Treasury Sec. Bessent says fraud recovery in Minnesota could fund Trump’s defense plan

WASHINGTON (TNND) — Treasury Secretary Scott Bessent said that if the federal government could recover fraud from Minnesota, it could be used to fund President Donald Trump’s defense plan.

“Minnesota, unfortunately, is ground zero for what may be one of the most egregious welfare scams in our nation’s history to date,” Bessent said at the Minnesota Economic Club.

He said that recovering the funds could help finance Trump’s proposal to increase spending for the U.S. military to $1.5 trillion.

“Yesterday, President Trump announced he was considering a $500 billion increase in defense spending,” he said, according to Fox News.

He was asked if the government could afford this to which he responded, “Yes, if we can get the money back from fraud.”

The federal government is currently probing into alleged fraud in Minnesota, following a report from independent reporter Nick Shirley.

Last month, Shirley went to different daycare centers around Minneapolis and showed that many seemed vacant.

He alleged that taxpayer money was funding the centers, meaning there was likely tons of fraud.

Multiple federal agents are currently in Minneapolis, Minnesota, for immigration crackdown.

Department of Homeland Security Secretary Kristi Noem announced this week that more agents would be sent to the state.