President Donald Trump went off on the “crooked” Democratic governors of California and Minnesota as his administration ramps up enforcement and investigations tied to alleged misuse of taxpayer dollars.
The president took aim at California Gov. Gavin Newsom and Minnesota Gov. Tim Walz in a post that framed both states as epicenters of misconduct.
“There is more FRAUD in California than there is in Minnesota, if that is even possible. When you add in Election Fraud, then they are tied for first. Two Crooked Governors, two Crooked States!” Trump wrote, singling out Newsom and Walz by name.
Trump’s criticism expanded to include Rep. Ilhan Omar, D-Minn., whom he accused of being emblematic of deeper problems tied to immigration and public corruption.
Donald Trump is a deranged, habitual liar whose relationship with reality ended years ago.
This is not complicated. He spends his days posting whatever garbage his shriveled little brain can cough up — and @FoxNews dutifully treats it like the Lord's scripture.
Meanwhile — in… https://t.co/3MnL0Qe0g7
— Governor Newsom Press Office (@GovPressOffice) December 31, 2025
“Much of the Minnesota Fraud, up to 90%, is caused by people that came into our Country, illegally, from Somalia,” Trump wrote, adding personal jabs against Omar that questioned her loyalty and background.
“Lowlifes like this can only be a liability to our Country’s greatness,” he went on. “Send them back from where they came, Somalia, perhaps the worst, and most corrupt, country on earth. MAKE AMERICA GREAT AGAIN!!!”
Newsom’s office responded rapidly, issuing a statement through the governor’s press account on X that described Trump as “a deranged, habitual liar whose relationship with reality ended years ago.”
The post wildly claimed that Newsom’s administration has “blocked over $125 BILLION in fraud, arrested criminal parasites leaching off of taxpayers, and protected taxpayers from the exact kind of scam artists Trump celebrates, excuses, and pardons.”
Despite that defense, criticism of California’s handling of taxpayer dollars has not been limited to Republicans.
Rep. Ro Khanna, who represents Golden State tech hub Silicon Valley, publicly challenged Newsom’s stewardship, calling reports of $72 billion in alleged fraud tied to the state’s budget “outrageous and appalling.”
The fellow Democrat said constituents across his district have raised persistent concerns about waste and mismanagement within California’s government.
“There needs to be full accountability for the waste and new leadership in Sacramento,” Khanna wrote on X.
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“Taxpayers are owed an accounting of where every penny of their tax dollars are going – a detailed receipt.”
The governor’s potential 2028 Presidential primary foe said he intends to pursue a bipartisan push from his role on the House Oversight Committee to address state-level fraud and draft legislation that would require an independent audit of California’s budget.
Newsom’s communications team dismissed Khanna’s claims as recycled Republican rhetoric.
Izzy Gordon, the governor’s communications director, pushed back by questioning the figures being cited.
“Interesting to see a Dem repeat the MAGA-made-up $72B number,” Gordon shot back. “That ‘fraud’ supposedly includes the $17B spent on high-speed rail — which has created 16,000 union jobs and built 50+ COMPLETED projects. Calling union work ‘fraud’ is certainly a choice.”
California’s high-speed rail project, however, has faced years of scrutiny due to delays, ballooning costs, and repeated revisions to its scope.
While California officials sparred publicly, the spotlight intensified on Minnesota following allegations of widespread fraud tied to child care and social service programs.
Federal officials announced sweeping actions that signaled the administration’s intent to clamp down aggressively.
“We have frozen all child care payments to the state of Minnesota,” Deputy Secretary of Health and Human Services and acting Centers for Disease Control and Prevention Director Jim O’Neill wrote on X Tuesday.
“You have probably read the serious allegations that the state of Minnesota has funneled millions of taxpayer dollars to fraudulent daycares across Minnesota over the past decade,” he continued, adding that he had activated a system requiring justification and documentation before funds are released.
“Starting today, all ACF payments across America will require a justification and a receipt or photo evidence before we send money to a state.”
Walz fired back, accusing Trump of politicizing the issue and using fraud allegations as leverage to cut funding.
“This is Trump’s long game,” Walz wrote on his official governor’s account. “We’ve spent years cracking down on fraudsters. It’s a serious issue — but this has been his plan all along. He’s politicizing the issue to defund programs that help Minnesotans.”
This is Trump’s long game.
We’ve spent years cracking down on fraudsters. It’s a serious issue – but this has been his plan all along.
He’s politicizing the issue to defund programs that help Minnesotans. https://t.co/7ByWjeXxu0
— Governor Tim Walz (@GovTimWalz) December 31, 2025
In a separate post on his personal account the following day, Walz parroted Newsom and boomeranged the blame onto Trump.
“While Minnesota has been combating fraud, the President has been letting fraudsters out of jail,” Walz wrote.
“Trump’s using an issue he doesn’t give a damn about as an excuse to hurt working Minnesotans.”
The White House rejected those claims, with press secretary Karoline Leavitt warning that criminal accountability is coming as investigations expand.
“People will be in handcuffs,” Leavitt said Wednesday during an appearance on “Fox & Friends,” arguing that responsibility ultimately falls on Walz because the alleged misconduct unfolded during his administration.
Karoline Leavitt says as a result of Nick Shirley's journalism on Minnesota fraud, people "WILL BE IN HANDCUFFS"
Search warrants being executed NOW.
"REAL journalism…he epitomizes what new media looks like!"
"Since Nick Shirley brought this issue further to light, we have… pic.twitter.com/cxZ0BoR6dd
— Gabriela Iglesias🇺🇲 (@iglesias_gabby) January 1, 2026
Leavitt said the Trump administration has surged federal resources into Minnesota, deploying multiple agencies to investigate alleged fraud schemes.
“This is a top priority for the administration,” she disclosed, describing an all-hands approach that includes the Department of Justice and the Department of Homeland Security.
“The Department of Justice, as we speak, is continuing to execute search warrants and subpoenas,” the press secretary continued.
“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.”
She also detailed that denaturalization remains an option on the table for offenders.
“That’s a tool at the president and the Secretary of State’s disposal, and it’s one this administration has previously used before,” Leavitt said.
“Our entire administration is working around the clock to get to the bottom of it,” she added.
Federal scrutiny is not limited to Minnesota alone. According to reporting cited Wednesday, the Department of Health and Human Services is freezing federal child care funding nationwide while it reviews how states are spending taxpayer dollars.
An HHS official said funds would be released “only when states prove they are being spent legitimately.”
HHS spokesperson Andrew Nixon said recipients of federal funds, even those “not suspected of fraudulent activity,” will be required to submit administrative data for review.
Daycare facilities in Minnesota, including those “suspected of fraudulent activity,” must provide receipts and records such as attendance logs, licensing documents, inspection reports, complaints, and investigation files.
“It’s the onus of the state to make sure that these funds, these federal dollars, taxpayer dollars, are being used for legitimate purposes,” Nixon remarked.
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