President Donald Trump welcomed 2026 at his Mar-a-Lago resort after a turbulent first year back in power.
The New Year’s Eve party followed a familiar script. Political allies. Celebrities. Cameras.
While celebrating, Trump accused Democratic states of massive fraud involving child care funds. He named New York, California, and Illinois. He offered no evidence.
“They stole $18 billion dollars, that’s just what we’re learning about,” Trump said. “California, Illinois and sadly New York is worse. A lot of other places too. We’re gonna get to the bottom of all of it. It’s a giant scam. We’re gonna get that money back.”
Trump: We’re going to take back our country. They stole $18 billion. That’s peanuts. California is worse. Illinois is worse. Sadly, New York is worse pic.twitter.com/7FiP0tXN9t
— Acyn (@Acyn) January 1, 2026
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Trump appeared to be referring to an ongoing federal investigation in Minnesota. That probe focuses on alleged fraud tied to child nutrition and daycare programs.
However, Trump’s claim was misleading.
The $18 billion figure does not represent stolen money. It reflects the total amount of federal funding spread across 14 programs in Minnesota since 2018. Prosecutors have estimated that actual fraud losses may reach about $1 billion.
Federal prosecutor Joe Thompson said earlier this month that losses from all fraud cases in the state could exceed that amount.
Trump did not clarify this distinction.
The investigation has drawn attention because many of the defendants are Somali Americans. Of the 92 people charged so far, 82 are Somali, according to the U.S. Attorney’s Office.
Minnesota is home to one of the largest Somali communities in the country. About 84,000 Somali Americans live in the Minneapolis St Paul area. Most are U.S. citizens. Many were born in the United States.
Despite this, Trump has repeatedly targeted the community. He recently used offensive language about Somali immigrants and linked them broadly to fraud cases.
State leaders have pushed back.
Minnesota Governor Tim Walz said fraud would not be tolerated but warned against blaming an entire group. He said his administration is working with federal agencies to stop fraud and hold offenders accountable.
Walz also confirmed that a full audit is underway and expected to be completed in January. He said the $1 billion estimate could be accurate.
Representative Ilhan Omar echoed that message. She urged the public not to paint an entire community with the actions of a few individuals.
Featured image via X screengrab
