JD Vance claims $7B fraud uncovered in California: 'This is much bigger than Minnesota'

MINNEAPOLIS, MINNESOTA: Vice President JD Vance claimed during an interview with Newsmax on Thursday, January 22, that fraud uncovered in California is far more extensive than similar cases in Minnesota, alleging the Golden State is grappling with a staggering $7 billion problem uncovered by federal officials.

Speaking during an interview while visiting Minneapolis amid ongoing protests tied to immigration enforcement, Vance said the scope of fraud in California had stunned even top officials in DC.

JD Vance says California fraud far exceeds Minnesota

“I think we have a fraud problem that is much worse in California than it is in Minnesota,” Vance said, citing information shared with him by the head of the US Small Business Administration.

“This is unfortunately a problem that is much bigger than Minnesota,” the vice president added, underscoring that the figures coming out of California dwarf the fraud probe currently unfolding in the Midwest.

His remarks come as federal agencies intensify efforts to track alleged misuse of public funds tied to refugee programs, small business relief, and child care assistance.

Minnesota fraud probe sparks federal scrutiny and funding pause

Earlier this month, the Department of Homeland Security launched a sweeping fraud investigation in Minnesota, focusing on refugee applications and reexamining thousands of cases. Officials have referred suspected violations to Immigration and Customs Enforcement as part of the probe.

The Trump administration has also paused federal child care funding to Minnesota, blaming alleged fraud in daycare programs. New documentation requirements, including attendance records and detailed receipts, must now be submitted before payments are released to any state, according to CBS.

Vance acknowledged the seriousness of the Minnesota investigation but insisted it pales in comparison to what federal officials are now uncovering in California.

JD Vance links immigration resistance to Democratic-led states

Beyond fraud, Vance argued that resistance to immigration enforcement is largely concentrated in Democratic-led states and cities, describing it as a growing confrontation with the federal government.

“Some Democratic-led states are engaged in a small-scale civil war with the federal government over immigration,” he said.

Vice President JD Vance speaks at Metallus, a metal products manufacturer, on July 28, 2025, in Canton, Ohio (Getty Images)

Vance contrasted blue states with red ones, arguing that enforcement efforts face far less resistance elsewhere.

“You look at red states like Texas, but blue cities like Austin. You do not see this level of chaos over the enforcement of immigration laws,” he said.

His comments come as California Governor Gavin Newsom and other Democratic leaders have ramped up opposition to ICE activity in their states.

Minneapolis protests frame JD Vance visit amid ICE backlash

Vance’s interview took place during his visit to Minneapolis following weeks of protests over ICE enforcement. Thousands of demonstrators marched through the city chanting “ICE out,” carrying signs demanding that federal agents leave Minnesota, even as temperatures plunged below zero.

Vance said he traveled to the state in part to calm tensions, placing blame for the unrest on extremist elements.

“We’re doing everything that we can to lower the temperature,” he said, urging Minnesota leaders to “meet us halfway.”

He also criticized what he described as misinformation fueling public anger toward federal agents.

JD Vance addresses viral ICE arrest images and rising tensions

The vice president also weighed in on backlash over widely shared images apparently showing ICE agents detaining a five-year-old boy. Vance explained that agents were attempting to arrest the child’s father, who allegedly tried to flee.

He pointed to incidents involving media figures and activists, including Don Lemon and protesters storming a church in Minnesota, as well as the killing of Renee Nicole Goode, to argue that a small but vocal group is escalating tensions.

“A small band of very far-left people” is trying to make ICE “the ultimate enemy,” Vance said, accusing them of encouraging assaults on officers and disruptions of religious spaces. 

“It’s absurd,” he added. “It’s added a lot of chaos.”