Vice President JD Vance says Minnesota’s fraud scandal reflects a larger scheme and that the Trump administration believes there is a nationwide fraud ring perpetrated by illegal aliens and others taking advantage of the American welfare system.
“Anybody who is involved is going to get prosecuted,” Vance vowed on “Jesse Watters Primetime” Wednesday.
The vice president’s comments come as the Trump administration is pausing over $10 billion to five Democrat-run states, including California, over concerns that money was fraudulently given to noncitizens.
Vance addressed whether he thinks Minnesota Gov. Tim Walz, who announced Monday he would not seek re-election, should resign over his state’s fraud scandal, which is estimated to be at least $9 billion.
“I think Tim Walz should resign,” Vance told Fox News host Jesse Watters. “I almost feel bad for the guy, except for the fact that he should’ve seen this.”
Minnesota’s scandal is a “massive failure of government,” Vance said.
“It’s not just that people are getting welfare who shouldn’t get welfare. … It’s bigger than that,” Vance said. “It’s that people take this money and create whole businesses around siphoning money from the American taxpayer. “
Minnesota State Rep. Kristin Robbins, left, delivers an opening statement as she testifies alongside, left to right, Minnesota State Reps. Walter Hudson and Marion Rarick and former special counsel at the Department of Justice Brendan Ballou during a hearing before the House Oversight and Government Reform Committee about the Minnesota fraud scandal. (Chip Somodevilla/Getty Images)
The vice president predicted similar cases of fraud will be found in other places around the country.
Democratic Minnesota Gov. Tim Walz speaks to reporters after he announced he would not seek reelection at the Minnesota State Capitol in St. Paul, Minn., Jan. 5, 2026. (Reuters/Tim Evans)
He went on to accuse California of being “glaring and obvious about the fact they are giving welfare benefits to illegal aliens,” adding the Trump administration is sending investigators to “a lot of places.”
In a statement to Fox News Digital, Newsom’s office said the California Department of Social Services administers childcare and other essential programs that allow working families to “afford safe, reliable care so parents can go to work, support their families and contribute to their communities.
California Gov. Gavin Newsom and Department of Homeland Security Secretary Kristi Noem (Nelvin C. Cepeda/The San Diego Union-Tribune; Arnold Jerocki/Getty Images)
“These funds are not optional. They are critical lifelines for working families across California,” the office said. “The State of California aggressively investigates and prosecutes fraud. Using unsupported allegations to withhold childcare funding only from states that didn’t vote for the President doesn’t stop fraud — it harms struggling moms and dads President Trump claims to be fighting for.”
