Washington, D.C. January 1, 2026 – In a fiery New Year’s address at what appeared to be a celebratory event marking his return to the presidency, Donald Trump claimed that Somali communities in Minnesota had stolen $18 billion in federal funds, vowing to “get to the bottom of it” as part of broader efforts to root out government scams. The remarks, captured in a video clip shared by the America PAC on X (formerly Twitter), come amid ongoing federal probes into fraud schemes in the state, though the figure cited by Trump significantly exceeds amounts reported in official investigations.
The event, featuring a backdrop reading “45th & 47th” – a nod to Trump’s terms as the 45th and now 47th President – saw Trump speaking alongside UFC President Dana White. In the 33-second clip, Trump stated, “Can you imagine they stole 18 billion dollars? That’s just what we’re learning about… It was a giant scam. We’re going to get to the bottom of all of it.” He also referenced similar issues in California, Illinois, and New York, framing the revelations as “good news” because his administration would recover the funds.
Trump’s comments align with recent actions by his administration, which announced on December 30, 2025, that it is freezing federal child care funds to Minnesota pending investigations into alleged fraud. The Department of Health and Human Services (HHS) cited a series of schemes involving child care centers, many reportedly run by Somali immigrants, as the reason for the halt. This move follows viral claims, including a video by a conservative YouTuber alleging up to $100 million in fraud by Somali residents in Minneapolis.
Federal prosecutors have described the scandals as “industrial-scale fraud,” with charges filed against individuals involved in a now-defunct housing stabilization program and child care operations. Additional verification measures, such as enhanced audits, will be required for centers suspected of wrongdoing. However, the $18 billion figure mentioned by Trump appears unsubstantiated in public records, which point to losses in the hundreds of millions rather than billions. Critics, including Minnesota officials, have accused the administration of exaggerating the scale to target immigrant communities.
In response to the funding freeze, congressional Republicans have summoned Minnesota Governor Tim Walz and Attorney General Keith Ellison to testify before a House committee on the matter. Walz’s office has been asked to provide an audit of the programs, amid accusations that state oversight failed to prevent the abuses.
The White House has also signaled it is exploring denaturalization for Somali Americans implicated in the fraud, escalating tensions in a state with one of the largest Somali populations in the U.S. Advocacy groups have condemned the rhetoric as inflammatory, arguing it unfairly stigmatizes an entire community based on the actions of a few. “This is about accountability, not ethnicity,” a Trump spokesperson said in a statement, emphasizing the administration’s focus on “America First” policies.
The video clip quickly garnered attention on social media, amassing over 18,000 views and sparking debates. Supporters praised Trump’s tough stance on waste, while detractors questioned the accuracy of his claims and the potential for discriminatory enforcement.
As investigations continue, the freeze on funds could impact thousands of families relying on child care subsidies in Minnesota. Trump concluded his remarks optimistically, promising a “great new year” as his team works to reclaim taxpayer dollars. The full context of the speech and any additional details from the event have not yet been released.
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