Scott Bessent, U.S. Treasury Secretary, during an Economic Club of Minnesota event in Golden Valley, Minnesota, on Thursday, Jan. 8, 2026. (Ben Brewer/Bloomberg/Getty Images)
Bessent said recovering those funds could help finance Trump’s proposal to raise U.S. military spending to a cool $1.5 trillion.
"Yesterday, President Trump announced he was considering a $500 billion increase in defense spending," Bessent said. Asked whether the government could afford it, he replied: "Yes, if we can get the money back from fraud."
Pressed on whether the recovered funds would be substantial enough to meaningfully increase defense spending, Bessent said they would.
The revelation comes amid a sweeping fraud scandal in Minnesota that has drawn national attention and is estimated to involve at least $9 billion in misused funds. Minnesota Gov. Tim Walz, a Democrat, announced Monday that he will not seek re-election amid growing scrutiny over the state’s handling of the case.
ONE CHART LAYS BARE THE SPRAWLING FRAUD NETWORK MINNESOTA OFFICIALS MISSED
U.S. Secretary of Treasury Scott Bessent outlined a plan to help finance President Donald Trump's $1.5 trillion defense budget plan. (Anna Moneymaker/Getty Images)
Turning to Minnesota’s future, Bessent said the state had lost its way in recent years but could regain its standing under a different policy approach.
"For decades, Minnesota led the Midwest as a hub for culture, business and innovation," he said. "But it doesn’t have to be this way. President Trump’s hope, and ultimately his invitation, is that Minnesota becomes a North Star state again."
Amanda covers the intersection of business and politics for Fox News Digital.
https://www.foxnews.com/politics/bessent-says-minnesota-fraud-recovery-could-help-fund-trumps-1-5t-defense-plan