White House Task Force Outlines ‘State-By-State’ Crackdown On Fraud

Thanks to the Trump administration and the work of enterprising independent journalists, the nation has gotten a glimpse into the fraud deeply embedded in Minnesota, particularly across the Somali immigrant population.

Now, federal investigators are preparing to expose even more fraud across the U.S., as Small Business Administration head Kelly Loeffler, who also serves on a new White House task force, explained in an interview with the Daily Caller:

Loeffler told the DCNF that she believes her “first duty” as SBA administrator is to “ensure that we are good stewards of the American taxpayer dollars.”

“I mean, here we are amid tax season, and Americans are being asked to send their tax bills,” Loeffler told the DCNF. “And so what Americans want to know is that when they submit a payment to the IRS [Internal Revenue Service], is that money is going to be used, appropriately within the federal government.”

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“Well, that has not happened for too long,” she continued. “And thanks to President [Donald] Trump’s leadership, he’s commissioned the creation of the fraud task force, of which I’m a member [alongside] 10 cabinet members, along with the leadership of Vice President [JD] Vance. We convened our task force, and that’s a great forum for us to be able to talk about the fraud that we have found.”

She also claimed that the Trump administration is planning on “going state by state” to identify and combat fraud.

“We have found $200 billion in the aggregate from just COVID-era fraud,” Loeffler stated. “And you think about the scale of that on a state by state basis, starting with California. So far, we’ve said that we found 111,000 residents of California defrauded COVID-era, pandemic relief. So what that means is they will no longer be eligible for SBA services.”

Exposing fraud and waste has been a key priority in President Trump’s second term, beginning with the creation of DOGE:

On the important metrics, which is NOT the deficit, DOGE was wildly successful. If you thought you were cutting 20% of spending you were a naive idiot. I never believed that would happen. But DOGE systematically identified billions in grants to the leftist NGO complex. Most of… https://t.co/R8qtLz4FCf

— Inez Stepman ⚪️🔴⚪️ (@InezFeltscher) April 10, 2026

Her entire party held rallies to protest DOGE & filed lawsuits to prevent DOGE from investigating agencies where the fraud was originating. Now she has the audacity to pretend to give a shit about the results when Democrats fought them tooth & nail instead of working with them. https://t.co/xZQj7sOH9N pic.twitter.com/rif3EAoyTC

— Tiffanie Tx (@tiffanie_tx) April 12, 2026

Then, the rampant fraud in Minnesota became a nationwide symbol of systemic problems across the nation:

HOLY F'CK 🚨

Look at what Nick Shirley found

-$19.8 million Adult Daycare in CA
-No adults
-No info how to enroll grandma
-Phone number to nowhere
-New BMW parked outside

Raise your hand ✋️ if you wanna see people in Govt to start going to jail for this, including Newsom pic.twitter.com/PRGNb45b1K

— @Chicago1Ray 🇺🇸 (@Chicago1Ray) April 9, 2026

Even CBS News reported on the findings of Nick Shirley and others, including in an article a few weeks ago that listed an array of fraud-plagued programs in the state:

In the wake of the video, the Trump administration announced it is pausing federal funding to child care in Minnesota, with President Trump calling Minnesota a “hub of fraudulent money laundering activity.” The U.S. Department of Health and Human Services also announced sweeping changes to how all states must submit claims for Medicaid-supported daycares, including requiring “a justification and a receipt or photo evidence before we send money to a state.”

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Even before the video spread far across the internet, however, scandal plagued Minnesota. In 2021, federal law enforcement first probed a series of multimillion dollar fraud schemes. Those fraud schemes have led to federal charges against 92 people with 62 convicted — and counting.

President Trump and other Republican lawmakers have focused attention on the state’s large Somali community, as most of the fraud defendants are of Somali descent, drawing stiff criticism from local officials, including Walz, who denounced Mr. Trump’s criticism as “vile, racist lies and slander towards our fellow Minnesotans.”

Walz, meanwhile, has faced intense scrutiny from both inside and outside Minnesota over his administration’s handling of the crisis. The governor has acknowledged in recent weeks that the fraud problem could stretch into the billions, but disputed the $9 billion figure cited by prosecutors.

Here’s what Loeffler had to say at a hearing last year about tackling fraud:

Do you agree?