VP Vance says Tim Walz should resign' over massive Minnesota welfare fraud scandal investigation

Vice President JD Vance says Minnesota's fraud scandal reflects a larger scheme and that the Trump administration believes there is nationwide fraud perpetrated by illegal aliens and others taking advantage of the American welfare system.

"Anybody who is involved is going to get prosecuted," Vance vowed on "Jesse Watters Primetime" Wednesday.

The vice president’s comments come as the Trump administration is pausing over $10 billion to five Democratic-run states, including California, over concerns that money was fraudulently given to noncitizens.

Vance addressed whether he thinks Minnesota Gov. Tim Walz, who announced Monday he would not seek re-election, should resign over his state’s fraud scandal, which is estimated to be at least $9 billion.

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"I think Tim Walz should resign," Vance told Fox News host Jesse Watters. "I almost feel bad for the guy, except for the fact that he should’ve seen this."

Minnesota’s scandal is a "massive failure of government," Vance said.

"It’s not just that people are getting welfare who shouldn’t get welfare…it’s bigger than that," Vance discussed. "It’s that people take this money and create whole businesses around siphoning money from the American taxpayer. "

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The vice president predicted similar cases of fraud will be found in other places around the country.

Democratic Minnesota Governor Tim Walz speaks to reporters after he announced that he would not seek reelection, at the Minnesota State Capitol in St. Paul, Minnesota, U.S. January 5, 2026.  (Reuters/Tim Evans)

He went on to accuse California of being "glaring and obvious about the fact they are giving welfare benefits to illegal aliens," adding the Trump administration is sending investigators to "a lot of places."

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In a statement to Fox News Digital, Newsom's office said the California Department of Social Services (CDSS) administers childcare and other essential programs that allow working families to "afford safe, reliable care so parents can go to work, support their families, and contribute to their communities."

Department of Homeland Security Secretary Kristi Noem said she intended to investigate fraud in California amid an ongoing scandal in Minnesota. (Nelvin C. Cepeda / The San Diego Union-Tribune; Arnold Jerocki/Getty Images)

"These funds are not optional — they are critical lifelines for working families across California," the office said. "The State of California aggressively investigates and prosecutes fraud. Using unsupported allegations to withhold child care funding only from states that didn’t vote for the President doesn’t stop fraud — it harms struggling moms and dads President Trump claims to be fighting for."