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Noem puts Newsom on notice, vows California probe after Minnesota fraud bust
By Max Bacall
Published January 07, 2026
Homeland Security Secretary Kristi Noem warned California Gov. Gavin Newsom that federal investigators are headed west after uncovering what she described as massive fraud in Minnesota public programs.
"We're going to come to you, Governor Newsom, and we're going to arrest every single individual that has ties to this kind of stealing of taxpayer dollars, and we will hold them accountable," Noem said on "Jesse Watters Primetime" on Tuesday.
"We'll bring them to justice."
MINNESOTA FRAUD CASES, EXPLAINED: HOW HUNDREDS OF MILLIONS ALLEGEDLY SLIPPED THROUGH STATE PROGRAMS
Secretary Kristi Noem said she intends to investigate fraud in California under Democratic Gov. Gavin Newsom. (Nelvin C. Cepeda/The San Diego Union-Tribune; Arnold Jerocki/Getty Images)
Noem's warning came one day after President Donald Trump called California "more corrupt than any place," including Minnesota. Newsom responded Monday, saying he welcomes "partnering" with the president on the issue.
"If he has some unique insight and information, I look forward to partnering with him. Can't stand fraud, can't stand waste and abuse," he told MS NOW.
Recent Homeland Security operations in Minnesota revealed widespread fraud tied to public assistance programs and saw "hundreds and hundreds" of arrests.
Noem said she thinks the scandal is "just the tip of the iceberg."
"It is leading us to networks all over the country and overseas, and we're gonna follow every single one of them."
The fraud, which Noem called "unprecedented," involved criminals allegedly siphoning money meant for Medicaid and developmental services to fund "luxury homes and vacations."
She accused Minnesota Gov. Tim Walz of ignoring warnings from state employees who raised concerns about fraudulent businesses and nonprofits collecting government funds, and said Democrats attempted to cover it up.
NEW YORK REPUBLICANS CALL FOR INDEPENDENT FRAUD INVESTIGATION FOLLOWING MINNESOTA REVELATIONS
Secretary Kristi Noem claims Democratic Minnesota Gov. Tim Walz ignored state employees raising red flags about fraud. (Christopher Mark Juhn/Anadolu via Getty Images)
The largest case, known as the "Feeding Our Future" scandal, centers on a Somali-linked nonprofit accused of exploiting federal child nutrition programs. More than 70 defendants have been charged to date.
Additional cases involve alleged fraud in Minnesota’s Housing Stabilization Services program, an early autism services program, and the Integrated Community Supports program, which provides assistance and training to people with disabilities living independently in the community.
The investigations are being led by the FBI, IRS Criminal Investigation, Homeland Security Investigations, the Department of Health and Human Services Office of Inspector General, and the U.S. Postal Inspection Service, according to the Justice Department.
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Noem said the Minnesota operations also led to arrests for violent crimes, including murder and sexual assault.
"We arrested a murderer, someone who was extorting money in other countries and also sexual assault perpetrators, individuals who were attacking children," Noem said.
Fox News Digital’s Charles Creitz contributed to this report.
https://www.foxnews.com/media/noem-puts-newsom-notice-vows-california-probe-after-minnesota-fraud-bust