NEWSJUST IN:“More Corrupt Than Minnesota”: Trump Says Fraud Investigation Launched Into California

On Tuesday, U.S. President Donald J. Trump declared that a federal fraud investigation targeting the state of California — governed by Democrat Gavin Newsom — has begun, accusing the Golden State of being “more corrupt than Minnesota,” a reference to an ongoing fraud scandal in that Midwestern state.

Trump’s announcement came in a Truth Social post, where he wrote:

“California, under Governor Gavin Newscum, is more corrupt than Minnesota, if that’s possible??? The Fraud Investigation of California has begun.”

However, the details of the alleged investigation — including which federal agency is conducting it and the specific allegations or evidence — were not provided in that message.

Political Context

The remark ties into broader complaints by Trump and some GOP allies about fraud and misuse of federal funds in Democratic-led states.

His comparison to Minnesota refers to a high-profile case there involving alleged misuse of welfare and child-care funds that drew national scrutiny and contributed to political upheaval in that state.

At the same time, the U.S. Department of Health and Human Services is reported to be freezing billions of dollars in grants for social services — including child care — to California and other Democratic states amid concerns about program integrity.

California Response

Governor Gavin Newsom and his administration rejected Trump’s claims, with Newsom’s communications team labeling the president’s assertions as baseless and politically motivated.

They highlight California’s efforts to combat fraud, including tens of billions of dollars in blocked or recovered improper payments and arrests tied to fraud schemes.

Newsom himself took to social media with a scathing response, calling Trump “a deranged, habitual liar” and saying the fraud accusations were false.

What’s Actually Known

As of now:

Trump has not provided evidence of specific corrupt practices in California tied to the so-called investigation.

No named federal prosecutor, office, or agency has officially announced a formal probe into California at this time.

The announcement comes in the context of broader political conflict between the White House and Democratic governors and reflects ongoing debates over federal funding, fraud controls, and state-federal relations.

Broader Implications

Trump’s statements are likely to fuel further political polarization.

Supporters argue that heightened scrutiny of large states with significant federal funding is overdue, while critics say that broad claims without evidence can undermine trust in governance and unfairly target political opponents.

Whether any formal, evidence-based federal case will emerge from this announcement — and what it would specifically examine — remains unclear and will depend on follow-up from law enforcement agencies and federal investigators.