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ROCKY MOUNT, N.C. — Vice President JD Vance hinted at targeting California as the next state where major fraud investigations will take place and revealed that fraud discovered in the Minneapolis area has “probably been $19 billion at least” since the administration began investigating in the Twin Cities.
In January, Vance announced an interagency task force within the Department of Justice that specifically targets fraud, and reports suggest the vice president will soon lead a new task force established through a Trump executive order.
“We know there’s a lot of fraud in California, and we’re trying to get to the bottom of exactly what it looks like and what we’ve done in the Trump administration,” Vance said in response to a question by Fox News Digital following his speech Friday afternoon at the Power House event center that focused on the economy, public safety and election integrity.
“And the president has really empowered us to do this, is to take the first national look at the way the American people have been defrauded over many, many years.”
Vice President JD Vance suggested Friday that California could be the next focus of major federal fraud investigations, while claiming that fraud uncovered in the Minneapolis area may total at least $19 billion. (Kent Nishimura/Getty Images)
In January, President Donald Trump was critical of California, announcing that the “fraud investigation of California has begun,” and said that the state was “more corrupt than Minnesota.”
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Democratic California Gov. Gavin Newsom defended the Golden State’s fraud protection in February, saying that California’s Franchise Tax Board has blocked billions in fraud in recent years.
“In the actual world where adults govern — Gavin Newsom has been cleaning house,” a spokesperson for Newsom told Fox News Digital. “Since taking office, he’s 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.
“Gavin Newsom runs a state,” the spokesperson added. “Donald Trump runs his mouth. Again and again, we’ve shown that the programs they are attempting to call out are programs the FEDERAL GOVERNMENT is administering, not the state. We suggest they get their house in order.”
Vance on Friday pointed to fraud that has occurred in Minnesota, telling Fox News Digital and reporters that taxpayer dollars are footing the bill for the illegal misuse of funds.
Democratic Gov. Gavin Newsom defended the state’s safeguards and said California’s tax agency has blocked billions of dollars in fraud in recent years. (AP Photo/Jeff Chiu, File)
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“You asked about Minnesota, [and] we think that there’s probably been $19 billion at least to fraud just committed in Minneapolis in the surrounding areas,” Vance explained. “Let me give you an example of this, because it’s not just the American people being defrauded. It’s not just your tax dollars that are being stolen out of your wallet and given to fraudsters.
“It’s the fact that the services we need to deliver to needy people are not getting delivered because they’re going to fraudsters,” he added.
Federal investigators in Minnesota launched a probe in 2022 into the nonprofit Feeding Our Future, which prosecutors later identified as a key player in what became one of the largest COVID-19 relief fraud cases uncovered.
Homeland Security Investigations (HSI) agents conduct a fraud investigation in Minneapolis, following the release of a video over the weekend on alleged daycare fraud. (Department of Homeland Security)
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As the investigation progressed, authorities said they uncovered roughly $250 million in fraudulent claims, with 78 people ultimately charged in connection with the scheme.
Prosecutors have also suggested the broader fraud linked to related programs could total as much as $9 billion.
Independent journalist Nick Shirley took to the streets of Minneapolis in late Dec. 2025, and discovered one organization that claimed to be a type of daycare where the word “learning” was misspelled on the front door of the facility.
Quality Learning Center in Minnesota was found at the center of an alleged childcare fraud scandal in the state. (Madelin Fuerste/Fox News)
Vance poked fun at the organization, which has since shut its doors, during his response to Fox News Digital reporter’s question on Friday.
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“When you have a Somali fraudster come into the United States illegally and then set up a school to collect tax dollars, and the name of the school is the Quality Learning Center, but when they put the sign up, they take the ‘n’ out. So it says ‘quality learing center,’” Vance explained.
“I don’t know about you, but I don’t want to send my kids to a school where they can’t spell ‘learn.’ That group was getting millions of dollars from the American taxpayer.”
Preston Mizell is a writer with Fox News. Story tips can be sent to [email protected] and on X @MizellPreston
