Sec. Bessent Calls Minnesota Ground Zero for the Biggest Welfare Scam in History [WATCH]

Scott Bessent said efforts to expose and eliminate fraud, waste, and abuse across federal programs are already underway and could result in hundreds of billions of dollars being recovered and redirected to legitimate organizations serving vulnerable Americans.

Speaking during remarks in Minneapolis, Bessent said he was encouraged by what he described as growing momentum to clean up misuse of taxpayer funds, particularly in areas affecting children and seniors.

“I want to echo your statements, because as I spend time here, it is good to be back in Minnesota, Minneapolis,” Bessent said.

“I am hopeful, too, because even though it is cold outside, Sunshine is the best antiseptic, and we are going to clean this out. We are going to stop it.”

Bessent said the goal of the effort is not only accountability but ensuring that taxpayer dollars are returned to organizations that legitimately serve the public.

“We are going to make recoveries and the as Jennifer said, we are going to get the money flowing back to people like her organization who help the children seniors,” he said.

He described Minnesota as a starting point for a broader national effort, saying lessons learned there could be applied across the country.

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“So I am very hopeful that we will right the ship and that we will emanate out from Minnesota into the other 49 states and ferret out waste, fraud and abuse,” Bessent said.

Bessent cited estimates from the General Accounting Office, commonly known as the GAO, to illustrate the scale of the problem.

According to those estimates, fraud represents a significant portion of overall federal spending.

“The GAO, the General Accounting Office, believes that there is between 300 and 600 billion of fraud that occurs via the US government every year,” Bessent said.

“Around 10% of our spending in between one and 2% of GDP.”

He said those figures show the need for systematic internal reviews rather than piecemeal reforms, arguing that even modest improvements could yield massive savings for taxpayers.

Bessent also referenced comments made by President Donald Trump regarding a potential increase in defense spending, suggesting that fiscal discipline and national security goals do not have to be mutually exclusive.

“Last week, President Trump indicated that he would like to raise the defense budget by $500 billion,” Bessent said.

According to Bessent, that proposal presents an opportunity to pair national defense priorities with internal accountability.

“We could do that and make our nation most more externally safe by having an internal audit of where this fraud and abuse is coming from,” he said.

Bessent suggested that a comprehensive audit could help identify systemic weaknesses that allow fraud to persist, while also restoring confidence in government programs designed to help those in need.

Throughout his remarks, Bessent emphasized optimism that sustained attention and transparency would lead to tangible results, crediting those already involved in uncovering misuse of public funds.

“And I want to thank you for all your work you’ve done,” he said.

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