(Celal Gunes/Anadolu/Getty Images (left); Michele Crowe/CBS/Getty Images (right))

Karoline Leavitt warns ‘people will be in handcuffs’ as feds zero in on Minnesota fraud scandal

Thomas Smith
4 Min Read

White House press secretary Karoline Leavitt warned Wednesday that arrests are imminent as federal authorities expand investigations into alleged large-scale fraud tied to programs operating during Minnesota Gov. Tim Walz’s administration.

“People will be in handcuffs,” Leavitt said during an appearance on Fox & Friends, adding that President Donald Trump intends to hold Walz accountable for activity that occurred while he was governor.

According to Leavitt, the Trump administration has significantly increased federal involvement in Minnesota, with multiple agencies now pursuing parallel investigations connected to the allegations.

Immigration and Customs Enforcement (ICE) is among those agencies, conducting door-to-door operations at locations believed to be linked to fraudulent activity. ICE Director Todd Lyons discussed the effort earlier this week, describing it as a key part of the federal response.

“This is a top priority for the administration,” Leavitt said.

She outlined a broad, coordinated effort across the federal government. The Department of Justice is continuing to execute search warrants and subpoenas, while the Department of Homeland Security is carrying out on-the-ground investigations at potential fraud sites. DHS is also continuing deportation operations involving individuals found to be in the country illegally.

Leavitt added that the administration is prepared to pursue denaturalization where applicable, calling it a lawful tool available to the president and the secretary of state and one that has been used before.

Several other federal departments are also involved. Health and Human Services, Agriculture, and Labor are each conducting reviews tied to their respective programs. One agency has suspended childcare funding to Minnesota pending further review, another is examining the state’s unemployment insurance program, and a third has demanded that the Walz administration turn over the names of all SNAP recipients in the state.

“Our entire administration is working around the clock to get to the bottom of it,” Leavitt said.

Walz, who has faced mounting scrutiny since the allegations emerged, has acknowledged the seriousness of the situation and said responsibility ultimately rests with him. He has pledged to address the issue, even as his administration has questioned some federal estimates related to the scope of the alleged fraud.

As part of the state’s response, Walz ordered a third-party audit of Medicaid billing through Minnesota’s Department of Human Services and paused payments for certain services while that audit is underway, according to FOX 9.

In a statement to the outlet, Walz said the state must act decisively to restore public trust.

“We cannot effectively deliver programs and services if they don’t have the backing of the public’s trust,” he said. “In order to restore that trust, we are pumping the brakes on 14 programs that were created to help the most disadvantaged among us, yet have become the target of criminal activity.”

Walz added that anyone attempting to exploit public programs would face consequences. “If you attempt to defraud our public programs and steal taxpayer dollars out from under the people who need them most, you will be stopped, and you will be held accountable,” he said.

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