Treasury Secretary Says Massive Federal Fraud of Up to $600 Billion a Year is Draining US Budget

By Matt Vespa | Townhall

Treasury Secretary Scott Bessent recently visited Minnesota, where he spoke with citizen journalists, local politicians, and law enforcement officials about the ongoing fraud allegations that have engulfed the state. The amount of money stolen is reportedly in the billions, maybe even the hundreds of billions. That figure was corroborated by Mr. Bessent, who said that on average, around 10 percent of the budget, around $300-600 billion, is stolen every year. He made these points to reporter Christopher Rufo:

🚨 HOLY SH!T! Sec. Scott Bessent says as much as 10% of the U.S. budget is fraud — $300-600 BILLION in taxpayer dollars is stolen EVERY YEAR pic.twitter.com/lnDE86ytlr

— Chief Nerd (@TheChiefNerd) January 11, 2026

This story comes after YouTuber Nick Shirley posted a viral video where he exposed these reportedly fraudulent daycare centers, the most infamous being “The Learing Center.” There were supposed to be around 100 students enrolled here, and it was also receiving millions in government funds. And yet, Shirley found it empty, occupied by dudes watching television. Most of these companies are on paper-only, with many Somalis taking from the cookie jar. David Hoch, who helped Shirley in the reporting of this story, tracked medical transportation companies that have done nothing. The vehicles are still in the lots, collecting cash. The offices for these so-called companies are apartment complexes. No one has checked these operations.  

When Bessent came for this roundtable discussion, Gov. Tim Walz reportedly didn’t guarantee security at the state capitol, which led to Bessent delivering this haymaker: 

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