The Trump administration is now paying people who share information about fraud in Minnesota. U.S. Treasury Secretary Scott Bessent announced this during a Fox News interview. Anyone with details about the fraud cases can get cash rewards for coming forward.
Minnesota is currently dealing with a major fraud investigation. The state faces multiple claims of money laundering and misuse of taxpayer money. Federal authorities are looking into several childcare centers and food programs that allegedly took government funds without providing actual services.
“We know that these rats will turn on each other,” Bessent said on The Ingraham Angle. He explained that the government wants whistleblowers to share who was involved, what happened, when it occurred, where it took place, and how the fraud was carried out.
The whistleblower program targets ongoing corruption in the state
He believes these payments will help speed up the investigation. Officials say the program could lead to faster prosecutions and recover millions in lost taxpayer funds, highlighting the administration’s focus on accountability.
Several childcare facilities and food distribution centers in Minnesota are accused of fraud. These locations allegedly received federal funding but never actually provided childcare or served food. Instead, investigators say they used the money for laundering schemes. The Quality Learning Center was one of the main facilities at the center of these allegations.
A state audit revealed serious problems with how grant programs were monitored. The Department of Human Services’ Behavioral Health Administration gave out hundreds of millions in federal funding for mental health and addiction services with little oversight. A video by Nick Shirley last month showed daycare centers that appeared closed despite getting millions in government money.
The Trump administration has frozen several federal funding streams to Minnesota. This includes money from the Department of Health and Human Services and the U.S. Department of Agriculture. However, a federal judge temporarily stopped the administration from freezing about $10 billion in funding to five Democratic-led states on Friday. Trump recently made headlines for his conversation with President Petro regarding international relations.
Bessent pointed out that the fraud is still happening. He mentioned a recent case where someone convicted of fraud tried to bribe a juror. “They thought they could get away with it, but the system caught them,” Bessent said. “Even now, these schemes continue, and we need every whistleblower to come forward.” The person received $200,000 to bribe the juror but kept $80,000 for themselves and only offered $120,000 as a bribe.
Homeland Security investigators are now involved in the Minneapolis fraud investigation. The Treasury Department is also checking whether any of the stolen funds reached the terror group al-Shabab. While Trump has stated his views on international law, federal investigators continue pursuing these fraud cases under existing legal frameworks.
Published: Jan 10, 2026 03:15 pm