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Congress Summons Walz and Ellison Over Multi-Billion Dollar Fraud

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Congress Summons Walz and Ellison

WASHINGTON D.C. – Federal attention on Minnesota’s public benefit programs is intensifying as the U.S. House Oversight and Government Reform Committee has invited Minnesota Governor Tim Walz and Attorney General Keith Ellison to testify amid claims of large-scale fraud tied to state-run social services.

Committee Chairman James Comer (R-Ky.) announced the invitations on December 31, 2025, as prosecutors weighed losses that could reach into the billions. Those numbers have fueled sharp arguments about weak oversight during the two Democratic leaders’ time in office.

The committee is looking at what Comer called widespread fraud in federal programs. That list includes child nutrition funding, Medicaid, and housing assistance. The best-known case involves the Feeding Our Future nonprofit, which prosecutors say took more than $250 million in COVID-era child meal funds.

New disclosures and ongoing cases suggest investigators see bigger problems, including what some have described as industrial-scale schemes across multiple programs.

The current wave of cases grew during the COVID-19 pandemic. Federal rules for child nutrition programs were loosened, which made it easier for nonprofits to claim meal reimbursements. Prosecutors have charged more than 90 people, many tied to Minnesota’s Somali community, with moving public funds into personal spending. Court filings describe purchases such as luxury vehicles, real estate deals, and money sent overseas.

Minnesota Whistleblowers Blame Walz and Ellison

Investigators and auditors say red flags appeared earlier than the pandemic. State audits and whistleblower accounts point to weak controls in programs handled by the Minnesota Department of Education and the Department of Human Services, including concerns raised as early as 2019, soon after Walz took office.

One widely cited pattern involved sites that claimed to feed thousands of kids each day, even though investigators say the meals were not served. Other cases alleged billing for services that were not provided, including autism treatment claims and housing-related services.

U.S. Attorney Joseph Thompson has warned that fraud could touch as much as half of $18 billion billed across 14 Medicaid programs labeled “high-risk” since 2018. That would put possible losses around $9 billion. Walz and other state officials push back on that figure.

They point to court records and reviewed cases that they say show confirmed fraud of closer to $218 million. Reporting by outlets such as the Minnesota Star Tribune has also tracked long-running concerns, including audits that critics say were ignored and claims of retaliation against whistleblowers.

Republican state lawmakers argue early warnings did not get enough attention. Comer has said Walz and Ellison were “asleep at the wheel or complicit,” and he has pointed to allegations involving cover-ups and missing or deleted records.

Committee Hearings Put Fraud Oversight in the Spotlight

The Oversight Committee’s first hearing, “Oversight of Fraud and Misuse of Federal Funds in Minnesota: Part I,” is set for January 7, 2026. It plans to hear from three Republican members of the Minnesota House, Reps. Kristin Robbins, Walter Hudson, and Marion Rarick.

The lawmakers have argued for years that state programs were open to abuse. Robbins, who chairs the state’s Fraud Prevention and Oversight Committee, has been one of the most active voices on the issue.

A second hearing on February 10, 2026, includes direct invitations to Walz and Ellison. Comer said the committee wants clear answers, adding that taxpayers deserve an accounting of how federal money was stolen.

The committee has also requested documents from the governor and attorney general, Treasury Suspicious Activity Reports, and interviews with state officials. Comer has signaled subpoenas could follow if cooperation stays limited.

The new hearings follow Comer’s earlier steps, including letters sent in December 2025 that sought records on what state leaders knew about fraud and how they responded. The probe is also unfolding as the Trump administration takes its own actions, including a freeze on certain federal child care funds to Minnesota, while stricter checks are put in place. Walz has criticized that move as political.

Walz and Ellison Push Back

Tim Walz’s office has said it will work with Congress, but it has also criticized the committee’s approach and warned against turning the issue into a spectacle. A spokesperson pointed to steps the state says it has taken, including hiring more investigators, increasing audits in high-risk areas, closing operations flagged as suspicious, and supporting prosecutions. Walz has said his administration has referred cases to law enforcement and asked lawmakers for stronger tools.

Ellison has highlighted his office’s record on Medicaid fraud. He has pointed to more than 300 prosecutions and about $80 million recovered since 2019. His office is also reviewing legal options tied to federal funding freezes, arguing the cuts affect lawful programs that serve families who rely on assistance.

Supporters of the administration say many schemes took advantage of federal pandemic waivers. They also say state officials alerted federal agencies, including the USDA and FBI, early in some cases. They argue that some actions moved slowly due to court orders and federal requests to avoid interfering with investigations.

Bigger Stakes for Taxpayers and Public Programs

Whistleblowers and Republican critics disagree. They claim politics and relationships slowed tougher oversight. Some defendants have been reported to have donated to Democrats, including Ellison. Critics also say concerns about community tensions, including within Minneapolis’s large Somali-American population, may have shaped enforcement choices.

The Minnesota cases are now a national example of what can happen when large sums move quickly through public programs. With the DOJ bringing charges and claims that money flowed overseas (including allegations in some reports tying funds to terrorist-linked networks), the consequences reach past state politics.

Congressional hearings could also shape future federal policy. Committee leaders say they want tighter controls on how aid is approved and paid out, along with stronger penalties for those who exploit the system.

Walz and Ellison now face a public test of transparency and accountability. The Oversight Committee’s work signals a new phase in how Congress pressures state leaders over federal dollars. The core issue remains unchanged: massive fraud lasted for years, and the public wants proof it won’t happen again.

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New York Governor Hochul Slammed For Begging Rich to Return

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New York Governor Hochul Slammed

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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Trump Ousts Attorney General Pam Bondi, Taps Loyalist Todd Blanche

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Pam Bondi Trump

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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President Trump Addresses Nation on War with Iran

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President Trump Addresses Nation on War with Iran

WASHINGTON, D.C. – President Donald Trump addressed the American public from the White House on Wednesday night in his first prime-time national address since the United States and Israel launched coordinated strikes on Iran in late February, declaring that American military objectives are on the verge of being achieved and that the conflict, now in its 32nd day, will conclude “very shortly.”

Speaking for roughly 19 minutes, the president said U.S. forces have achieved “overwhelming victories” but did not offer a definitive timeline as questions swirled about when and how the war could formally wrap up.

According to a White House official ahead of the address, the president was expected to reaffirm his intention to end the war within the next three weeks and relay an “operational update” on the progress of the conflict, which he and top administration officials have characterized as running ahead of schedule.

“Operation Epic Fury”: Four Goals, One Deadline

“I’ve made clear from the beginning of Operation Epic Fury that we will continue until our objectives are fully achieved,” Trump told the nation. “Thanks to the progress we’ve made, I can say tonight that we are on track to complete all of America’s military objectives shortly, very shortly.”

The president again outlined the four core objectives the White House says it is pursuing: destroying Iran’s missiles and production facilities, annihilating its navy, ensuring Iran can no longer support regional militant groups, and guaranteeing that Tehran cannot obtain a nuclear weapon.

Trump reminded the nation that past American conflicts — World War I, World War II, the Korean War, the Vietnam War, and the war in Iraq — lasted for years, while he expects this operation to conclude soon. “We are in this military operation, so powerful, so brilliant, against one of the most powerful countries for 32 days, and the country has been eviscerated,” he said.

Threats Against Iran’s Energy Infrastructure

In some of the speech’s most pointed language, Trump escalated his warnings against Tehran, threatening severe consequences if Iran’s leadership refuses to negotiate.

The president said the U.S. will hit Iran “extremely hard” over the next two to three weeks and threatened to obliterate all of Iran’s electric generating plants and target its oil sites if the country’s leaders don’t make a deal.

Trump had previously threatened to destroy Iran’s water and energy infrastructure if a deal to end the war and reopen the key trade route is not reached soon. Wednesday night’s address signaled no retreat from that posture.

The remarks drew immediate condemnation from international observers and human rights organizations who warned that targeting civilian energy infrastructure could constitute a violation of the Geneva Convention.

The Strait of Hormuz: An Economic Crisis at Choke Point

Central to Wednesday’s address was the closure of the Strait of Hormuz, the narrow waterway through which roughly one-fifth of the world’s oil supply passes. Iran has effectively shuttered the passage since the war began, triggering a cascading global economic shock.

As a result of the war, Iran has sharply curtailed traffic through the Strait of Hormuz, leading to higher oil prices, with gasoline in the U.S. now averaging more than $4 per gallon — a level not seen since 2022.

Higher fuel costs are beginning to ripple through prices on a wide variety of goods. The Strait’s closure has also raised the price of some fertilizers, hurting farmers.

Trump told allies that countries heavily relying on the Strait of Hormuz “must take care of that passage” and “grab it and cherish it,” suggesting nations struggling to secure sufficient fuel should purchase it from the United States. He added that once the conflict concludes, “the strait will open up naturally.”

Earlier in the day, Trump had urged allies who did not join the war but are facing fuel shortages to “build up some delayed courage, go to the Strait, and just TAKE IT,” saying the United States “won’t be there to help you anymore.”

Iran Rejects Ceasefire Claims, Vows to Continue Fighting

Hours before Trump’s primetime address, the president posted on social media claiming Iran’s president had asked for a ceasefire — a claim Tehran flatly denied.

Iran’s foreign minister called Trump’s claim “false and baseless,” according to a report on Iranian state television.

Iranian Foreign Minister Abbas Araghchi told Al Jazeera that Tehran is not in direct negotiations with Washington, despite Trump’s claims that the U.S. is in “serious discussions” with what he described as a “new, and more reasonable regime” in Iran. “Negotiation is when two countries engage in talks to reach an agreement, and such a thing does not exist between the United States and us,” Araghchi said.

Iran’s foreign minister also said his country is prepared for “at least six months” of war, directly contradicting Trump’s two-to-three-week timeline for wrapping up the operation. “We do not set any deadlines for defending ourselves,” Araghchi told Al Jazeera. “We will defend our country and our people as far as necessary and by any means required.”

Regime Change and Nuclear Ambiguity

Trump addressed the sensitive issue of regime change, saying, “Regime change was not our goal. We never said regime change. But regime change has occurred because of the deaths of all of their original leaders. They’re all dead. The new group is less radical and much more reasonable.”

On the question of Iran’s nuclear capability — cited by the administration as a central justification for launching the war — the president’s position remained notably ambiguous. Trump said Tuesday, “They will have no nuclear weapon, and that goal has been attained.” But he later hinted that another president may have to return to the issue in the future, saying Iran “will not be able to do a nuclear weapon for years.”

Netanyahu, for his part, asserted that the U.S.-Israeli strikes have eliminated Iran’s ability to produce nuclear weapons and ballistic missiles, thereby removing what he called “two existential threats” to Israel.

Lebanon, Gulf States, and the Widening War

Lebanon has become another major front in the larger Middle East war. More than 1,300 people in Lebanon have been killed in about four weeks of Israeli attacks, according to Lebanon’s Health Ministry, and more than a million people have been displaced by the fighting and Israel’s broad evacuation warnings.

A drone attack struck Kuwait International Airport’s fuel depots on Wednesday, causing a “massive blaze” with significant damage to fuel tanks, though no injuries were reported. Meanwhile, Bahrain’s Interior Ministry said it was working to extinguish a fire at a company facility following a separate Iranian drone attack.

Some Persian Gulf allies, including Saudi Arabia and the United Arab Emirates, have privately urged the Trump administration to press ahead with strikes on Iran to ensure the regime can no longer threaten the region with ballistic missiles and drones. “Our message is: Finish the job,” said one senior Gulf official.

Public Opinion and Political Pressures

The address comes at a politically fraught moment for the administration. Trump’s approval rating has continued to slide amid the war, hitting first-term lows in both the New York Times and RealClearPolitics polling averages.

New CNN polling shows just one-third of the American public believes Trump has a clear plan to handle the situation in Iran. Americans are not sold on the war’s costs, and significantly more Americans say the economy — rather than the war — is the most important issue facing the country.

Oil prices fell below $100 per barrel, and Asian shares surged on Wednesday over renewed optimism about a potential de-escalation following Trump’s suggestion he would likely end U.S. operations within several weeks. Brent crude, the international benchmark, dropped to $99.05 per barrel in early trading.

The foreign ministers of Pakistan and China issued a joint statement Tuesday calling for talks as part of a broader peace plan, demanding a ceasefire, an end to attacks on civilian infrastructure, and the reopening of the Strait of Hormuz.

As the conflict enters its second month with no formal ceasefire in sight, the coming days may prove decisive — a sentiment echoed by Defense Secretary Pete Hegseth, who declared earlier this week that the “upcoming days will be decisive” in the war with Iran.

This is a developing news story. Updates will be published as further information becomes available.

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