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HHS probes Minnesota’s use of billions in federal social service funds amid fraud concerns: report

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HHS probes Minnesota’s use of billions in federal social service funds amid fraud concerns: report

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The Department of Health and Human Services (HHS) has launched a review into how Minnesota used billions of dollars in federal social service funding, requesting detailed records from Gov. Tim Walz’s administration and other state entities after reports raised questions about whether portions of the money were misused, according to letters first obtained by the New York Post.

The letters were sent Monday by Alex Adams, assistant secretary for the Administration for Children and Families, to Walz, Minneapolis Mayor Jacob Frey and a nonprofit involved in administering Head Start programs, the Post reported.

According to the Post, Adams said HHS is attempting to determine whether federal safety-net funds were diverted or mismanaged and whether such misuse might have “been used to fuel illegal and mass migration” into Minnesota.

Adams told the outlet the review is focused on “accountability for American taxpayers” and on ensuring federal benefit programs were not compromised.

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LABOR SECRETARY ANNOUNCES ‘STRIKE TEAM’ GOING TO MINNESOTA TO INVESTIGATE RAMPANT FRAUD

Minnesota Gov. Tim Walz has said, “Minnesota is a prosperous state, a well-run state.” (AP Photo/Meg Kinnard)

The Post reported that Minnesota received more than $8.6 billion in ACF funding between fiscal years 2019 and 2025 through more than 1,000 federal grants. In fiscal year 2025 alone, the state received over $690 million for safety-net programs under President Biden, according to federal spending records reviewed by the Post.

In the letters, Adams requested what the Post described as a “comprehensive list” of all state entities that received ACF funding during that period, along with detailed administrative data. The information sought includes recipient names, addresses, dates of birth and, where applicable, Social Security numbers and immigration A-numbers, the Post reported.

Adams told the Post that HHS has “legitimate reason to think that they’ve been using taxpayer dollars incorrectly,” citing recent fraud investigations and allegations involving Minnesota’s Department of Human Services. According to the Post, the letters referenced public statements from hundreds of DHS employees alleging warnings of fraud were disregarded and whistleblowers faced retaliation.

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TRUMP CABINET OFFICIAL CALLS ON WALZ TO RESIGN OVER MASSIVE FRAUD SCANDAL IN SCATHING LETTER: ‘SHAME ON YOU’

Minneapolis Mayor Jacob Frey speaks during a press conference at City Hall following a mass shooting at Annunciation Catholic School on Aug. 28, 2025 in Minneapolis.  (Stephen Maturen/Getty Images)

The review comes amid heightened scrutiny of Minnesota’s handling of federal funds following multiple high-profile fraud cases. Federal prosecutors have charged dozens of individuals in connection with the Feeding Our Future scheme, in which more than $250 million intended for child nutrition programs was diverted for luxury purchases and real estate. Many of those charged had ties to nonprofits serving Minnesota’s Somali community.

The Post also cited Pew Research Center data showing Minnesota’s unauthorized migrant population increased by roughly 40,000 people between 2019 and 2023, reaching an estimated 130,000 residents, or about 2% of the state’s population.

Men take part in a weekly Friday Jum’ah prayer session at Abubakar As-Saddique Islamic Center amid a reported ongoing federal immigration operation targeting the Somali community in Minneapolis, Minnesota, U.S. Dec. 5, 2025.   (Tim Evans/Reuters)

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According to the Post, the ACF review includes several major federal programs, including the Community Services Block Grant, Social Services Block Grant, Low-Income Home Energy Assistance Program, Title IV-E Foster Care, Refugee Cash and Medical Assistance, the Child Care and Development Fund, and Parents in Community Action, a Head Start grantee.

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“The Trump Administration has made clear its commitment to rooting out fraud, protecting taxpayer dollars, and ensuring program integrity across all federal benefit programs,” Adams wrote in the letters, according to the Post. “This information is necessary for ACF to conduct a thorough review of program operations and to assess the extent of any irregularities that may have occurred.”

Fox News Digital reached out to Gov. Walz, Mayor Jacob Frey and HHS for comment but did not receive an immediate response.

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Federal judge blocks Trump from cutting childcare funds to Democratic states over fraud concerns

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Federal judge blocks Trump from cutting childcare funds to Democratic states over fraud concerns

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A federal judge Friday temporarily blocked the Trump administration from stopping subsidies on childcare programs in five states, including Minnesota, amid allegations of fraud.

U.S. District Judge Arun Subramanian, a Biden appointee, didn’t rule on the legality of the funding freeze, but said the states had met the legal threshold to maintain the “status quo” on funding for at least two weeks while arguments continue.

On Tuesday, the U.S. Department of Health and Human Services (HHS) said it would withhold funds for programs in five Democratic states over fraud concerns.

The programs include the Child Care and Development Fund, the Temporary Assistance for Needy Families program, and the Social Services Block Grant, all of which help needy families.

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USDA IMMEDIATELY SUSPENDS ALL FEDERAL FUNDING TO MINNESOTA AMID FRAUD INVESTIGATION 

On Tuesday, the U.S. Department of Health and Human Services said it would withhold funds for programs in five Democratic states over fraud concerns. (AP Photo/Jose Luis Magana, File)

“Families who rely on childcare and family assistance programs deserve confidence that these resources are used lawfully and for their intended purpose,” HHS Deputy Secretary Jim O’Neill said in a statement on Tuesday.

The states, which include California, Colorado, Illinois, Minnesota and New York, argued in court filings that the federal government didn’t have the legal right to end the funds and that the new policy is creating “operational chaos” in the states.

U.S. District Judge Arun Subramanian at his nomination hearing in 2022.  (Tom Williams/CQ-Roll Call, Inc via Getty Images)

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In total, the states said they receive more than $10 billion in federal funding for the programs. 

HHS said it had “reason to believe” that the programs were offering funds to people in the country illegally.

‘TIP OF THE ICEBERG’: SENATE REPUBLICANS PRESS GOV WALZ OVER MINNESOTA FRAUD SCANDAL

The table above shows the five states and their social safety net funding for various programs which are being withheld by the Trump administration over allegations of fraud.  (AP Digital Embed)

New York Attorney General Letitia James, who is leading the lawsuit, called the ruling a “critical victory for families whose lives have been upended by this administration’s cruelty.”

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New York Attorney General Letitia James, who is leading the lawsuit, called the ruling a “critical victory for families whose lives have been upended by this administration’s cruelty.” (Win McNamee/Getty Images)

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Fox News Digital has reached out to HHS for comment.

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Washington National Opera is leaving the Kennedy Center in wake of Trump upset

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Washington National Opera is leaving the Kennedy Center in wake of Trump upset

In what might be the most decisive critique yet of President Trump’s remake of the Kennedy Center, the Washington National Opera’s board approved a resolution on Friday to leave the venue it has occupied since 1971.

“Today, the Washington National Opera announced its decision to seek an amicable early termination of its affiliation agreement with the Kennedy Center and resume operations as a fully independent nonprofit entity,” the company said in a statement to the Associated Press.

Roma Daravi, Kennedy Center’s vice president of public relations, described the relationship with Washington National Opera as “financially challenging.”

“After careful consideration, we have made the difficult decision to part ways with the WNO due to a financially challenging relationship,” Daravi said in a statement. “We believe this represents the best path forward for both organizations and enables us to make responsible choices that support the financial stability and long-term future of the Trump Kennedy Center.”

Kennedy Center President Ambassador Richard Grenell tweeted that the call was made by the Kennedy Center, writing that its leadership had “approached the Opera leadership last year with this idea and they began to be open to it.”

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“Having an exclusive relationship has been extremely expensive and limiting in choice and variety,” Grenell wrote. “We have spent millions of dollars to support the Washington Opera’s exclusivity and yet they were still millions of dollars in the hole – and getting worse.”

WNO’s decision to vacate the Kennedy Center’s 2,364-seat Opera House comes amid a wave of artist cancellations that came after the venue’s board voted to rename the center the Donald J. Trump and the John F. Kennedy Memorial Center for the Performing Arts. New signage featuring Trump’s name went up on the building’s exterior just days after the vote while debate raged over whether an official name change could be made without congressional approval.

That same day, Rep. Joyce Beatty (D-Ohio) — an ex officio member of the board — wrote on social media that the vote was not unanimous and that she and others who might have voiced their dissent were muted on the call.

Grenell countered that ex officio members don’t get a vote.

Cancellations soon began to mount — as did Kennedy Center‘s rebukes against the artists who chose not to appear. Jazz drummer Chuck Redd pulled out of his annual Christmas Eve concert; jazz supergroup the Cookers nixed New Year’s Eve shows; New York-based Doug Varone and Dancers dropped out of April performances; and Grammy Award-winning banjo player Béla Fleck wrote on social media that he would no longer play at the venue in February.

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WNO’s departure, however, represents a new level of artist defection. The company’s name is synonymous with the Kennedy Center and it has served as an artistic center of gravity for the complex since the building first opened.

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AOC accuses Vance of believing ‘American people should be assassinated in the street’

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AOC accuses Vance of believing ‘American people should be assassinated in the street’

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Democratic Rep. Alexandria Ocasio-Cortez is leveling a stunning accusation at Vice President JD Vance amid the national furor over this week’s fatal shooting in Minnesota involving an ICE agent.

“I understand that Vice President Vance believes that shooting a young mother of three in the face three times is an acceptable America that he wants to live in, and I do not,” the four-term federal lawmaker from New York and progressive champion argued as she answered questions on Friday on Capitol Hill from Fox News and other news organizations.

Ocasio-Cortez spoke in the wake of Wednesday’s shooting death of 37-year-old Renee Nicole Good after she confronted ICE agents from inside her car in Minneapolis.

RENEE NICOLE GOOD PART OF ‘ICE WATCH’ GROUP, DHS SOURCES SAY

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Members of law enforcement work the scene following a suspected shooting by an ICE agent during federal operations on January 7, 2026, in Minneapolis, Minnesota. (Stephen Maturen/Getty Images)

Video of the incident instantly went viral, and while Democrats have heavily criticized the shooting, the Trump administration is vocally defending the actions of the ICE agent.

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Vance, at a White House briefing on Thursday, charged that “this was an attack on federal law enforcement. This was an attack on law and order.”

“That woman was there to interfere with a legitimate law enforcement operation,” the vice president added. “The president stands with ICE, I stand with ICE, we stand with all of our law enforcement officers.”

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And Vance claimed Good was “brainwashed” and suggested she was connected to a “broader, left-wing network.”

Federal sources told Fox News on Friday that Good, who was a mother of three, worked as a Minneapolis-based immigration activist serving as a member of “ICE Watch.”

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Ocasio-Cortez, in responding to Vance’s comments, said, “That is a fundamental difference between Vice President Vance and I. I do not believe that the American people should be assassinated in the street.”

But a spokesperson for the vice president, responding to Ocasio-Cortez’s accusation, told Fox News Digital, “On National Law Enforcement Appreciation Day, AOC made it clear she thinks that radical leftists should be able to mow down ICE officials in broad daylight. She should be ashamed of herself. The Vice President stands with ICE and the brave men and women of law enforcement, and so do the American people.”

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