Vice President JD Vance disclosed on March 13, 2026, that federal investigations in the Minneapolis area have uncovered at least $19 billion in fraud since the Trump administration began probing the region. Speaking at an event in Rocky Mount, North Carolina, Vance also indicated that California could be the next major focus of federal fraud investigations.
Scope of Fraud Investigation in Minneapolis
Vance referenced a significant investigation initiated within the Department of Justice targeting taxpayer fraud, which has led to uncovering massive misuse of funds in Minneapolis and surrounding areas. He highlighted that the fraud has impacted public services by diverting resources from legitimate needs to fraudulent claims. The probe includes cases such as a COVID-19 relief fraud scandal involving the nonprofit Feeding Our Future, which authorities said resulted in roughly $250 million in fraudulent claims and charges against 78 individuals. Prosecutors have suggested the broader abuse linked to related programs may approach $9 billion.
Potential Expansion to California
Following his remarks on Minneapolis, Vance said federal investigators are closely examining fraud in California and working to define its extent. This aligns with January statements from President Donald Trump, who stated that a fraud investigation had begun in California and called the state “more corrupt than Minnesota.” California Governor Gavin Newsom defended the state’s anti-fraud efforts, noting that the California Franchise Tax Board has blocked over $125 billion in fraud since he took office. A spokesperson for Newsom emphasized that many contested programs are federally administered, not state-run.
Federal Task Forces and Government Response
Since January 2026, Vance spearheads an interagency task force within the Department of Justice focused on rooting out taxpayer fraud nationwide. Reports indicate he may soon lead a newly established task force created by executive order to continue these investigations. The administration frames this as part of a broader effort to address longstanding fraud against American taxpayers across multiple states.
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