President Donald Trump on Wednesday night vowed that "a great new year" would include getting "to the bottom" of government fraud in Minnesota and other blue states.
Trump delivered the remarks while greeting guests at his New Year's Eve celebration at Mar-a-Lago, where he portrayed allegations of massive fraud in Minnesota as the latest example of what he says is rampant abuse of taxpayer dollars in Democrat-run states.
The president opened the party with comments about the Minnesota case, calling it "a giant scam" and promising his administration will recover stolen money.
"They stole $18 billion!" Trump told the crowd. "That's just what we're learning about. That's peanuts."
Trump said the problem is not isolated to Minnesota, claiming the alleged fraud is even worse in other Democrat-led states.
"And California is worse. Illinois' worse. And sadly New York is worse," he said. "So, we're going to get to the bottom of all of it. ... We're going to get that money back. It's all coming back."
Outside the ballroom earlier in the evening, while standing with first lady Melania Trump, who wore a silver dress, the president was asked whether he had a resolution for 2026.
"Peace on Earth," he said, adding, "We're back. We're strong."
The New York Post reported that a number of high-profile guests attended the black-tie celebration, including Israeli Prime Minister Benjamin Netanyahu, Trump's sons Donald Trump Jr. and Eric Trump, and multiple administration officials and allies.
Trump's comments came just hours after a spokesperson for the Department of Health and Human Services said the administration would freeze federal childcare funding nationwide until states can prove the money is being spent legitimately.
The move followed Deputy HHS Secretary Jim O'Neill's announcement that the administration had frozen childcare payments to Minnesota specifically — part of a crackdown the White House is framing as a fight against fraud, waste, and abuse.
The Minnesota issue has gained steam on the right following a viral video investigation by influencer Nick Shirley, who claimed to visit multiple childcare centers during a weekday and found them shut down or empty.
Shirley accused Gov. Tim Walz, a Democrat, of enabling a system in which taxpayer dollars allegedly funded nonoperational facilities, citing roughly $110 million in questionable spending.
Republicans argue the allegations underscore the need for federal oversight and why Washington must stop writing blank checks to states that refuse accountability.
Trump has long warned that bloated bureaucracy and lax enforcement invite corruption, especially in large blue-state systems tied to welfare and social programs.
As he rang in the new year, Trump framed the fraud fight as a central theme of his second term and promised supporters that the recovery effort will not stop in Minnesota.
"It was a giant scam," he said. "Other than that, we're going to have a great new year."
Charlie McCarthy ✉
Charlie McCarthy, a writer/editor at Newsmax, has nearly 40 years of experience covering news, sports, and politics.
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