UPDATE: Former President Donald Trump sparked controversy as he celebrated the New Year at his Mar-a-Lago estate on December 31, 2025, delivering a racially charged speech that centered around unverified allegations of fraud in Minnesota. This unexpected rant has drawn immediate backlash as he claimed that the state had lost $18 billion to what he termed a “giant scam.”
Trump’s remarks came during a festive gathering where he emphasized his belief that Minnesota’s fraud issues are part of a larger problem affecting other Democratic-led states, including California, Illinois, and New York. He stated, “Can you imagine, they stole $18 billion,” while referencing the “Somalia population” in a derogatory manner, igniting discussions about race and fraud.
The former president cited a figure of $18 billion but did not clarify its source. This claim has faced significant skepticism, as multiple reports indicate that the total amount related to federal fraud investigations in Minnesota is closer to hundreds of millions of dollars. The figure was previously mentioned by Joe Thompson, a Trump-appointed prosecutor, who claimed that substantial fraud had occurred through various social programs since 2018.
“We’re going to get to the bottom of all of it,” Trump said, suggesting a renewed effort to reclaim lost funds.
Trump’s New Year’s Eve speech diverged from the traditional atmosphere of celebration, resulting in a tone that many found inappropriate for the occasion. In an attempt to pivot to a more positive note, he added, “Other than that, we’re going to have a great new year,” indicating that he views the fraud investigation as a path to a more prosperous future.
This public display follows a growing storm of allegations regarding fraud in child care and social service programs in Minnesota, particularly within the Somali American community. As tensions rise, the White House has been compelled to clarify its stance on federal funding for child care amid these allegations. Reports indicate that the Department of Health and Human Services (HHS) initially considered freezing funding but later specified that adjustments to documentation and audit requirements would be implemented instead.
As Trump heads into an election year with declining approval ratings and increasing concerns about the economy, his comments at the New Year’s celebration have the potential to resonate with his base while alienating other voters. Observers are closely monitoring the political fallout from his statements and the broader implications for the upcoming midterms.
With the political landscape shifting rapidly, Trump’s New Year’s Eve remarks are a reminder of his ongoing influence in the Republican Party, as well as the divisive rhetoric that continues to shape American political discourse. As this story develops, the Daily Beast has reached out to the White House for comments regarding Trump’s allegations and the status of federal funding in Minnesota.
Stay tuned for more updates on this evolving story as it impacts not just local politics but also the national stage.