Overview
- Vice President JD Vance announced a new Justice Department fraud division led by an assistant attorney general with initial focus on Minnesota before expanding nationwide.
- The administration has halted more than $10 billion in federal child care and social-services funding to Minnesota, California, New York, Illinois, and Colorado during the reviews.
- Federal officials report about 98 defendants charged and roughly 64 convictions in Minnesota-linked cases spanning child nutrition, Medicaid-related services, housing, and autism programs.
- Prosecutors have cited a potential fraud exposure as high as $9 billion across multiple programs in Minnesota, a developing estimate that state leaders dispute.
- House Oversight opened hearings on the scandal as the White House says nine federal agencies are engaged, with HHS tightening documentation, DHS conducting site inspections, and SBA suspending thousands of borrowers.