Karoline Leavitt warns 'people will be in handcuffs' as feds zero in on Minnesota fraud scandal

  • by:
  • Source: Fox News
  • 12/31/2025

White House press secretary Karoline Leavitt warned Wednesday that "people will be in handcuffs" as fallout grows from expansive fraud allegations under Minnesota Gov. Tim Walz’s watch.

"President Trump is not going to let Governor Walz off the hook," Leavitt told "Fox & Friends," echoing arguments that responsibility lies with the governor as the alleged fraud occurred under his administration.

Leavitt said the Trump administration has surged federal resources into Minnesota, with multiple agencies conducting investigations tied to the alleged fraud.Among them, Immigration and Customs Enforcement (ICE) is conducting door-to-door operations at alleged fraud sites, a key federal effort ICE Director Todd Lyons discussed Tuesday.

"This is a top priority for the administration," Leavitt reiterated.

"The Department of Justice, as we speak, is continuing to execute search warrants and subpoenas… The Department of Homeland Security is conducting door-to-door investigations on the ground at potential fraud sites, and they're also conducting continued deportations of illegal aliens in Minnesota's communities."

"We're also not afraid to use denaturalization," she continued. "That's a tool at the president and the Secretary of State's disposal, and it's one this administration has previously used before."

"Our entire administration is working around the clock to get to the bottom of it," Leavitt added.

Gov. Tim Walz, who has come under intense scrutiny since the fraud issue came to light, has publicly acknowledged the problem and pledged to tackle it, saying the situation "is on my watch" and that he is "accountable" for fixing it, even as his administration has questioned some federal estimates regarding the scale of the fraud.

Walz also issued a third-party audit of Medicaid billing through Minnesota's Department of Human Services and paused payments for some services while an audit is underway, according to FOX 9, an affiliate based in St. Paul.

Walz previously told the outlet in a statement, "We cannot effectively deliver programs and services if they don’t have the backing of the public’s trust. In order to restore that trust, we are pumping the brakes on 14 programs that were created to help the most disadvantaged among us, yet have become the target of criminal activity."

He added, "If you attempt to defraud our public programs and steal taxpayer dollars out from under the people who need them most – you will be stopped, and you will be held accountable." 

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