Vice President JD Vance warned Wednesday that Minnesota’s massive fraud scandal is not an isolated failure but part of a broader, nationwide scheme exploiting America’s welfare system — a problem the Trump administration says it is now aggressively moving to confront.

Speaking on “Jesse Watters Primetime,” Vance said the administration believes a large-scale fraud ring involving illegal aliens and other bad actors has been siphoning billions of taxpayer dollars through government assistance programs.

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

The vice president’s remarks come as the Trump administration announced it is pausing more than $10 billion in federal funding to five Democrat-run states, including California, amid concerns that taxpayer money was improperly distributed to noncitizens and fraudulent operations. Administration officials say the funding pause is meant to prevent further abuse while investigations are underway.

Minnesota at the Center of the Storm

At the heart of the controversy is Minnesota, where investigators estimate that fraud tied to state-administered programs could total at least $9 billion, making it one of the largest public assistance scandals in U.S. history. The scandal involves complex networks that allegedly used shell organizations, fake documentation, and weak oversight to drain funds intended for vulnerable Americans.

Vance did not mince words when asked whether Minnesota Gov. Tim Walz — who announced Monday that he will not seek re-election — should step down immediately.

“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.”

Calling the situation a “massive failure of government,” Vance said the problem goes far beyond individual cases of improper benefits.

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

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Calls for Accountability Grow

Vance’s comments echo calls from multiple Republican lawmakers and state officials who have argued that Walz’s administration ignored repeated warning signs, failed to enforce basic safeguards, and allowed fraud to spiral out of control. Several have publicly demanded Walz resign immediately, saying Minnesotans deserve accountability and transparency after years of mismanagement.

The vice president also warned that Minnesota may only be the beginning.

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

California Under Scrutiny

Vance specifically pointed to California, accusing state leaders of openly extending welfare benefits to illegal aliens and daring the federal government to intervene.

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.”

In response, Gov. Gavin Newsom’s office pushed back, defending the state’s programs and criticizing the administration’s decision to freeze funding.

In a statement to Fox News Digital, Newsom’s office said the California Department of Social Services 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.”

“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 childcare 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.”

A Broader Reckoning

Trump administration officials argue that the funding pauses and investigations are long overdue and necessary to protect American taxpayers, restore integrity to public assistance programs, and ensure aid goes to citizens and lawful residents who truly need it.