Quick summary: White House Press Secretary Karoline Leavitt told Fox hosts that the administration is mobilizing multiple agencies to investigate extensive fraud in Minnesota’s childcare system under Governor Tim Walz, saying “people will be in handcuffs” as the Department of Justice and other agencies carry out raids, subpoenas, and on-the-ground inquiries while Congress prepares hearings.

‘People Will Be in Handcuffs’: Karoline Leavitt on WH Response to Minnesota Fraud Under Walz

White House Press Secretary Karoline Leavitt outlined an aggressive federal response to alleged childcare fraud tied to Minnesota programs overseen during Governor Tim Walz’s tenure. She made clear that the administration views the situation as a serious, systemic problem demanding immediate action.

Leavitt told Fox and Friends that the White House has “surged resources across the board to the state” after viral reporting and video evidence exposed empty daycare centers being paid with taxpayer money. She praised the role of independent journalists who helped bring the issue to light and said the federal government is now stepping in to follow up.

Leavitt stressed the administration’s priority: “This is a top priority for the administration,” the press secretary said. “The Department of Justice, as we speak, is continuing to execute search warrants and subpoenas. People will be in handcuffs as a result of the fraud that @GovTimWalz has allowed to occur for many, many years.”

The statement put a spotlight on coordinated action across agencies. Leavitt named the Department of Justice as actively executing warrants and subpoenas, and described homeland security teams conducting door-to-door inquiries at suspected fraud sites.

She added that the Homeland Security work includes enforcement steps within affected communities and ongoing deportations tied to fraud investigations. Those remarks underline the administration’s willingness to use immigration-related tools where they believe they intersect with welfare and benefits fraud.

Leavitt also said the administration is ready to pursue denaturalization where evidence supports it. “We’re also not afraid to use denaturalization,” Leavitt continued. “That’s a tool at the President and the Secretary of State’s disposal, and it’s one this administration has previously used before. Our entire administration is working around the clock to get to the bottom of it.”

Beyond law enforcement moves, Leavitt noted that cabinet agencies are taking programmatic steps to halt further misuse of funds. Health and Human Services has reportedly paused certain childcare payments to the state, and the Department of Labor has opened a probe into unemployment insurance, both meant to stop ongoing drain on federal dollars.

Those federal moves dovetail with congressional plans to press for answers. House Oversight leadership has scheduled hearings to examine the scope of alleged fraud, with initial sessions set to feature state lawmakers and later rounds inviting Governor Walz and Minnesota officials to testify.

Leavitt framed the effort as thorough and coordinated, with investigators, prosecutors, and administrative teams working in parallel to identify fraud, recover funds, and pursue criminal or civil penalties when warranted. Her remarks reflect a broader Republican emphasis on accountability, border enforcement, and protecting taxpayer resources.

The controversy has unfolded rapidly after video and field reporting drew national attention, forcing a response from both federal officials and congressional Republicans. That media-led exposure pushed the White House to prioritize inquiries and to signal that concrete enforcement steps would follow.

Republicans in Washington are already lining up oversight actions and public hearings, arguing that persistent failures at the state level require federal intervention. Leavitt’s comments make clear the administration’s posture: aggressive investigation, swift enforcement, and a readiness to use the full range of legal tools to confront alleged fraud.

As federal teams move into Minnesota, the dynamic will be closely watched by both policy wonks and voters who see this as a test of whether government will protect taxpayer funds. The combination of DOJ operations, DHS fieldwork, agency payment freezes, and congressional oversight creates multiple pressure points aimed at exposing wrongdoing and preventing further losses.

Expect the investigation to produce documents, subpoenas, and public testimony in the weeks ahead as the administration and House Republicans press for accountability. The federal response is meant to be visible and forceful, signaling consequences for officials and organizations that allowed fraud to occur.