TL;DR

The administration has moved thousands of DHS and ICE personnel into Minnesota citing fraud claims tied to a viral YouTube investigation, and senior White House officials say California and New York could be next. Officials and allies have signaled similar tactics — including withholding federal funds and new DOJ scrutiny — might be used in other Democratic-led states.

What happened

Since late December, the Department of Homeland Security has deployed thousands of immigration agents to Minnesota following fraud allegations that gained attention after a widely viewed YouTube video. The clip, produced by a right-wing creator, alleged a large fraud scheme involving Somali child care centers; local outlets have long covered related stories, and nearly 100 people have been charged with roughly 60 convictions reported. The federal surge has coincided with protests in Minneapolis and culminated in an ICE agent fatally shooting a resident on January 7. A senior White House official told WIRED the Minnesota operation is a model the administration plans to expand to states such as California and New York. In recent days, pro-Trump creators and administration figures traveled to California to pursue fraud claims, and the Centers for Medicare and Medicaid Services announced it would withhold about $300 million from California. The White House has also said it will create a Justice Department division to investigate state fraud allegations and has threatened to freeze federal payments to sanctuary jurisdictions.

Why it matters

  • Federal enforcement actions framed as fraud probes could increase immigration-related operations and oversight in large Democratic states.
  • Withholding federal funds and new DOJ scrutiny would directly affect state budgets and programs such as Medicaid.
  • Deployment of ICE and DHS personnel to local communities has raised concerns about civil unrest, public safety, and tensions with state and local leaders.
  • The approach may set a precedent for using fraud allegations as a basis for broader federal involvement in states governed by political opponents.

Key facts

  • DHS moved thousands of immigration agents into Minnesota in response to fraud claims after a viral YouTube video.
  • The video was produced by 23-year-old creator Nick Shirley and has been widely shared; local reporting shows nearly 100 charges and about 60 convictions related to the underlying matters.
  • An ICE agent shot and killed Renee Nicole Good in Minnesota on January 7, and protests have followed.
  • A senior White House official told WIRED the Minnesota operation could be replicated in California and New York.
  • The administration has threatened to freeze federal payments to sanctuary jurisdictions and said such freezes could begin as soon as February 1.
  • CMS administrator Mehmet Oz visited Los Angeles and announced withholding roughly $300 million from California, alleging misuse of federal Medicaid funds.
  • The White House announced plans to create a new Justice Department division to investigate state fraud allegations; Bloomberg reported a possible senior DOJ personnel change related to fraud enforcement.
  • ICE has been expanding recruitment and, according to reporting cited in the source, plans substantial online advertising to hire deportation officers.
  • Other states, including Maine, Colorado and Illinois, have seen increased federal scrutiny or freezes on funds in recent weeks.

What to watch next

  • Nick Shirley’s planned appearance before the House Judiciary Committee subcommittee on crime and federal government surveillance next week.
  • Whether DHS or ICE deployments will be expanded into California and New York (not confirmed in the source).
  • Implementation of any promised freezes on federal payments to sanctuary jurisdictions and the timeline for such actions.
  • Formation and staffing of the Justice Department division announced to investigate state fraud allegations, including any formal appointments (not confirmed in the source).

Quick glossary

  • Department of Homeland Security (DHS): A federal agency responsible for public security, including immigration enforcement, border protection, and disaster response.
  • Immigration and Customs Enforcement (ICE): A federal law enforcement agency under DHS that enforces immigration laws and investigates cross-border crime.
  • Medicaid: A joint federal-state program that provides health coverage to eligible low-income individuals and families.
  • Sanctuary jurisdiction: A state or locality that limits cooperation with federal immigration enforcement, often to protect undocumented residents.
  • Insurrection Act: A set of federal laws that allow the president to deploy federal troops within the United States under certain circumstances.

Reader FAQ

Has the administration sent agents into California and New York?
Not confirmed in the source. The White House signaled those states could be next, but deployments there are not reported in the source.

Why did federal agents go to Minnesota?
The administration cited fraud allegations amplified by a viral YouTube video; DHS moved thousands of agents into the state in response.

Have federal funds already been withheld from any states?
Yes. The source says Colorado and Illinois saw federal funds frozen, and CMS announced it would withhold about $300 million from California.

Will a new Justice Department unit investigate states for fraud?
The White House announced plans to establish a DOJ division focused on state fraud allegations; details and timing remain limited in the source.

Are the Somali communities targeted mostly citizens?
The source reports that populations such as Lewiston’s Somali community and Minnesota’s Somali community include many U.S. citizens or green card holders.

MAKENA KELLY LEAH FEIGER POLITICS JAN 15, 2026 1:22 PM Minnesota Is Just the Beginning. California and New York Are ‘Next’ The Trump administration appears to be planning to leverage…

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