Politics
Senate Hearing on Fraud and Foreign Influence Turns Tense Over Minnesota Scandals
WASHINGTON, D.C. – A Senate Homeland Security and Governmental Affairs Subcommittee hearing titled “Examining Fraud and Foreign Influence in State and Federal Programs” turned tense on February 10, 2026.
Senators argued over claims that huge sums were stolen from taxpayer-funded programs, with Minnesota at the center, while witnesses also raised concerns about foreign actors and hard-to-track nonprofit funding.
Sen. Josh Hawley, R-Mo., led the hearing at the Dirksen Senate Office Building. Testimony focused on how failures at the state level may connect to larger national risks. Witnesses described organized fraud rings, possible overseas links, and “dark money” channels that they said help fund protests and protect bad actors.
The Main Issues Behind the Senate Clash
The hearing focused on two broad concerns. First, lawmakers examined large-scale fraud in state and federal programs. Second, they looked at whether foreign influence and hidden funding networks are weakening public institutions in the United States.
Senators pressed witnesses on how money meant for vulnerable people, including children, seniors, and disaster victims, may have ended up with criminal groups. Minnesota drew special attention because of several major cases tied to child nutrition programs, Medicaid services, and pandemic relief funds.
Critics said state officials ignored red flags, punished whistleblowers, and let the problem grow. Others warned that focusing too much on certain groups or donors could turn oversight into a political fight.
Major Fraud Claims Tied to Minnesota Programs
Minnesota State Sen. Mark Koran, a Republican, gave blunt testimony based on nine years of work on the Legislative Audit Commission. He said fraud in the state is “pervasive and systemic” and reaches from agencies to the executive branch.
- Agencies often failed to verify whether grant-funded work was ever done.
- In one case, documents were allegedly backdated to mislead auditors, which Koran said was a first in an auditor’s 27-year career.
- Koran estimated that billions of dollars were stolen, far beyond the public figures discussed so far.
- He said the damage hit programs serving children, older adults, vulnerable residents, and honest providers, including child nutrition and Medicaid-related services.
- Federal prosecutors have said as much as $9 billion may have been lost in Minnesota through fake daycares, food programs, and health clinics.
Koran blamed what he called “gross incompetence or willful complicity” under Gov. Tim Walz and Attorney General Keith Ellison. He pointed to ignored audits, retaliation against whistleblowers, and stalled reform efforts. He argued that Minnesota’s fraud crisis marks one of the largest and fastest-growing expansions of fraud in the country.
He also outlined tactics that fraud networks allegedly used:
- Setting up shell groups to bill the government for services never provided.
- Taking advantage of relaxed pandemic rules that sped up funding.
- Moving stolen money into luxury purchases, overseas accounts, or criminal activity such as drug trafficking and human exploitation.
Haywood Talcove, CEO of LexisNexis Risk Solutions, widened the scope beyond Minnesota. He said the federal government loses about $1 trillion each year to fraud, or about $115 million every hour. He added that roughly 70 percent of that fraud involves transnational criminal groups. According to Talcove, stolen funds often support organized crime, terrorism-related networks, or hostile foreign actors.
Talcove said criminals go after programs that elected and appointed officials are reluctant to challenge. He also said fraud rings learned during the pandemic that the government keeps paying out money and that the odds of getting caught are very low.
Claims About “Dark Money” and Foreign Influence
The hearing grew more contentious when the discussion shifted to nonprofit funding and protest activity linked to pushback against fraud enforcement.
Seamus Bruner, vice president of the Government Accountability Institute, testified that his group traced more than $60 million in payments to about 14 groups active in Minnesota. Some were local organizations, while others had a national reach. He said the money came through networks tied to George Soros, Arabella Advisors, Neville Roy Singham, and groups such as Tides and the Ford Foundation.
Bruner described the funding setup as a classic “dark money” model. In his view, layered grants make it hard to follow the money while shaping policy, protecting political interests, or organizing disruption when fraud probes put pressure on the system. He also linked some of the networks to coordinated unrest, including anti-ICE protests.
Witnesses and senators tied those concerns to foreign influence in several ways:
- Hawley pointed to the chance of money linked to the Chinese Communist Party and other transnational actors.
- Witnesses said some stolen funds move overseas or support activity that fuels unrest in U.S. cities.
- Talcove connected benefit fraud to larger criminal systems involving Russia, other countries, and hostile foreign governments.
Hawley said American taxpayers are being robbed of billions, especially in Minnesota, while foreign actors stir chaos in the streets. He called for the Department of Justice to investigate the networks and bring prosecutions.
Koran added that some protest activity in Minnesota appeared highly organized. He mentioned reports of training 30,000 observers, doxxing, attacks on federal agents, including one who lost a finger, and efforts to interfere with law enforcement.
Pushback and Broader Reform Proposals
Still, not every witness or senator framed the issue the same way. Dylan Hedtler-Gaudette of the Project On Government Oversight, POGO, urged lawmakers to focus on broad, nonpartisan fixes to waste, fraud, and abuse across government. He said the problem goes well beyond one state or one community.
Some Democrats also warned against tying the issue too closely to certain groups, including Minnesota’s Somali-American community in some cases, or to high-profile donors. They said that approach could divide the public and undercut legitimate concerns.
Several reform ideas came up during the hearing:
- Koran backed an independent Office of Inspector General for Minnesota. He said the measure passed the state Senate with bipartisan support but was blocked in the House.
- He also called for stronger eligibility checks and federal incentives that reward states for lowering error rates.
- Talcove and other witnesses pushed for stronger identity checks, better data tools, and pre-payment screening to stop fraud before money goes out.
- Hawley and other Republicans stressed tougher prosecutions, more scrutiny of nonprofit funding webs, and using Minnesota as a warning sign for the rest of the country.
Witnesses agreed on one point: fraud hurts the people these programs are supposed to help. It delays aid, drains public money, and weakens trust in safety-net programs.
Why the Hearing Matters
The February 10 hearing was part of a wider congressional effort that includes House Oversight hearings on Minnesota funds and related Senate investigations. It showed how failures in one state can lead to major national losses and raise homeland security concerns tied to transnational crime and foreign influence.
Supporters of the hearing’s approach said unchecked fraud damages disaster response, pulls money away from people in need, and may help fund activity that destabilizes communities. Critics said the framing could distract from the deeper task of fixing weak systems across all programs.
One witness summed up the stakes in simple terms. Stolen taxpayer dollars do not just disappear. They often end up paying for luxury goods, moving overseas, or supporting criminal enterprises.
The hearing closed with fresh calls for accountability, stronger oversight tools, and Justice Department action. Whether that leads to new laws or criminal cases is still unclear. Still, the session exposed deep disagreements over how government should protect public money when fraud, politics, and outside influence all collide.
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Politics
Eric Swalwell’s Governor Campaign in Crisis After Multiple Assault Allegations Surface
SACRAMENTO – The race for California’s next governor took a seismic shift Friday as Representative Eric Swalwell’s campaign plummeted into chaos. Two separate investigative reports have surfaced detailing serious allegations of sexual assault and professional misconduct, leading to a mass exodus of campaign staff and a chorus of voices demanding his immediate withdrawal from the contest.
By Friday afternoon, what began as a promising bid to lead the nation’s most populous state appeared to be on the verge of total collapse.
The crisis began with a series of investigative reports published late Thursday and early Friday morning. The reports include testimony from former aides and acquaintances who allege a pattern of inappropriate behavior spanning several years.
One report details an incident of alleged sexual assault involving a former campaign volunteer during a 2022 fundraising event. A second report outlines multiple accounts of “predatory” professional misconduct, with several women describing an environment where career advancement was allegedly tied to personal favors.
While the Congressman has long been a fixture in national politics—known for his frequent cable news appearances and high-profile role in impeachment proceedings—these new allegations have created a political firestorm that transcends his usual partisan battles.
Eric Swalwell’s Campaign in Freefall
The internal reaction to the news was swift and devastating. By Friday morning, at least six senior staffers, including his campaign manager and communications director, had tendered their resignations.
In a joint statement, several departing aides expressed their inability to continue their work:
“We joined this campaign because we believed in a vision for California’s future. However, the nature of the allegations brought to light today is inconsistent with the values we hold. We can no longer, in good conscience, represent this candidacy.”
The loss of top-tier talent leaves the Swalwell operation without a functional leadership structure at a critical juncture in the primary cycle.
The political fallout has not been limited to internal staff. In California, where the Democratic Party holds a supermajority, the “blue wall” of support for Swalwell is rapidly crumbling.
Calls for Withdrawal
- Prominent Allies: Several high-ranking members of the California Democratic delegation, who had previously endorsed Swalwell, issued a “wait-and-see” stance earlier in the day before eventually calling for him to step aside to “allow the party to heal.”
- Gubernatorial Rivals: Rival candidates were more direct. State Senator Aisha Wahab and Lieutenant Governor Eleni Kounalakis both issued statements Friday suggesting that the allegations make Swalwell’s continued presence in the race a “distraction” from the needs of Californians.
- Advocacy Groups: Women’s rights organizations and political action committees that typically support Democratic candidates have frozen their funding and called for an independent investigation.
Swalwell’s Response
Representative Swalwell’s office released a brief, defiant statement Friday afternoon. In it, the Congressman denied the most severe allegations, calling them “politically motivated attacks” intended to derail his momentum.
“I have spent my career fighting for justice and the rule of law,” the statement read. “I am deeply saddened by the departure of my staff, but I intend to stay in this race and allow the facts to come out. I ask for the public to reserve judgment until the full story is told.”
Despite the defiance, political analysts suggest the path forward is nearly non-existent. With no campaign infrastructure and a rapidly evaporating donor base, the logistics of a statewide run become nearly impossible.
The 2026 California Gubernatorial race is already one of the most expensive and watched contests in the country. With Governor Gavin Newsom termed out, the field is crowded with ambitious Democrats.
If Swalwell exits the race, it would trigger a massive realignment of endorsements and campaign contributions. Political strategist Marcus Thorne noted that the “Swalwell lane”—which focused on gun control and tech-forward policy—is now wide open.
“This isn’t just about one man anymore,” Thorne said. “This is about the integrity of the Democratic primary. If he stays in, he risks dragging the entire party down with him in a year where every vote counts.”
The coming days will be decisive. California’s filing deadlines are approaching, and the pressure from the Democratic National Committee (DNC) is reportedly intensifying behind the scenes.
For now, the Congressman remains in the race, but he finds himself increasingly isolated on a political island. As the sun set over the State Capitol on Friday, the question among Sacramento insiders was no longer if Swalwell would exit, but when.
Key Takeaways from the Friday Crisis:
- Two Investigative Reports: Allegations include sexual assault and workplace misconduct.
- Mass Resignations: Key leadership, including the Campaign Manager, has quit.
- Bipartisan Pressure: Both allies and rivals are demanding he end his bid for Governor.
- Political Vacuum: A Swalwell exit would shift millions of dollars in potential donations to other candidates.
The scandal marks a stunning turn for a politician who once sought the Presidency and has been a leading voice in the House of Representatives. In the fast-moving world of California politics, the next 72 hours will likely determine if Eric Swalwell’s political career can survive or if this is the final chapter.
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Politics
New York Governor Hochul Slammed For Begging Rich to Return
NEW YORK – Governor Kathy Hochul faces criticism from both sides of the aisle. She recently urged wealthy people who fled the state to come back. However, folks still remember her 2022 campaign remarks. Back then, she told opponents to grab a bus ticket to Florida.
This change fuels charges of inconsistency. It also spotlights New York’s shrinking tax base. The state struggles to fund its big social programs as a result.
At a Politico event this month, Hochul discussed state finances. She rejected New York City Mayor Zohran Mamdani’s push for higher taxes on the rich. Instead, she stressed the need to keep or attract high earners.
“We need high-net-worth people to back our generous social programs,” she said. Some patriotic millionaires already pay extra, she noted. Then she added a key point. “First, let’s head to Palm Beach and convince some to return home. Our tax base has shrunk too much.”
Hochul admitted that other states offer lower taxes for people and businesses. Data backs this up. Many rich New Yorkers have moved to Florida, Texas, and similar spots in recent years.
Critics point to her words from four years ago. Hochul campaigned against Republican Lee Zeldin. She aimed barbs at Donald Trump and Dutchess County Executive Marc Molinaro.
“Trump, Zeldin, and Molinaro should jump on a bus to Florida where you fit. Get out of town. You don’t match our values,” she declared.
Now, people say those comments pushed conservatives and tax-weary wealthy folks to leave. Many packed up for warmer, cheaper states. Social media lights up with side-by-side videos of her old rant and new appeal. Commentators call it desperate or a total reversal. Budget woes drive the shift, they claim.
New York’s Tax Base Challenges
The state counts on top earners for most income tax revenue. A few percent of residents cover a huge chunk. When they go, schools, health care, transit, and services suffer big losses.
IRS data shows an outflow of rich people and workers. Palm Beach County in Florida draws a lot of that wealth.
Hochul’s camp highlights New York’s strengths in finance, tech, culture, and business. Still, they recognize the competition. Florida’s no-income-tax policy and lower living costs pull people away.
Several factors fuel this exodus, reports show. High income taxes lead the pack since New York tops national rates. Housing, utilities, and daily costs stay sky-high, especially near the city. Remote work after COVID lets pros relocate easily. Policy clashes over crime, schools, and rules send some packing. Plus, many skipped town during pandemic lockdowns and stayed gone.
Reactions Roll In from New Yorkers
Responses hit fast and hard. Nassau County Executive Bruce Blakeman, a Republican running for governor, dubbed it Hochul’s most honest moment. He mocked the pitch to swap Palm Beach sunshine, no state tax, and calm for New York’s issues. Cut taxes and costs instead of pleading, he advised.
Conservatives and business leaders agree. They push for tax cuts, fewer rules, and safer streets to compete. Appeals to patriotic millionaires won’t cut it, they say.
Some Democrats back her, though. They view it as facing facts. A wide tax base funds key services without slamming one group. The state offers incentives to lure businesses and people, they add. Online, memes mock the flip. “Come back, we need your tax money” pops up everywhere.
Bigger Picture: Blue State Exodus
New York isn’t unique. California and Illinois lose residents and firms to low-tax red states, too. This trend stirs national debates. Experts warn of a downward spiral. Fewer taxpayers force rate hikes. That chases away more people.
Hochul resists broad tax hikes on the rich during budget battles. She wants the state to stay competitive. Yet progressives like Mamdani demand more from top earners. Her words seek balance. Keep taxes fair and draw back high earners. With re-election looming, this topic matters. Voters watch budget moves, the economy, and daily life.
Tax-cut fans urge affordable homes, safe streets, cheap energy, and pro-business rules. Left-leaning critics want steeper taxes on the rich and bigger social spending.
Regular New Yorkers ask why people left and what pulls them back for good. Hochul reopened that talk publicly. Her Palm Beach plea may fall flat without policy fixes. Reactions so far scream too late. The next months will show if migration reverses or wealth keeps flowing out. Her mixed signals leave some confused and others mad.
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Politics
Trump Ousts Attorney General Pam Bondi, Taps Loyalist Todd Blanche
WASHINGTON, D.C. – President Donald Trump shocked the Justice Department on Thursday. He fired Pam Bondi as U.S. Attorney General. Her deputy, Todd Blanche, steps in right away as acting attorney general.
Trump posted the news on Truth Social. He called Bondi a great American patriot. She now heads to a key private-sector job. Trump praised Blanche as a talented legal expert. This switch follows weeks of backlash against Bondi’s leadership. People questioned her work on big cases.
Bondi served about a year as attorney general. She started in early 2025. The Senate confirmed her on strict party lines.
Both parties criticized her during that time. Some said she chased politically driven cases. Others doubted the handling of the Jeffrey Epstein files. Epstein, the convicted sex offender, still draws huge attention.
Lawmakers from both sides accused her team of delaying sensitive papers. They wanted more openness. Bipartisan pressure built up.
Bondi fought back in statements. She highlighted fraud fights and immigration work. Reports show Trump talked with advisors for days about a change. Bondi knew about those chats.
In her statement, Bondi said she felt proud to serve. She plans a smooth handover with Blanche over the next month. She looks forward to her private job. There, she will keep backing Trump’s goals.
Meet Todd Blanche: Trump’s Pick for Acting AG
Todd Blanche, age 51, has a solid legal background. He began as a federal prosecutor in New York City’s Southern District. For almost 10 years, he tackled violent crimes, fraud, and corruption.
Later, he joined private practice at Cadwalader, Wickersham & Taft as a partner. He handled investigations and defenses. His clients included Paul Manafort and Rudy Giuliani. Most importantly, he defended Donald Trump.
Blanche led Trump’s team in the New York hush-money case with Stormy Daniels. He also worked on the 2020 election issues and the classified documents matter.
Trump trusted him after that close teamwork. Post-2024 election, Trump picked him as deputy attorney general. The Senate approved him 52-46 in March 2025.
As deputy, Blanche ran daily operations. That covers the FBI, DEA, ATF, and U.S. Marshals. He even acted as the librarian of Congress briefly. This firing marks the second major cabinet exit lately. Other spots in the administration faced shake-ups, too.
Friction points included several issues. First, the Epstein files stirred trouble. People questioned the release timing and fullness. That led to favoritism claims.
Next, some saw aggressive pursuits against Trump’s foes. In addition, internal fights over staff, focus, and messages grew. Trump stressed loyalty and outcomes in his post. He thanked Bondi. He showed faith in Blanche’s skills. Blanche replied fast on social media. He thanked Bondi for leadership and friendship. He also thanked Trump for the chance.
How Parties Responded
Democrats hit back hard. Senate Minority Leader Chuck Schumer worried about Blanche’s Trump lawyer’s past. They fear it mixes loyalty with fair justice. Some noted his Ghislaine Maxwell interview. Maxwell is linked to Epstein. Critics called it wrong, but transcripts showed no formal deal.
Republicans backed the move. They praised Bondi’s crime and border work. They view Blanche as a steady prosecutor who gets Trump’s plans. Experts note acting AGs often fill in short-term. The White House hunts for a Senate-approved permanent pick. EPA head Lee Zeldin pops up in talks.
The department has over 115,000 staff. It covers security and rights protection. Top changes hit morale, probes, and policies. Blanche promises steady work in key spots. He talks up fraud battles, police support, and trust-building lately.
Fans like his prosecutor-defense mix for balance. Critics worry Trump ties mean more politics. For now, he handles the switch. He juggles big cases while they pick a long-term boss.
Trump might nominate Blanche full-time. Sources say he considers other loyal conservatives, too. Any pick needs Senate okay. Republicans hold a slim edge. Hearings could spark fights over independence. Bondi’s leave prompts oversight vows. Both parties plan checks, maybe testimony on old calls.
Trump ousted Pam Bondi after 14 months. Todd Blanche, his ex-lawyer and deputy, takes the acting AG role. Criticism over the Epstein files and more drove it. Bondi heads private; she sees it as an honor.
Todd Blanche offers New York prosecution chops and private know-how. Parties split: loyalty vs. fairness worries. It fits recent staff shifts. Blanche now guides Justice amid heat. Watch how he handles probes and politics.
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