MINNEAPOLIS — Treasury Secretary Scott Bessent slammed Minnesota leaders during a visit to the Twin Cities on Thursday, calling the state “ground zero for what may be one of the most egregious welfare scams in our nation’s history to date.”

His remarks at an Economic Club of Minnesota event in Golden Valley underlined the Trump administration’s focus on Minnesota and its unfolding fraud crisis. They also came amid escalating tensions the day after a woman was shot and killed during an encounter with federal immigration enforcement in Minneapolis.

Bessent didn’t acknowledge the death of 37-year-old Renee Nicole Good or the resulting protests in Minnesota and across the country. But he cited “the damaging impacts of illegal immigration” among issues he said beleaguer Minnesotans and other Americans, along with “a glaring absence of political leadership” from President Joe Biden’s administration, “rampant fraud” and unchecked government.

“Under Gov. Tim Walz, billions of dollars intended for families in need, housing for disabled, sick seniors and services for children were diverted to benefit fraudsters,” Bessent said.

“I’m here this week to signal the U.S. Treasury’s unwavering commitment to recovering stolen funds, prosecuting fraudulent criminals, preventing scandals like this from ever happening again and investigating similar schemes, state by state.”

In his prepared remarks and during a wide-ranging conversation with journalist Michelle Caruso-Cabrera, Bessent also touted the Trump administration’s economic policy, pointing to recent growth of the nation’s domestic product and saying, “the stage is set for robust, non-inflationary growth in 2026.”

“President Trump has charted the course for economic renewal,” Bessent said. “Now, it’s up to individual states to follow. Minnesota could lead the way.”

Early in his remarks, he said “President Trump’s hope, and ultimately his invitation, is that Minnesota becomes the North Star State again.”

After decades as a regional culture, business and innovation hub, he said, Minnesota leadership “has knocked this great state and its people off course.”

Bessent, who also serves as acting IRS commissioner, described “failed experiments in big government,” regulation and a relatively high corporate tax rate that he said have hurt Minnesota’s job creators and led to net outbound migration.

In fact, Bessent is among those who’ve taken their business elsewhere.

When Caruso-Cabrera asked about restaurants Bessent previously owned in the state, he quipped, “I’m glad we got out,” and the crowd laughed.

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