Republican senators hit border, touting tougher security and tax cuts, in 2026 kickoff
Aiming to not only hold but expand their 53-47 majority in November’s midterm elections, top Senate Republicans are showcasing the plummeting rates of border crossings during a stop Friday at the nation’s southern border with Mexico. And the group, led by Senate Majority Leader John Thune, is also highlighting how President Donald Trump and Republican lawmakers are “putting more money in Americans’ pockets.” The stop at the border, hosted by One Nation, a nonprofit outside group closely aligned with Thune, is seen as an unofficial kickoff by Senate Republicans ahead of the midterms to tout the sweeping “One Big, Beautiful Bill Act,” Trump’s signature domestic achievement last year that was passed nearly entirely along party lines in the GOP controlled Congress. At the event at the border, which was a regular stop for Republicans amid the surge in border crossings during then-President Joe Biden’s administration, the GOP senators are teaming up with members of the National Border Patrol Council. And they are highlighting how the passage of the domestic policy measure “secured transformational border security funding,” according to One Nation. THUNE PREVIEWS SENATE REPUBLICANS’ MIDTERM MESSAGE “This is a remarkable, remarkable difference in just a year,” Thune said at the event. “It’s been an incredible year of progress when it comes to the southern border and the American people are experiencing the benefit of that in the form of having safer streets and safer communities and safer neighborhoods.” But with Democrats enjoying decisive victories and overperformances in the 2025 elections and in a slew of special elections and other ballot box showdowns last year, which were fueled by their laser focus on affordability amid persistent inflation, the Republican senators are also using Friday’s trip to spotlight the tax cut and energy policy provisions in the bill, which they rebranded as the “Working Families Tax Cut.” “The Working Families Tax Cut will make buying groceries more affordable for working Americans this year,” the Senate Republicans touted on social media on the eve of the border stop. “Every Democrat voted against it.” DOUBLING DOWN: TOP HOUSE DEMOCRAT SAYS FOCUS ON HIGH PRICES ‘ABSOLUTELY GOING TO CONTINUE’ And they also highlighted that “Senate Republicans have worked closely with President Trump to lower energy prices and make life more affordable — and the results speak for themselves.” Thune, at the border, pointed to the tax cut provisions in the GOP measure, including no tax on tips and overtime and reduced rates for seniors on Social Security, along with “the jobs that are going to be created by the pro-growth policies that we put in place….are going to lead us to a place where the American people are seeing their incomes go up.” But Democrats see the cost of living as their winning issue heading into the midterms. “If the Republican agenda actually made life more affordable for working Americans, then they wouldn’t be desperately flailing as families struggle to afford groceries, health care, and housing,” Lauren French, communications director at Senate Majority PAC, the top Senate Democrat-aligned outside group, told Fox News Digital. “Instead of focusing on working people, Trump and Senate Republicans are focused on bringing chaos and instability into our communities.” Joining Thune, the longtime senator from South Dakota, at the border is Sen. John Barrasso of Wyoming, number two in Senate Republican leadership. There are also Sen. John Cornyn of Texas, who faces a bruising GOP primary showdown in March against challengers Texas Attorney General Ken Paxton and Rep. Wesley Hunt; and Republican Sens. Jon Husted of Ohio and Ashley Moody of Florida, who were appointed last year and will face voters this November. HEALTHCARE, ECONOMY AND THE ‘ONE BIG, BEAUTIFUL BILL’: WELCOME TO THE MIDTERMS GOP Sens. Pete Ricketts of Nebraska and Mike Rounds of South Dakota, who are up for re-election this year, are also on the trip, as are former Rep. Mike Rogers and former Republican National Committee chair Mike Whatley, the GOP Senate candidates in battlegrounds Michigan and North Carolina who are backed by Thune and the National Republican Senatorial Committee. “We’re seeing signs already that the economy is starting to tick up and is starting to take hold as the President’s policies are getting in place,” Whatley argued last month in a Fox News Digital interview. “We need to make sure that we have the trade policies, the tax policies, the regulatory policies from this administration that are going to help our small businesses, our manufacturers and our farmers across North Carolina.” But Democrats are energized as the midterm year begins, as they continue to keep their focus on the issue of affordability. “Donald Trump has lost the economy, is losing his mind, and is going to lose the midterms,” Democratic National Committee chair Ken Martin claimed in a recent statement.
‘Tip of the iceberg’: Senate Republicans press Gov Walz over Minnesota fraud scandal
FIRST ON FOX: The entire Senate GOP demanded that Minnesota Gov. Tim Walz provide a paper trail on the state’s role in the Minnesota fraud scandal, cranking up the scrutiny in Washington, D.C., in the process. In a letter led by Sen. Bill Cassidy, R-La., Republicans reiterated that Congress controls the flow of taxpayer dollars that are alleged to be used in the unfurling scandal, where federal prosecutors estimate that up to $9 billion was stolen through a network of fraudulent fronts posing as daycare centers, food programs and health clinics. “The state’s apparent negligent management of federal funds raises significant concerns about the adequacy of the state’s oversight, verification, and compliance systems for safeguarding taxpayer dollars intended to support vulnerable children and working families,” they wrote. “Unfortunately, these latest reports appear to reflect only the tip of the iceberg.” SENATE REPUBLICANS PUSH TO DEPORT, DENATURALIZE FRAUDSTERS AMID MINNESOTA SCANDAL They support the Department of Health and Human Services’ (HHS) move earlier this week to freeze funding to several childcare grant programs in the state, including the Child Care and Development Fund, Temporary Assistance for Needy Families and Social Services Block Grant programs. Cassidy, who chairs the Senate’s Health, Education, Labor and Pensions Committee, called on Walz to provide receipts on several issues and warned that failure to do so could lead to even more streams of federal money flowing to Minnesota drying up. SCATHING AUDIT REVEALS MORE FRAUD CONCERNS INSIDE TOP MINNESOTA AGENCY WITH FABRICATED DOCUMENTS, ‘MISCONDUCT’ In the letter, backed by Senate Majority Leader John Thune, R-S.D., and Senate Majority Whip John Barrasso, R-Wyo., lawmakers demanded that Walz clarify how the state was complying with federally directed audits and what verification requirements the state has “adopted or plans to implement in the near term to support proof of legitimate use of federal child care payments.” They also called for a detailed outline of several issues, like how often the state conducted on-site monitoring, inspections or investigative visits to childcare facilities that received federal dollars, and specifically wanted examples of any information uncovered on fake children, false attendance records, over-billing, ineligible enrollments, and shell or fake business structures. SCATHING AUDIT REVEALS MORE FRAUD CONCERNS INSIDE TOP MINNESOTA AGENCY WITH FABRICATED DOCUMENTS, ‘MISCONDUCT’ Lawmakers also demanded to know how many investigations the state has conducted into the matter since 2018, any oversight actions the state has taken and why the Walz administration has, so far, not complied with a slate of recommendations from a DHS Office of Inspector General report that included action to recover overpayments, strengthen attendance monitoring at childcare facilities and implement real-time electronic attendance reporting. Cassidy and Senate Republicans gave Walz until Jan. 22 to comply with their slate of requests. “The Constitution grants Congress the power of the purse,” they wrote. “And the United States Senate is exercising its duty to ensure proper stewardship of federal taxpayer dollars for child care programs, and we take this responsibility very seriously.”
Democratic socialist Mamdani ally mounts bid for US House of Representatives
New York state Assemblymember Claire Valdez, an ally of New York City Mayor Zohran Mamdani, has mounted a bid for the U.S. House of Representatives. “I’m a union organizer, Assemblymember, and democratic socialist running for Congress in NY-07. I came to politics through low-wage jobs and the labor movement. That’s the perspective I’ll bring to Washington to take on oligarchy, fascism, and war — and win for working people,” she wrote in a post on X. Valdez has called for the abolition of U.S. Immigration and Customs Enforcement (ICE). ‘THE PEOPLE’S QUR’AN’: MAMDANI ANNOUNCES NYC QURAN EXHIBIT WITH BOOK BELONGING TO REVOLUTIONARY ACTIVIST “When we called this administration fascist last year, we were called hyperbolic. We were called hysterical,” she said in recent public remarks. “We must abolish ICE at the federal level,” she asserted, calling it a “militarized terrorist organization that is destroying our country.” Her campaign website makes clear that she is an advocate for “Medicare for All.” NYC MAYOR ZOHRAN MAMDANI SET TO EARN NEARLY $260K, ABOUT 80% MORE THAN HIS PRIOR SALARY “Claire will fight to pass Medicare for All, paid for by taxing billionaires and corporations that have rigged the system, and deliver universal health care for every New Yorker,” the site notes. “Housing is a human right — but Congress has chosen to side with landlords and speculators instead of working people. Claire will fight to guarantee safe, affordable housing for all, because housing is not a commodity. It’s a necessity,” the site also states. NOEM REPORTS MAMDANI-DHS TALKS HAVE ‘NOT BEEN PRODUCTIVE,’ SAYS NYC MAYOR ‘CHOSE TO STAND WITH ILLEGALS’ CLICK HERE TO GET THE FOX NEWS APP Valdez will compete in a Democratic primary in June for the seat being vacated by Rep. Nydia Velazquez, D-N.Y. Velazquez, who currently represents the Empire State’s 7th Congressional District, is not seeking re-election in 2026. Brooklyn Borough President Antonio Reynoso already announced his 2026 primary bid for the House seat last year.
GOP senator blocks Trump DHS nominees until Noem testifies before Senate
A Senate Republican intends to block President Donald Trump’s Department of Homeland Security (DHS) nominees until Secretary Kristi Noem appears on Capitol Hill. Sen. Thom Tillis, R-N.C., told reporters that he was putting holds on future nominees for the agency because Noem had not yet committed to appearing before the Senate Judiciary Committee. “My chairman has made two requests in this Congress to have the Homeland Security Secretary [Kristi Noem] come before the committee, and they have yet to confirm that they’re coming,” Tillis said. “That is unacceptable, and so I am putting a hold on anything related to Homeland Security measures until we get an agreement and a scheduled time to come for committee at the least.” KRISTI NOEM FACES FIRST MAJOR HOMELAND SECURITY GRILLING AS LAWMAKERS PRESS HER ON TERROR THREATS But he made clear that the blockade was not in response to the death of Renee Nicole Goode, whose fatal shooting by an Immigration and Customs Enforcement (ICE) agent on Wednesday sparked protests. “The only thing that moves through Homeland Security where I will consider an exception would be having anything to do with the disaster response,” he said. His holds come after Grassley sent two separate invites for Noem to appear before the committee, one in June and the other in September. 5 GOP SENATORS JOIN DEMOCRATS TO STOP TRUMP FROM POLICING VENEZUELA It also comes on the heels of Senate Republicans touting their blistering pace to confirm several hundred of Trump’s picks. Still, the move to block Trump’s DHS picks is another instance of Tillis pushing back against the administration. Tillis announced last year that he would not support Trump’s crowning legislative achievement of his second term, the “big, beautiful bill,” over issues with cuts to Medicaid. He also announced that he would not seek re-election shortly after and has since on occasion broken ranks with Republicans to push back on the president’s agenda. SENATE REPUBLICANS PUSH TO DEPORT, DENATURALIZE FRAUDSTERS AMID MINNESOTA SCANDAL Most recently, he pushed back on recent rumblings from the White House and administration officials that military force was not off the table to advance Trump’s desire to control Greenland. “I’m sick of stupid,” Tillis said on the Senate floor earlier this week. “I want good advice for this president, because I want this president to have a good legacy. And this nonsense on what’s going on with Greenland is a distraction from the good work he’s doing, and the amateurs who said it was a good idea should lose their jobs.” Still, Tillis voted against a related resolution on Thursday to curtail Trump’s future usage of the military in Venezuela, which ultimately advanced with the aid of five Senate Republicans. DHS did not immediately respond to Fox News Digital’s request for comment.
Inside the sea war to contain ‘dark fleet’ vessels — and what the US seizure signals to Russia
The U.S. seizure of the tanker formerly known as Bella I marks a rare escalation in sanctions enforcement against Russia’s so-called “dark fleet,” but experts say the move is unlikely to trigger a broader confrontation with Moscow, at least in the near term. Analysts largely agree that the interdiction — one of the most direct U.S. actions against a vessel Russia claims was operating under its flag — comes at a moment when the Kremlin has limited appetite for escalation outside Europe and is focused primarily on its war against neighboring Ukraine. “This is unique,” said Brent Sadler, senior research fellow at the Washington conservative Heritage Foundation think tank. The U.S. rarely boards foreign-flagged vessels on the high seas unless the ship’s nationality is in doubt, which he said was the case here due to rapid reflagging and a pattern of sanctions violations. TREASURY TARGETS OIL TRADERS, TANKERS ACCUSED OF HELPING MADURO EVADE U.S. SANCTIONS Peter Rough, a senior fellow and director of the Center on Europe and Eurasia at the Hudson Institute think tank, said that the seizure of the tanker reinforces the message that the U.S. is aiming to “call the shots in its own backyard.” Meanwhile, he said that Russia is bogged down fighting its war against Ukraine, meaning it will be challenging for it to engage in a significant way in Latin America. Likewise, Russia is also attempting to curry favor with the Trump administration for a favorable outcome in a peace deal ending the conflict with Ukraine, he said. “The Donroe Doctrine,” as President Donald Trump has called it, fashions the 1823 Monroe Doctrine warning against European expansion into Latin America after himself. The empty vessel was seized in international waters during an operation overseen by U.S. European Command. The Wall Street Journal reported that Russia dispatched a submarine to escort the tanker after the U.S. attempted to seize it off Venezuela, heightening the risk of a naval standoff between two nuclear-armed states. ‘GHOST SHIPS’ FERRYING ILLICIT OIL HAVE SAILED INTO TRUMP’S CROSSHAIRS Russia has operated a so-called “shadow fleet” of oil tankers for years to evade sanctions imposed after its 2022 invasion of Ukraine. Wednesday’s seizure marks one of the most direct U.S. enforcement actions to date against a vessel tied to that network. “There’s really not a whole lot of cards the Russians have to play at this point,” Sadler said, anticipating a muted response. US AND UKRAINE TARGET 1,000-VESSEL ‘DARK FLEET’ SMUGGLING SANCTIONED OIL WORLDWIDE Rough also noted that similar actions like the one on Wednesday have not triggered major escalation previously. In October, French authorities boarded and detained a Russia-linked tanker suspected of being part of the shadow fleet off the coast of France without sparking a new crisis. In that instance, the tanker was not a Russian-flagged vessel. “The upshot is that in light of the administration’s determination to dictate terms on Venezuela-related issues like this and Putin’s desire to work with Trump on what matters most to the Kremlin — Ukraine — I’m inclined to say that Moscow’s response will consist mostly of protesting this action and lodging political and legal complaints,” Rough said in an email to Fox News Digital. “I don’t think it will lead to a full-blown political crisis in U.S.-Russian relations.” John Hardie, deputy director of the Russia program at the Foundation for Defense of Democracies, also predicted the seizure of the Bella I tanker wouldn’t dramatically impact relations between Washington and Moscow. “I suspect Moscow reacted the way it did because it worries about a precedent that could lead to U.S. interdiction of tankers moving Russian oil,” Hardie said. “That said, I don’t think the Bella incident alone will have significant impact on relations between the Trump administration and Moscow or the peace talks.” US COAST GUARD PURSUES THIRD ‘DARK FLEET’ OIL TANKER AS TRUMP TARGETS VENEZUELAN SANCTIONS EVASION NETWORK Russia has accused U.S. naval forces of illegally boarding the vessel — which had been reflagged as the Merinera under temporary Russian authorization Dec. 24 — arguing the action violated international maritime law. U.S. officials have not publicly detailed the legal justification for the seizure. While Moscow’s response has so far been limited to diplomatic and legal objections, the incident has drawn attention because of how unusual the operation was. Mark Cancian, a senior adviser with the Center for Strategic & International Studies’ defense and security department, said that there are hundreds of sanctioned oil ships in the sea — with at least 100 of them belonging to Russia. If the U.S. started targeting more tankers, that would have a “huge” impact on countries like Russia and Iran, he said. “The one tanker will be an annoyance to Russia, and they’ll complain,” Cancian told Fox News Digital Wednesday. “I think the bigger issue is whether we or other countries, start going after other tankers with sanctioned oil.”
Watchdog exposes taxpayer-funded teacher program for banning White applicants: ‘Likely illegal’
FIRST ON FOX: A leading education watchdog group released a report this week alleging that a state-funded teacher preparation partnership in Minnesota explicitly limits eligibility based on race, possibly in violation of federal law. According to a report released by Defending Education, the Minnesota Educators Partnership (MEP), a collaboration between MSU Mankato and several southern Minnesota school districts, operates multiple teacher pipeline programs that are restricted to Black, Indigenous and People of Color (BIPOC) applicants despite being funded with taxpayer dollars through the Minnesota Department of Education. The partnership in question, according to the report, received $1.5 million in state grants in 2023 as part of Minnesota’s “Grow Your Own” (GYO) program, which was designed to recruit and train teachers to work throughout schools in the state with the goal of diversifying the teaching workforce. The report focuses on two MEP initiatives known as “Teachers of Tomorrow,” which targets high school students, and “Teaching Fellows,” an adult pathway designed to help participants earn teaching licenses. GOT A SCOOP ON CAMPUS? SEND US A TIP HERE Program documents obtained by Defending Education for the Teaching Fellows initiative state that it is “open to applicants who are Black, Indigenous, or People of Color (BIPOC)” and require participants to be “of color or American Indian.” Some application materials require applicants to affirmatively check a box stating they are BIPOC in order to apply. In addition to eligibility requirements, the report also highlights race-based rules governing how the partnership is run. According to program documentation, all project decisions for the Teaching Fellows initiative are made by a council that “must be majority individuals of color.” The Defending Education report argues that state data backs up their concerns and references a 2024 Minnesota Department of Education report showing that in several participating districts, 100% of MEP participants identified as “People of Color or Indigenous.” WATCHDOG URGES DOJ PROBE OF TOP RESEARCH UNIVERSITY OVER ALLEGED ILLEGAL DEI PRACTICES: ‘DEFIES COMMON SENSE’ Erika Sanzi, senior director of Communications at Defending Education, told Fox News Digital that the actions may violate Title VI of the Civil Rights Act, which prohibits discrimination on the basis of race in programs receiving federal funding. “Minnesota’s race-based programming for aspiring teachers is likely illegal, and I wouldn’t be surprised if federal authorities decide to take a closer look,” Sanzi told Fox News Digital. “The goal of diversifying the teacher pipeline isn’t the problem; discriminating on the basis of race is the problem.” In a statement to Fox News Digital, an MSU-Mankato spokesperson told Fox News Digital that “access to education for all students is among Minnesota State University, Mankato’s core values as an institution, and we are proud of our institutional commitment to an inclusive environment where all are welcome.” “Minnesota State University, Mankato follows all grant criteria established by the Minnesota Department of Education’s Grow Your Own program and Minnesota state law. Minnesota State Mankato’s website provides more information about the Minnesota Educators Partnership, Teachers of Tomorrow and more.” The report comes as the Trump administration has made efforts to crack down on diversity, equity, and inclusion (DEI) measures in schools across the country in the form of executive orders aiming to ensure federal funding isn’t allocated to jurisdictions or institutions that focus on race-based curriculum or hiring practices.
President Trump says there won’t be a ‘second Wave of Attacks’ against Venezuela due to their ‘cooperation’
President Donald Trump announced in an early Friday morning Truth Social post that he has “cancelled the previously expected second Wave of Attacks” against Venezuela in light of the “cooperation” between the foreign nation and the U.S. “Venezuela is releasing large numbers of political prisoners as a sign of ‘Seeking Peace.’ This is a very important and smart gesture. The U.S.A. and Venezuela are working well together, especially as it pertains to rebuilding, in a much bigger, better, and more modern form, their oil and gas infrastructure. Because of this cooperation, I have cancelled the previously expected second Wave of Attacks, which looks like it will not be needed, however, all ships will stay in place for safety and security purposes,” Trump said in the post. He noted that he will meet with “BIG OIL” figures at the White House on Friday. TRUMP DISCUSSES EXPANSION OF DRUG CARTEL CRACKDOWN, ISSUES GRIM WARNING TO IRAN “At least 100 Billion Dollars will be invested by BIG OIL, all of whom I will be meeting with today at The White House. Thank you for your attention to this matter!” he declared in the post. The president’s comments come after he unilaterally ordered an attack against Venezuela last week in which U.S. forces successfully captured Nicolás Maduro. VENEZUELA TEETERS AS GUERRILLA GROUPS, CARTELS EXPLOIT MADURO POWER VACUUM Trump noted in a Wednesday Truth Social post, “I have just been informed that Venezuela is going to be purchasing ONLY American Made Products, with the money they receive from our new Oil Deal. These purchases will include, among other things, American Agricultural Products, and American Made Medicines, Medical Devices, and Equipment to improve Venezuela’s Electric Grid and Energy Facilities.” 5 GOP SENATORS JOIN DEMOCRATS TO STOP TRUMP FROM POLICING VENEZUELA CLICK HERE TO GET THE FOX NEWS APP “In other words, Venezuela is committing to doing business with the United States of America as their principal partner – A wise choice, and a very good thing for the people of Venezuela, and the United States. Thank you for your attention to this matter!” he added.
Trump plans to meet with Venezuela opposition leader Maria Corina Machado next week
President Donald Trump said on Thursday that he plans to meet with Venezuelan opposition leader Maria Corina Machado in Washington next week. During an appearance on Fox News’ “Hannity,” Trump was asked if he intends to meet with Machado after the U.S. struck Venezuela and captured its president, Nicolás Maduro. “Well, I understand she’s coming in next week sometime, and I look forward to saying hello to her,” Trump said. This will be Trump’s first meeting with Machado, who the U.S. president stated “doesn’t have the support within or the respect within the country” to lead. According to reports, Trump’s refusal to support Machado was linked to her accepting the 2025 Nobel Peace Prize, which Trump believed he deserved. But Trump later told NBC News that while he believed Machado should not have won the award, her acceptance of the prize had “nothing to do with my decision” about the prospect of her leading Venezuela.
FLASHBACK: Jill Biden visited Minnesota to tout billions in childcare spending during husband’s administration
Former first lady Jill Biden went to Minnesota in 2022 to highlight the billions of dollars in investments for childcare that were part of Democrats’ American Rescue Plan Act, where she stood next to Minnesota Gov. Tim Walz and praised him for his leadership helping families. “We helped states like Minnesota safely keep open childcare centers and family childcare providers and boost pay for their workers,” Biden said during a February 2022 visit to the University of Minnesota’s Child Development Laboratory School alongside Walz and then-Health and Human Services Secretary Xavier Becerra. “We supported high quality providers that enrich children’s lives, and we helped make them more affordable.” BESSENT SAYS MINNESOTA FRAUD RECOVERY COULD HELP FUND TRUMP’S $1.5T DEFENSE PLAN The 2021 American Rescue Plan Act, a $1.9 trillion COVID-era relief package, allocated nearly $40 billion for childcare after it was passed without any Republican support. Roughly 4 years after the first lady went to Minnesota to tout the Democrat-led investments in childcare, Walz and his state are facing immense blowback for allegedly failing to adequately monitor fraud within the state’s Medicaid program and its childcare sector. According to a local Fox affiliate, daycare centers in Minnesota received roughly $500 million in federal funds in 2021. “Tim, you understand that childcare is not only critical to families, it’s critical to businesses and our economy,” the first lady said as she turned to Walz standing behind her as she addressed people at the school. “And Joe and I are so grateful for your leadership and for the friendship that you and Gewn … that we’ve had for so many years. And I’m excited to hear more today about what you’ve done here in Minnesota to help families recover from the uncertainties and the losses from the pandemic.” Earlier this week, a major state audit in Minnesota conducted by the nonpartisan Office of the Legislative Auditor found widespread failures and internal control problems in the Minnesota Department of Human Services’ Behavioral Health Administration (BHA) grant program, reaffirming concerns about massive fraud issues in the state. VANCE CALLS WALZ ‘A JOKE,’ CLAIMS MINNESOTA GOVERNOR ENABLED MASSIVE FRAUD The report, released Monday, found that between July 1, 2022, and Dec. 31, 2024, DHS dished out more than $425 million in grants to 830 organizations, the majority being nongovernmental, and did not show proper oversight in watching over those taxpayer funds, which in many cases were meant to help those with addiction and mental health issues. The audit found missing progress reports and discovered BHA could not show it had completed all required monitoring visits and had no documentation at all for some of them. The audit also found that when employees were surveyed, 73% of them said they did not receive the necessary training to properly administer and manage grants, with one employee saying, “Executive leadership has repetitively shown staff that they won’t take the staff’s concerns or questions seriously until something serious happens or it makes the news.” The scathing report comes as Minnesota’s government agencies and leaders face immense scrutiny amid a fraud scandal that prosecutors say could total as much as $9 billion and has already prompted Gov. Tim Walz to drop his re-election bid. Some reports have indicated a handful of Minnesota’s Democrat leaders allegedly took donations from some of those accused of committing fraud in Minnesota, while others have suggested Walz retaliated against whistleblowers who tried to sound the alarm about the fraud. Fox News Digital reached out to representatives for Jill and Joe Biden but did not receive a response in time for publication.
Blue state’s billionaire exodus about to get much worse in 2026, insider warns
As Google co-founder Larry Page and Oracle founder Larry Ellison become some of the latest high-profile Californians to flee, an insider is warning that the “mass migration” of billionaire business leaders out of the state is only going to speed up in 2026. Silicon Valley tech entrepreneur Allison Huynh told Fox News Digital two “rage bait” tax proposals she believes Democrats are using to get voters to the polls in November could be the final nail in the coffin for California. Huynh is a startup founder, investor and former fundraiser for former presidents Barack Obama and Joe Biden. According to Huynh, the two tax proposals, an annual wealth tax proposal and a 2026 Billionaire Tax Act, would cause a “mass migration,” starting with “not just the billionaires, but the people who are investing in new ideas, in new infrastructure, whether it’s AI, healthcare, tech, robotics.” EXTREME SPORTS STAR LASHES OUT AT NEWSOM FOR KILLING THE CALIFORNIA DREAM: ‘WHAT HAPPENED?’ Public filings reviewed by Fox News Digital from the California Secretary of State’s office show several business entities linked to the Google co-founder were moved out of the state in December, ahead of the Jan. 1, 2026 residency date tied to the proposed tax. Those filings indicate his family office, Koop LLC, and his influenza research fund, Flu Lab LLC, no longer list California, while a flying-car venture, One Aero, now lists its primary address in Florida. Ellison has taken steps that signal a potential pullback from California, though details of a reported $45 million off-market sale of his San Francisco home have not been independently confirmed by major outlets. The New York Post reported the sale and said it would mark the city’s largest real estate transaction of 2025. With these exits in mind, Huynh likened the proposed tax hikes to a restaurant about to go out of business. “Instead of lowering the price, they increase the price,” she said. “And then you go into the restaurant, and it’s like $50 for a bowl of really bad dumplings.” According to Huynh, the annual wealth tax would impose a one to 1.5% tax on anything over $50 million. “And that’s paper valuation,” she explained. “So, for example, if you have $1 million in liquid assets, that’s cash, and $49 million, say, in artwork or in a house that you inherited from your family. You would be responsible for the entire 50 million in terms of your cost basis for that 1%.” The second proposal, the 2026 Billionaire Tax Act, would impose a one-time 5% tax on any asset valued above $1 billion, including a business holding. “You could be a founder, you could be a tech star, and you could be worth a hundred billion dollars. But say you only have like $2 million in liquid assets because all that money is used to run your new AI company. Well, doesn’t matter. You’re going to be taxed entirely on that $100 billion. And, so, effectively, you owe the state of California one time, $5 billion.“ WASHINGTON POST CITES U-HAUL DATA IN CALIFORNIA EXODUS TO ‘PRO-GROWTH’ STATES, SAYS ‘DECLINE IS A CHOICE’ Though the impact of these proposals would be catastrophic, Huynh said she believes that California Democrats view them as “rage bait” to motivate voters to show up at ballot boxes during this year’s midterm elections. “It is the Democrats’ answer to MAGA,” she explained, saying it’s a type of “Eat the rich.” Though proposed in the California Assembly, the annual tax proposal is not on track to be added to the November ballot. Proponents of the billionaire tax, however, are gathering signatures for the proposal to be added to the ballot. According to Huynh, billionaires and business leaders are not waiting to see the final outcome. “So many people I know, including certain family members, have all of a sudden sold their house in two days in the state of California. And many of them went house shopping in Florida, in Texas and also in Puerto Rico,” she said. “These are founders, investors in robotics, in AI companies. They are controversial, but you have to admit they have created a lot of value — thousands and hundreds of thousands of jobs in California. CALIFORNIA LEGISLATION PUTS ECONOMIC PRESSURE ON BILLIONAIRES “We can’t sanction these billionaires to be in the California jurisdiction,” she said, exasperated. “So, why are we forcing bad legislation that will drive the vast majority of the investors in California businesses? And they will likely take their businesses with them, their multibillion-dollar businesses with them. We saw that with SpaceX. We saw that with Oracle. They’ll take it with them to Texas, to Tennessee, to Florida and all the thousands and thousands of jobs with it. And there’s nothing we can do, “They’re not going to want to be in California,” she said. “This is a very, very dangerous move.”