Leavitt calls Minnesota 'land of 10,000 Somali schemes' in scathing Walz takedown over fraud scandals

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Leavitt calls Minnesota 'land of 10,000 Somali schemes' in scathing Walz takedown over fraud scandals

White House press secretary says Trump admin continuing to probe misuse of public funds

Taylor Penley Fox News

Published

January 6, 2026 8:25am EST

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Karoline Leavitt: Minneapolis has been turned into the land of ’10,000 Somali schemes’

White House press secretary Karoline Leavitt gives her take on why Minnesota Gov. Tim Walz dropped out of the gubernatorial race and what’s next for Venezuela on ‘Jesse Watters Primetime.’

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White House press secretary Karoline Leavitt blasted Minnesota Gov. Tim Walz on Monday after the state's mounting fraud scandal contributed to his decision to end his re-election bid.

"President Trump has been calling out Tim Walz for his incompetence and corrupt leadership for a very long time, and Trump was right about everything…" Leavitt told "Jesse Watters Primetime."

"A state that was once known as the land of 10,000 lakes has been turned into the land of 10,000 Somali schemes because of their governor."

Leavitt’s remarks refer to multiple alleged fraud schemes in Minnesota that, according to state and federal investigators, involved the misuse of public funds intended for social services and other government programs.

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White House press secretary Karoline Leavitt and Gov. Tim Walz

White House press secretary Karoline Leavitt speaks during a daily press briefing in the Brady Press Briefing Room at the White House on April 15, 2025, in Washington, D.C. (left); Minnesota Gov. Tim Walz announces that he will not be seeking re-election Monday, Jan. 5, at a press conference at the State Capitol in St. Paul, Minn. (right) (Win McNamee/Getty Images (left); Jerry Holt/The Minnesota Star Tribune via Getty Images (right))

Several of the cases center on nonprofit organizations accused of submitting false claims or diverting taxpayer money, with prosecutions and audits ongoing.

Republicans have argued the scandals reflect broader failures of oversight within the Walz administration, accusing the governor of ignoring warning signs and allowing massive sums of money to be improperly distributed.

"The scale of the fraud that the Trump administration, with the help of great independent journalists like Nick Shirley, is uncovering right now, is surely shocking," Leavitt added, referring to the viral video appearing to show Minnesota daycare centers that were non-operational despite allegedly receiving millions of dollars in government aid.

KAROLINE LEAVITT WARNS 'PEOPLE WILL BE IN HANDCUFFS' AS FEDS ZERO IN ON MINNESOTA FRAUD SCANDAL

Quality Learning Center in Minnesota became central to an alleged childcare fraud scandal in the state. (Madelin Fuerste / Fox News Channel)

"The Department of Justice has convicted and prosecuted nearly 100 defendants in Minnesota and, because of these new details and this new reporting that has come to light, this is an all-hands-on-deck, across-the-entire-government effort."

Walz has publicly acknowledged the fraud and pledged to tackle it, saying the situation "is on my watch" and that he is "accountable" for fixing it, even as his administration has questioned some federal estimates regarding the massive scale of the fraud.

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Minnesota Republican hopes to flip state red after Walz drops out

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Walz issued a third-party audit of Medicaid billing through Minnesota's Department of Human Services and paused payments for some services while an audit is underway, according to FOX 9 in St. Paul.

A spokesperson for Walz recently released a statement addressing the swath of allegations plaguing the state, saying, "The governor has worked for years to crack down on fraud and asked the state legislature for more authority to take aggressive action. He has strengthened oversight."

Taylor Penley is an associate editor with Fox News.

Leavitt calls Minnesota 'land of 10,000 Somali schemes' in scathing Walz takedown over fraud scandals