signed before Dec. 30 – or plunge the city into shutdown. RECORDS REVEAL CHICAGO MAYOR’S ‘GIFT ROOM’ WAS CONSTRUCTED AFTER INVESTIGATORS TURNED AWAY City Council lacks any Republican representation – with a Democratic majority of 48 plus two independents, so the situation represents a clash within factions of the left. One such Democratic critic was Alderman Gilbert Villegas of Belmont-Cragin on the city’s northwest side. Villegas, a noted ally of ex-Mayor Lori Lightfoot, tweeted that he will “work hard to see if we can get 38-40 votes to override the veto” – noting that it originally passed 30-18. Chicago faces a projected $1.2 billion shortfall for 2026. Johnson has argued that policies under the Trump administration favor corporations over working-class families and that businesses should “put more skin in the game.” HOW TRUMP CAN TURN THE TABLES ON THE LEFT WITH A RADICAL TAX PLAN But not all Democrats in Illinois agree. Gov. JB Pritzker has criticized the proposed $33-per-worker, per-month head tax, warning it would “penalize the very thing that we want, which is more employment.” Johnson also rebuked the Washington Post for its scathing editorial entitled, “Chicago Has Lost Its Mind,” which argued the head tax and other pressures on businesses will stifle economic growth. Johnson quipped that the paper “wouldn’t be the first time a publication got something I’ve done wrong.” CHICAGO MAYOR CREATES ‘ICE-FREE ZONES’ TO BLOCK FEDERAL AGENTS FROM CITY PROPERTY Items in the council’s budget include legalized video-gambling machines at eateries and Chicago-Midway Airport, raising the shopping-bag tax and a nationally unique proposal to tax social media companies – levying $0.50-per active Chicago user beyond 100,000 users that a platform has – with an expected windfall of $31 million, if approved. While a shutdown would be a novel development, late-year budget vetoes in Chicago are not. Popular 1980s Democratic Mayor Harold Washington vetoed several budgets in that decade, which often led to successful last-minute negotiations. Washington, the city’s first Black mayor, vetoed four budgets during his four-and-a-half-year tenure, which ended abruptly when he unexpectedly died in office after his 1987 re-election at age 65. A top Johnson ally, Alderman Pat Dowell of the South Side, is leading the pro-budget coalition, according to the Chicago Sun-Times. She said the council’s proposal is “not perfect but is a good budget and one we can work with.” Alderman Byron Sigcho-Lopez, a progressive from the West Side, meanwhile voiced support for Johnson’s head-tax proposal and slammed council’s oppositional plan as an “immoral, bankrupt, ‘Michael Sacks’ budget.” Sacks, a billionaire financier who runs asset manager GCM Grosvenor, is an ally of former Mayor Rahm Emanuel and donated directly to several aldermen’s campaigns before the budget fight, according to WGN. Alderman Bill Conway III, a former military intel officer who represents “The Loop” in the heart of downtown, defended Sacks, telling WGN, “Michael is someone who cares about the future of the city, and he tries to work with those who are like-minded.” Fox News Digital reached out to Johnson’s office for comment.
Trump and first lady go all black for official White House Christmas portrait photo
President Donald Trump and first lady Melania Trump went all black for their official Christmas portrait photo. The White House on Tuesday released the image, showing the president dressed in a tuxedo with a white shirt and Melania Trump in a sleek black dress. The photo was taken on Dec. 7 in the Cross Hall of the White House. The first lady selected the “Home is Where the Heart Is” theme for the White House Christmas decor. MELANIA TRUMP GIVES TOUR OF 2018 WHITE HOUSE CHRISTMAS DECOR The halls of the White House are decked with more than 25,000 feet of ribbon; more than 2,000 strands of light; more than 120 pounds of gingerbread; more than 2,800 gold stars; more than 10,000 blue butterflies; and more than 700 feet of garland. The White House has 51 Christmas trees and 75 of Trump’s signature Christmas wreaths. The wreaths have classic red bows and hang outside the windows of the White House. WHITE HOUSE UNVEILS CHRISTMAS DECOR WITH ‘SPIRIT OF AMERICA’ THEME “This season also invites us to reflect on the blessings we share,” the White House Christmas message states. “For nearly 250 years, our Nation has grown through the hopes and hard work of families who believed in something greater than themselves. Their example inspires us today, especially at Christmas, when we gather with loved ones to celebrate the faith, family, and freedom that define our national story.” The White House reopened its doors for public Christmas tours on Dec. 2, Fox News Digital reported. The tours feature the White House Christmas decorations on the state floor and give visitors the opportunity to “enjoy the beloved annual tradition that transforms the White House into a festive reflection of the spirit, warmth, faith, and hope of the holiday season.”
Boasberg orders Trump to bring back CECOT migrant class deported in March
A federal judge on Monday ordered the Trump administration to provide due process to a class of Venezuelan migrants deported to El Salvador in March, and gave it two weeks to detail how it will do so – setting up another high-stakes clash between the White House and the federal courts. In March, U.S. District Judge James Boasberg ordered the Trump administration to halt its plans to immediately use the 1798 Alien Enemies Act wartime immigration law to quickly deport hundreds of Venezuelan migrants to CECOT, a Salvadoran maximum-security prison. That did not happen, and the planes landed in El Salvador hours later. Boasberg concluded that the Trump administration’s actions were illegal, conducted in defiance of the court, and deprived the migrants in the CECOT class of their due process protections – including prior notice of removal, a “meaningful opportunity” to contest their removal from the U.S., and the ability to dispute their designation as a member of the Tren de Aragua gang. He ordered the Trump administration to submit to the court by Jan. 5 its plan to provide due process protections to the CECOT class – which he said the administration could do by either returning the migrants to the U.S. to have their cases heard in person, or to otherwise facilitate hearings abroad with members of the class that “satisfy the requirements of due process.” “On the merits, the Court concludes that this class was denied their due-process rights and will thus require the Government to facilitate their ability to obtain such hearing,” Boasberg said Monday. “Our law requires no less.” APPEALS COURT BLOCKS TRUMP ADMIN’S DEPORTATION FLIGHTS IN ALIEN ENEMIES ACT IMMIGRATION SUIT The Justice Department is almost certain to appeal the order. Monday’s ruling adds new clarity to a complex immigration case that began 10 months prior, and which sparked a flurry of appeals, contempt inquiries and open questions as to the status of the CECOT plaintiffs and the ability the U.S. has to order their return. Boasberg said Monday that the U.S. appeared to be operating with the knowledge that it had some level of constructive custody over the migrants detained at CECOT, citing the terms of an agreement made between the U.S. and El Salvador to house the migrants for at least a one-year period. He also cited multiple public remarks from Homeland Security Secretary Kristi Noem and other senior DHS officials, which appear to cast CECOT as an “extension” of U.S. detention facilities. “These statements strongly undermine the Government’s contention that El Salvador retains complete discretion over what to do with individuals” removed from the U.S., he noted. JUDGES V TRUMP: HERE ARE THE KEY COURT BATTLES HALTING THE WHITE HOUSE AGENDA If “secretly spiriting individuals to another country were enough to neuter the Great Writ, then the Government could ‘snatch anyone off the street, turn him over to a foreign country, and then effectively foreclose any corrective course of action,’” Boasberg concluded. The update comes after the court’s inquiry had been stalled for months, both by appeals court rulings, efforts to shield certain information from the court for national security purposes, and a separate, but related, contempt inquiry. The CECOT migrants were again moved in July from the Salvadoran prison to Venezuela as part of a broader prisoner exchange that involved the return of at least 10 Americans detained in Venezuela. That step further complicated efforts to ascertain the status of the migrants, some of whom had fled Venezuela and were in hiding. That made it difficult to contact the migrants from the CECOT class and determine how many of them still wished to proceed with their due process cases, as ACLU attorney Lee Gelernt, the lawyer representing the plaintiffs, told Boasberg in court last month. The ACLU said this month that, of the 252 Venezuelan migrants deported to CECOT in March, 137 of them still wished to move forward with the due process cases. US JUDGE VOWS TO RULE ‘SOON’ ON ABREGO GARCIA’S FATE AFTER MARATHON HEARING Still, the new ruling is almost certain to face fierce opposition from Trump officials, who have assailed Boasberg and other judges who have blocked or paused the president’s flurry of executive orders as “rogue, activist” judges, whom they argue are overstepping their authority. They argue that lower court judges should not have the power to prevent the president from executing what administration officials say is a lawful agenda – though the judges in question have disagreed that the president’s actions all follow the law. Boasberg, the chief judge for the U.S. District Court, has appeared unfazed by the new level of scrutiny. He told the Justice Department in November that he “certainly intends to determine what happened” on the day the government either intentionally or unintentionally violated his emergency order intended to halt the Alien Enemies Act removals. The government, he said, “can assist me to whatever degree it wishes.”
Trump trade crackdown hits cheap food containers from China, Vietnam with massive new duties
The Trump administration is dropping the hammer on cheap imports of disposable food containers from China and Vietnam, announcing massive trade penalties that experts say will lead to safer products while simultaneously protecting U.S. companies from unfair competition. “America continues to thrive when fair competition occurs,” attorney Yohai Baisburd of Cassidy Levy Kent, counsel to the American Molded Fiber Coalition, told Fox News Digital Tuesday. “The Trump Administration is using every tool in the toolbox to enforce U.S. trade laws and cheaters beware because they are coming after you.” Baisburd, whose legal background focuses on trade litigation, was reacting to the U.S. International Trade Commission (ITC) announcing recently that its board voted to rule that U.S. industry is materially injured by importing “thermoformed molded fiber products from China and Vietnam.” Baisburd argued on behalf of U.S. companies as the International Trade Commission considered the case. Thermoformed molded fiber products are common food containers — including disposable bowls, plates, cups and containers for ready to make meals or take-out containers — made from natural fibers and recycled products, such as wood pulp. The fibers are turned to pulp before they’re molded, and then shaped using heat and pressure. CBP ANNOUNCES RECORD-BREAKING $200 BILLION IN TARIFF REVENUE AMID TRUMP ADMINISTRATION ENFORCEMENT PUSH The U.S. market has been flooded with such products from China and Vietnam, with the nations “dumping” the containers at unfairly low prices that affect American businesses, according to the United States International Trade Commission. Following the vote from the ITC, the Commerce Department will issue final antidumping (AD) and countervailing (CVD) duty orders on those imports from China and Vietnam. Antidumping and countervailing duties are special trade penalties — in addition to typical tariffs — that the U.S. imposes on imports found to be unfairly underpriced in order to level the playing field for American companies. TRUMP SAYS THOSE AGAINST TARIFFS ‘SERVING HOSTILE FOREIGN INTERESTS,’ ‘FULL BENEFIT’ YET TO BE SEEN The new orders are expected in the coming weeks, with ITC expected to release its report by Jan. 23. The duties will include an upward of 540% tax on certain Chinese producers — including a 477%-plus tax for “dumping” alone — and a 260%-plus tax on Vietnamese producers of the thermoformed molded fiber packaging products, ITC data shows. “The ITC vote will give the U.S. industry at least five years of duties on unfairly traded products from China and Vietnam,” Baisburd said. “The ITC confirmed that the U.S. industry is severely injured by the corrosive impact of Chinese and Vietnamese imports. The ITC also authorized retroactive duties on Vietnamese imports. This is only one of a handful of times they have done so in the past 25 years sending a message to importers that they cannot surge into the U.S. market to try to get ahead of potential duties.” Baisburd said that the upcoming duties will “level the playing field” for U.S. industry against cheap imports. “U.S. workers/companies can compete against anyone, anywhere. What they can’t do is outcompete Chinese and Vietnamese government subsidies that violate US trade laws. The duties allow US manufacturers to reinvest in their workers, operations, technology, because they can now compete on a level playing field,” he said. The duty orders are separate from the Trump administration’s tariffs on foreign nations, Fox News Digital learned. The tariffs are subject to change and negotiation, while the duties are legally binding trade enforcement mechanisms based on investigative findings by the U.S. Department of Commerce and International Trade Commission, and enforced by Border Patrol. The duties are applicable for the next five years minimum and are not subject to presidential discretion, Fox News Digital learned. TRUMP’S SIGNATURE TARIFFS HANG ON KEY QUESTION ABOUT CONGRESS’ POWER BEFORE SUPREME COURT Other presidential administrations have used antidumping and countervailing duties to level the playing field for U.S. companies, including the Biden administration touting in 2024 that it leveled more than 30 new antidumping and countervailing duties on steel-related products alone. Baisburd argued that the Trump administration broadened its tool chest for an all-encompassing approach to protecting U.S. manufacturing. “The Trump Administration is taking advantage of all the enforcement tools available across the Federal government to support U.S. manufacturing. We are seeing increased customs enforcement (both civil and criminal), a new DOJ Trade Fraud Taskforce, and greater scrutiny of supply chain shifts that circumvent duties,” the attorney said. In addition to business concerns about the Asian nations boxing out the U.S. market for food service containers, health concerns also have simmered. China and Vietnam have been identified as nations that produce containers with “forever chemicals,” or per- and polyfluoroalkyl substances (PFAs). An ITC report published in 2024 found that while some foreign nations claim products are PFAs-free, studies indicate that it is not always true, while the U.S. “generally produces PFA-free products.” The vote marks the third recent trade ruling that affects disposable food service containers. The U.S. Department of Commerce ITC issued antidumping and countervailing duties on disposable aluminum containers, pans, trays and lids imported from China and elsewhere, as well as leveling antidumping and countervailing duties on low-cost white paper plates from China, Thailand and Vietnam in March.
Epstein file drop includes ‘untrue and sensationalist claims’ about Trump, DOJ says
The Department of Justice warned Tuesday that some documents in the latest batch of files it published related to Jeffrey Epstein included false and unverified information about President Donald Trump. The DOJ wrote in a statement that the material included “untrue and sensationalist claims” about the president that the FBI received ahead of the 2020 election. “To be clear: the claims are unfounded and false, and if they had a shred of credibility, they certainly would have been weaponized against President Trump already,” the DOJ wrote on social media, adding that it published the documents because of its “commitment to the law and transparency.” The documents included an email sent by an unnamed federal prosecutor with the U.S. attorney’s office in the Southern District of New York on Jan. 7, 2020, saying Trump flew on Epstein’s private jet at least eight times in the 1990s. Epstein and his associate Ghislaine Maxwell accompanied Trump on some of the flights, and two of the flights included passengers who were “possible witnesses in a Maxwell case,” the prosecutor wrote. The U.S. attorney’s office “didn’t want any of this to be a surprise down the road,” the prosecutor wrote. The documents also indicated a number of tips that were provided to the FBI about Trump’s alleged involvement with Epstein in the early 2000s. Trump has said he ended his friendship with Epstein before Epstein faced charges. It is unclear what was done with the information provided in the documents, or whether any of it was corroborated or used in the prosecutions of Epstein and Maxwell. The DOJ has been sharing on a public website since Friday tens of thousands of pages of files related to Epstein’s and Maxwell’s sex-trafficking cases. Maxwell was found guilty in 2021 of trafficking minors, while Epstein died in 2019 in prison by suicide, authorities say. SCHUMER ACCUSES DOJ OF BREAKING THE LAW OVER REDACTED EPSTEIN FILES Among the files was also a letter Epstein appeared to have written to former physician Larry Nassar, a convicted child molester, that was postmarked three days after Epstein died and referenced Trump. “Our president also shares our love of young, nubile girls,” the letter read. The document’s authenticity is unknown. Accompanying it was an FBI request to conduct a handwriting analysis of it. The latest trove of documents came as part of the DOJ’s response to the Epstein Files Transparency Act, a law passed last month that imposed a 30-day deadline on the department to release all unclassified material related to the cases. The last batch of documents included several photos of former President Bill Clinton, who was pictured in a pool and hot tub. A woman whose face was redacted was featured in the latter. A Clinton spokesperson responded by demanding the DOJ release all the files and that refusal to do so would confirm the DOJ was “not about transparency, but about insinuation.” The spokesperson noted that Clinton’s name has “repeatedly” been cleared by prosecutors. CLINTON TEAM DEMANDS TRUMP DOJ RELEASE ‘ANY REMAINING’ DOCS RELATED TO FORMER PRESIDENT, EPSTEIN The transparency bill allowed the DOJ to withhold information about potential victims and material that could jeopardize open investigations or litigation. Officials could also leave out information “in the interest of national defense or foreign policy,” the bill said. But the bill explicitly directed the DOJ not to redact any details that could be damaging to high-profile and politically connected people. The file rollout has stirred controversy as critics have aired grievances about over-redactions and the law’s lapsed deadline. Trump signed the bill into law on Nov. 19, meaning the statutory deadline for all the files to be released was Dec. 19. The DOJ has said more files are forthcoming by the new year. Deputy Attorney General Todd Blanche said on “Meet the Press” on Sunday there was “well-settled law” that supported the DOJ missing the bill’s deadline because of a need to meet other legal requirements, like redacting victim-identifying information. Bill Mears contributed to this report.
Lawmakers probe SBA loans linked to Minnesota’s $9B fraud scandal: ‘Reckless decision making’
FIRST ON FOX: The House Small Business Committee sent a letter this week to the Small Business Administration demanding answers on federal pandemic relief funds that flowed from the Biden administration to entities in Minnesota possibly connected to the massive unfolding fraud scandal. In a letter sent Monday to SBA Administrator Kelly Loeffler, the committee said it is conducting oversight into reports of fraud and concealment involving the Paycheck Protection Program (PPP) and the COVID-19 Economic Injury Disaster Loan (EIDL) program, both of which were created to help small businesses survive the COVID-19 pandemic. The letter cited public reporting and federal prosecutions tying Minnesota-based nonprofits and individuals to massive fraud schemes that drained hundreds of millions of dollars from federal programs under Democratic Gov. Tim Walz’s watch. The letter also points out that the Minnesota nonprofit Feeding Our Future was at the center of what the Justice Department has called the largest pandemic relief fraud scheme charged in U.S. history, with 78 individuals charged as of late November in a case involving roughly $250 million in fraudulent claims as part of an overall system of fraud that prosecutors said last week could total up to $9 billion or more. SOCIAL MEDIA ERUPTS AFTER MINNESOTA AG POSTS ABOUT CRACKING DOWN ON FRAUD: ‘YOU’RE KIDDING RIGHT?’ “The SBA’s COVID lending programs were created to keep small businesses afloat during an unprecedented crisis, not to subsidize fraud,” Small Business Committee Chairman Roger Williams, R-Texas, told Fox News Digital in a statement. “Under the Biden-Harris administration, weak oversight and reckless decision-making allowed bad actors to exploit these programs and steal hundreds of millions in taxpayer dollars. The Feeding Our Future case highlights the severity of these failures, and the Committee on Small Business is determined to hold those responsible accountable.” The committee’s letter requests detailed records on PPP and EIDL loans issued to dozens of individuals and businesses tied to Minnesota-based fraud investigations, including loan amounts, disbursement dates, forgiveness decisions and internal SBA communications. MEDIA ‘COMPLICITY’ BLAMED AS FEDS SAY MINNESOTA FRAUD CRISIS COULD REACH $9B: ‘SHOWN THEIR TRUE COLORS’ Lawmakers are also seeking all documents and communications between the SBA and Walz’s office or Minnesota state agencies during the Biden-Harris administration, arguing such records are necessary to determine whether warning signs were ignored or oversight failed. In a statement to Fox News Digital, Loeffler says she is looking forward to working with Congress to get to the bottom of the situation. “Earlier this month, SBA determined that numerous Somali nonprofits indicted as part of the $1 billion pandemic fraud scandal in Minnesota received PPP and EIDL Loans totaling at least $2.5 million, including Feeding Our Future,” Loeffler said. “SBA has since broadened its investigation to uncover pandemic-era fraud across the entire state of Minnesota and looks forward to working in partnership with Congressional leaders to uncover the full depth of the abuse and deliver accountability on behalf of American taxpayers.” The letter asks for the documents to be provided by Jan. 12, 2026. On Tuesday, Fox News Digital first reported that Loeffler sent a letter to Walz alerting him that her agency will “halt” more than $5.5 million in annual support to resource partners in the state “until further notice.”
Former GOP Sen. Ben Sasse reveals stage-4 cancer diagnosis: ‘It’s a death sentence’
Former U.S. Sen. Ben Sasse of Nebraska announced on Tuesday that he has been diagnosed with metastatic stage-four pancreatic cancer, candidly calling it “a death sentence.” “This is a tough note to write, but since a bunch of you have started to suspect something, I’ll cut to the chase: Last week I was diagnosed with metastasized, stage-four pancreatic cancer, and am gonna die,” Sasse wrote in a post on X. “Advanced pancreatic is nasty stuff; it’s a death sentence. But I already had a death sentence before last week too — we all do,” he continued. BARRY MANILOW TO UNDERGO SURGERY FOR ‘CANCEROUS SPOT’ ON LUNG, CREDITS ‘PURE LUCK’ FOR EARLY DETECTION Sasse, who is just 53 years old, noted, “I’ve got less time than I’d prefer.” But he also expressed his eternal hope, noting that he is a Christian. “As a Christian, the weeks running up to Christmas are a time to orient our hearts toward the hope of what’s to come,” he wrote. “Not an abstract hope in fanciful human goodness; not hope in vague hallmark-sappy spirituality; not a bootstrapped hope in our own strength (what foolishness is the evaporating-muscle I once prided myself in). Nope — often we lazily say ‘hope’ when what we mean is ‘optimism.’ To be clear, optimism is great, and it’s absolutely necessary, but it’s insufficient. It’s not the kinda thing that holds up when you tell your daughters you’re not going to walk them down the aisle. Nor telling your mom and pops they’re gonna bury their son,” he noted. MIAMI BASKETBALL’S MARCUS ALLEN BEGINS CHEMOTHERAPY AFTER CANCER DIAGNOSIS, WILL MISS REST OF SEASON “Those who know ourselves to need a Physician should dang well look forward to enduring beauty and eventual fulfillment. That is, we hope in a real Deliverer — a rescuing God, born at a real time, in a real place. But the eternal city — with foundations and without cancer — is not yet,” he wrote. Sasse served in the Senate from early 2015 through early 2023, then went on to serve as president of the University of Florida. Last year he stepped down from the helm of the university, pointing to his wife’s epilepsy diagnosis. “My wife Melissa’s recent epilepsy diagnosis and a new batch of memory issues have been hard, but we’re facing it together,” he noted in explaining his move last year. “Our two wonderful daughters are in college, but our youngest is just turning 13. Gator Nation needs a president who can keep charging hard, Melissa deserves a husband who can pull his weight, and my kids need a dad who can be home many more nights. I need to step back and rebuild more stable household systems for a time.” THERE’S ‘WAY TOO LITTLE EDUCATION HAPPENING ON ELITE CAMPUSES’: BEN SASSE CLICK HERE TO GET THE FOX NEWS APP Vice President JD Vance was among those who responded to Sasse’s grim cancer announcement on Tuesday. “I’m very sorry to hear this Ben. May God bless you and your family,” Vance wrote. Sasse noted in his message, “I’ll have more to say. I’m not going down without a fight. One sub-part of God’s grace is found in the jawdropping advances science has made the past few years in immunotherapy and more. Death and dying aren’t the same — the process of dying is still something to be lived. We’re zealously embracing a lot of gallows humor in our house, and I’ve pledged to do my part to run through the irreverent tape. “But for now, as our family faces the reality of treatments, but more importantly as we celebrate Christmas, we wish you peace: ‘The people walking in darkness have seen a great light; on those living in the land of deep darkness a light has dawned….For to us a son is given’ (Isaiah 9),” he wrote.
Trump official freezes millions in SBA aid to Minnesota, slams Walz’s policies as breeding ‘endemic’ fraud
EXCLUSIVE: Federal Small Business (SBA) Administrator Kelly Loeffler sent a letter Tuesday to Minnesota Gov. Tim Walz alerting him that her agency will “halt” more than $5.5 million in annual support to resource partners in the state “until further notice.” The move comes as Walz and his administration grapple with billions of dollars in social services fraud. U.S. Attorney Joseph Thompson said Thursday a “significant amount” of $18 billion worth of Medicaid funding was likely lost to fraud. “I am notifying you that effective immediately and until further notice, the SBA is halting the disbursement of federal funds to SBA resource partners operating in the state of Minnesota, totaling over $5.5 million in annual support,” Loeffler wrote Walz on Tuesday. TRUMP CABINET OFFICIAL CALLS ON WALZ TO RESIGN OVER MASSIVE FRAUD SCANDAL IN SCATHING LETTER: ‘SHAME ON YOU’ “This action is the result of a fundamental breakdown in the public trust. Under your leadership, Minnesota failed to safeguard taxpayer dollars, and SBA will not continue to place federal resources at risk in a state where oversight measures are ignored and accountability is abandoned.” Loeffler blamed Walz for making the Land of 10,000 Lakes the “epicenter” of the largest fraud scandal of the COVID-19 pandemic era, and that recent criminal convictions of Somalis and other figures prove such fraud is “endemic” to St. Paul’s vast welfare curriculum. She cited Thompson’s calculations, saying the Somali fraud network netted $1 billion in its Minneapolis-centered fraud scheme and at least half of certain Medicaid funding programs subsidized by Minnesota taxpayers have been “pocketed by criminals” – assessing the final figure to be at least $9 billion. HOW FEARS OF BEING LABELED ‘RACIST’ HELPED ‘PROVIDE COVER’ FOR THE EXPLODING MINNESOTA FRAUD SCANDAL She noted the USDA – which facilitates SNAP and other programs – as well as Treasury Secretary Scott Bessent, have launched probes into the scandals. At least $2.5 million in Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) funds issued during the pandemic were tied to the Somali fraud scheme, the SBA said. Another $430 million in PPP subsidies – totaling 13,000 individual loans – had been flagged as fraudulent but funded anyway, including some that were among those loans altogether forgiven during the Biden administration, Loeffler wrote. INSIDE MINNESOTA’S $1B FRAUD: FAKE OFFICES, PHONY FIRMS AND A SCANDAL HIDING IN PLAIN SIGHT “The volume and concentration of potential fraud is staggering, matched in its egregiousness only by your response to those who attempted to stop it,” she told Walz. “When legislators and whistleblowers raised concerns about potential abuse during the pandemic, your Administration resisted oversight, refused accountability, and allowed the misconduct to metastasize.” Loeffler faulted Walz for dismissing some criticisms of his administration’s “generosity” as “racism.” MEET MINNESOTA’S FRAUD ‘MASTERMIND’ ACCUSED OF PLAYING ‘GOD,’ WIELDING ‘FAKE’ RACISM CLAIMS IN SOMALI SCANDAL Walz previously said fraudsters in Minnesota will go to prison, and that “I don’t care what color you are [or] religion you are,” but followed up by saying that critics “demonizing an entire population” is “beneath that,” according to PBS. SBA will immediately halt $2.22 million in Small Business Development Center awards, $450,000 in women’s business center awards, $2.6 million in “microloan” awards – the entire 2025 disbursement – and about $550,000 in other disbursements. Loeffler called Minnesota’s fraud scandals the consequence of “socialist policies deliberately designed to pump out welfare funding without oversight or accountability.” “SBA’s responsibility is to taxpayers and small business owners, not to criminals or the politicians who enable them – We will continue to do what you did not: protect federal dollars on behalf of the American people,” she said. Fox News Digital reached out to Walz for any comment on general sentiments expressed in the letter about the fraud scandal and his handling of it.
GOP lawmaker unveils WALZ Act after billions lost in Minnesota fraud scandal
FIRST ON FOX: A Republican lawmaker has reacted to the massive unfolding fraud scandal in Minnesota with legislation aimed at preventing more taxpayer dollars from being wasted at the United States Department of Health and Human Services. Republican Rep. Mariannette Miller-Meeks has introduced the Welfare Abuse and Laundering Zillions Act, or the “WALZ Act,” which would require HHS’ Office of Inspector General to open investigations into any program that sees a 10% or greater increase in total payments over any six-month period within a fiscal year. Under the bill, HHS would no longer have discretion to ignore sudden billing increases that critics say often signal fraud schemes, particularly in large entitlement programs. The bill comes amid revelations in recent months that Minnesota’s federally funded health and nutrition programs were rife with fraud to the tune of potentially up to $9 billion, federal prosecutors said last week. OMAR ACCUSED BY GOP OPPONENT OF OPENING UP THE DOOR TO MASSIVE MINNEAPOLIS FRAUD: ‘DEEP, DEEP TIES’ Critics have made Walz the face of the scandal, given the fact that concerns over the fraud date back to 2019, when he took office and the inability of the state, which he serves as the top executive, to tackle the problem over the last five years. “This is on my watch,” Walz told reporters on Friday. “I am accountable for this. And more importantly, I am the one that will fix it.” MEDIA ‘COMPLICITY’ BLAMED AS FEDS SAY MINNESOTA FRAUD CRISIS COULD REACH $9B: ‘SHOWN THEIR TRUE COLORS’ Miller-Meeks told Fox News Digital the situation in Minnesota represents a “jaw-dropping failure of leadership.” “This is what happens when soft-on-crime Democrats run the show: zero accountability, zero oversight and taxpayers left holding the bag,” the Iowa Republican continued. “The WALZ Act is named for a reason, to ensure this level of negligence can never be repeated anywhere else in America. This bill puts hard safeguards in place to protect taxpayer dollars, shut the door on scam artists and bring real accountability back to government programs.” On Monday, a group of 98 Minnesota mayors raised concerns with state leaders and Walz in a letter about their state’s fiscal policies, saying they have impacted their cities and residents, noting a disappearing $18 billion surplus and a projected $2.9 billion to $3 billion deficit for the 2028-29 biennium. Former federal prosecutor Joe Teirab, who briefly worked on the Feeding Our Future aspect of the fraud investigation, recently told Fox News Digital the fraud scheme was notable not only for its size, but for how easy it was to carry out. “Honestly how easy this fraud was to do,” Teirab said. “These fraudsters were just saying that they were spending all this money on feeding kids… and they were just making up these PDFs, putting false names into Excel sheets.” Teirab said oversight failures within the Minnesota Department of Education and other agencies played a significant role. He argued that officials had incentives to avoid scrutiny, citing political sensitivities surrounding Minnesota’s Somali community. “There were huge incentives to just turn the other way,” Teirab said. “There’s a sense of, ‘If we say something, are they going to call us racist?’ And that’s exactly what happened.” Fox News Digital’s Nikolas Lanum and Louis Casiano contributed to this report
Rand Paul’s ‘Festivus Report’ calls out cocaine dogs, COVID influencers and a mountain of debt
Congress’ top fiscal hawk is back with his yearly government waste report card, this time uncovering over $1.6 trillion in spending on cocaine experiments on dogs, COVID-19 vaccine influencer campaigns and staggering yearly debt payments. Sen. Rand Paul, R-Ky., unveiled his 11th annual “Festivus Report” on Tuesday, detailing the wonky ways that the federal government dumps taxpayer dollars into pet projects. Paul has long been against Congress’ spending habits, routinely voting against appropriations bills and spending packages for not trying to tackle the nation’s growing debt problem. His report highlights that even with several lawmakers pounding their chests on Washington’s spending problem, Congress can’t help but spend more. DEMOCRATS’ LAST-MINUTE MOVE TO BLOCK GOP FUNDING PLAN SENDS LAWMAKERS HOME EARLY “No matter how much taxpayer money Washington burns through, politicians can’t help but demand more,” Paul said. “Fiscal responsibility may not be the most crowded road, but it’s one I’ve walked year after year — and this holiday season will be no different. So, before we get to the Feats of Strength, it’s time for my Airing of (Spending) Grievances.” He lauded moves taken by the Trump administration to slash government spending, like the nearly $9 billion rescissions package that slashed funding for public broadcasting and some foreign aid, Paul said that while the action was “a good start, it’s just a drop in the bucket.” Paul noted that in the last year, the federal debt has skyrocketed to nearly $40 trillion, up from roughly $36 trillion. RAND PAUL’S ‘FESTIVUS REPORT’ EXPOSES $900B IN GOVERNMENT SQUANDER “The Congressional Budget Office predicts we will add an average of $23.9 trillion in debt annually for the next decade. The U.S. government will add over $6.53 billion of debt every single day for the next ten years,” Paul said. “We borrow over $272 million every hour, we borrow $4.54 million every minute, and we borrow over $75,000 every second.” “This year, I’m spotlighting a jaw-dropping amount of government waste — the kind that makes you wonder if anyone in Washington has ever heard the word ‘priorities,’” he continued. “A grand total of $1,639,135,969,608, which includes $1.22 trillion in interest payments on the debt.” And several programs highlighted in the report that funneled taxpayer dollars to celebrities, drug experiments, diversity, equity and inclusion programs and several other obscure projects contributed to that staggering figure. KENNEDY URGES GOP TO RESTART SPENDING BATTLE AMID SOARING COST OF LIVING, WARNS AGAINST WASTING MAJORITY Among the highlights are over $40 million to social media influencers to promote getting the COVID-19 vaccine to racial and ethnic minority groups, over $5 million to dose dogs with cocaine, over $1 million to teach “teenage ferrets to binge-drink alcohol,” over $14 million to teach monkeys to play a “Price is Right”-inspired game and roughly $13 million to continue experiments on beagles. There’s also the over $7 billion previously allocated by Congress to build electric vehicle charging stations nationwide — only 68 have been built so far, he noted — and schools receiving nearly $200 billion in COVID-19 relief funds that has been spent on “rooms at Caesars Palace, renting out MLB stadiums, and ice cream trucks.” The report highlighted several other programs, including over $1 million to hire celebrity influencers for anti-drug campaigns targeting “Latinx” communities, nearly $5 million total for studies looking at the effect of screen time on toddlers and mobile-phone obesity intervention for toddlers, and over $2 million for researchers to take saliva swabs at electronic dance music festivals in New York City.