JD Vance says California is next target for fraud probe after $19B found
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ROCKY MOUNT, N.C. — Vice Mayor J.D. Vance hinted that California could be targeted following major fraud investigations, declaring that fraud discovered in the Minneapolis area since the administration began investigating in the Twin Cities is “probably at least $19 billion.”
In January, Vance announced an interagency task force within the Justice Department specifically targeting fraud, and reports suggest the vice president will soon lead a new task force created by Trump’s executive order.
“We know there’s a lot of fraud in California, and we’re trying to understand exactly what that looks like and what we’re doing under Trump,” Vance said in response to a question from Fox News Digital.
He took questions Friday afternoon at the Power House event center following a speech focused on the economy, public safety and election integrity.
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“And the President has actually empowered us to do this; to provide the first national look at how the American people have been defrauded over many, many years,” Vance said. added Vance.
Vice President J.D. Vance suggested Friday that California could be the next focus of major federal fraud investigations, while claiming that fraud uncovered in the Minneapolis area could total at least $19 billion. (Kent Nishimura/Getty Images)
In January, President Donald Trump criticized California, announcing that a “fraud investigation in California has begun” and saying the state was “more corrupt than Minnesota.”
Democratic California Gov. Gavin Newsom defended the Golden State’s fraud protections in February, saying the California Franchise Tax Board has prevented billions of dollars in fraud in recent years.
“In the real adult-run world, Gavin Newsom is cleaning house,” a spokesperson for Newsom told Fox News Digital. “Since taking office, he has foiled more than $125 billion in fraud, arrested criminal parasites exfiltrating taxpayers, and protected taxpayers from the kind of fraud artists Trump celebrates and supports with excuses and pardons.
“Gavin Newsom runs a state,” the spokesperson added. “Donald Trump is running his mouth. We have shown over and over again that the programs they are trying to tout are programs run by the federal government, not the state. We suggest they get their house in order.”
On Friday, Vance highlighted the fraud that occurred in Minnesota, telling Fox News Digital and reporters that taxpayer dollars are footing the bill for the illegal misuse of funds.
Democratic Gov. Gavin Newsom defended the state’s safeguards and said the California tax agency has prevented billions of dollars in fraud in recent years. (AP Photo/Jeff Chiu, File)
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“You asked about Minnesota, [and] We think there’s at least $19 billion worth of fraud going on in the surrounding areas of Minneapolis,” Vance explained. “Let me give you an example of this, because it’s not just the American people who are being defrauded. It’s not just your tax dollars that are stolen from your wallet and given to scammers.
“The fact that the services we are supposed to provide to people in need are not being delivered because they are falling into the hands of fraudsters.”
Federal investigators in Minnesota opened an investigation into the nonprofit Feeding Our Future in 2022. Prosecutors later determined that organization was a key player in what became one of the largest COVID-19 benefit fraud cases uncovered.
Homeland Security Investigations agents are conducting a fraud investigation in Minneapolis after a video was released over the weekend of alleged daycare fraud. (Department of Homeland Security)
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As the investigation progressed, authorities said they uncovered nearly $250 million in alleged fraud, resulting in 78 people being charged in the alleged scheme.
Prosecutors also suggested that broader fraud linked to related programs could total as much as $9 billion.
Independent journalist Nick Shirley took to the streets of Minneapolis in late December 2025 and discovered an establishment claiming to be a daycare of some sort, with the word “learning” misspelled on the front door of the business.
The Center for Quality Learning in Minnesota has been revealed to be at the center of the state’s alleged child care fraud scandal. (Madelin Fuerste/Fox News)
In his response to a Fox News Digital reporter’s question on Friday, Vance mocked the organization, which has since closed its doors.
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“When a Somali con artist comes to the United States illegally and starts a school to collect taxes, and the name of the school is Center for Quality Learning, but when they sign up, they take out the ‘n’. So it says ‘Center for Quality Learning,'” Vance explained.
“I don’t know about you, but I don’t want to send my kids to a school where they can’t pronounce the word ‘learn.’ This group was taking millions of dollars from American taxpayers.”
Preston Mizell is a writer for Fox News. Story tips can be sent to Preston.Mizell@fox.com and X @MizellPreston.
