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MINNEAPOLIS — Federal Homeland Security officials were conducting a fraud investigation on Monday in Minneapolis, Department of Homeland Security Secretary Kristi Noem said.

The action comes after years of investigation that began with the $300 million scheme at the nonprofit Feeding Our Future, for which 57 defendants in Minnesota have been convicted. Prosecutors said the organization was at the center of the country’s largest COVID-19-related fraud scam, when defendants exploited a state-run, federally funded program intended to provide food for children.

A federal prosecutor alleged earlier in December that half or more of the roughly $18 billion in federal funds that supported 14 programs in Minnesota since 2018 may have been stolen.

Minnesota Gov. Tim Walz said then that fraud will not be tolerated and that his administration “will continue to work with federal partners to ensure fraud is stopped and fraudsters are caught.”

Noem on Monday posted a video on the social platform X showing DHS officers going into an unidentified business and questioning the person working behind the counter. Noem said that officers were “conducting a massive investigation on childcare and other rampant fraud.”

“The American people deserve answers on how their taxpayer money is being used and ARRESTS when abuse is found,” U.S. Immigration and Custom Enforcement posted.

The action comes a day after FBI Director Kash Patel said on X that the agency had “surged personnel and investigative resources to Minnesota to dismantle large-scale fraud schemes exploiting federal programs.”

Patel said that previous fraud arrests in Minnesota were “just the tip of a very large iceberg.”

President Donald Trump has criticized Walz’s administration over the fraud cases to date.

In recent weeks, tensions have been high between state and federal enforcement in the area as the Trump administration’s immigration crackdown focused on the Somali community in the Minneapolis-St. Paul area, which is the largest in the country.

Among those running schemes to get funds for child nutrition, housing services, and autism programs, 82 of the 92 defendants are Somali Americans, according to the U.S. Attorney’s Office for Minnesota.

Walz spokesperson Claire Lancaster said that the governor has worked for years to “crack down on fraud” and was seeking more authority from the Legislature to take aggressive action. Walz has supported criminal prosecutions and taken a number of other steps, including strengthening oversight and hiring an outside firm to audit payments to high-risk programs, Lancaster said.

States will share $10 billion for rural healthcare next year in a program that aims to offset the Trump administration’s massive budget cuts to rural hospitals, federal officials announced Monday.

But while every state applied for money from the Rural Health Transformation Program, it won’t be distributed equally. And critics worry that the funding might be pulled back if a state’s policies don’t match up with the administration’s.

Officials said the average award for 2026 is $200 million, and the fund puts a total of $50 billion into rural health programs over five years. States propose how to spend their awards, and the Centers for Medicare and Medicaid Services assigns project officers to support each state, said agency administrator Mehmet Oz.

“This fund was crafted as part of the One Big Beautiful Bill, signed only six months ago now into law, in order to push states to be creative,” Oz said in a call with reporters Monday.

Under the program, half of the money is equally distributed to each state. The other half is allocated based on a formula developed by CMS that considered rural population size, the financial health of a state’s medical facilities, and health outcomes for a state’s population.

The formula also ties $12 billion of the five-year funding to whether states are implementing health policies prioritized by the Trump administration’s Make America Healthy Again initiative. Examples include requiring nutrition education for healthcare providers, having schools participate in the Presidential Fitness Test, or banning the use of SNAP benefits for so-called junk foods, Oz said.

Several Republican-led states — including Arkansas, Iowa, Louisiana, Nebraska, Oklahoma, and Texas — have already adopted rules banning the purchase of foods like candy and soda with SNAP benefits.

The money that the states get will be recalculated annually, Oz said, allowing the administration to claw back funds if, for example, state leaders don’t pass promised policies. Oz said the clawbacks are not punishments, but leverage governors can use to push policies by pointing to the potential loss of millions.

“I’ve already heard governors express that sentiment that this is not a threat, that this is actually an empowering element of the One Big Beautiful Bill,” he said.

Carrie Cochran-McClain, chief policy officer with the National Rural Health Association, said she’s heard from a number of Democratic-led states that refused to include such restrictions on SNAP benefits even though it could hurt their chance to get more money from the fund.

“It’s not where their state leadership is,” she said.

Experts say fund is inadequate in face of other cuts

Oz and other federal officials have touted the program as a 50% increase in Medicaid investments in rural healthcare. Rep. Don Bacon, a Republican from Nebraska who has been critical of many of the administration’s policies but voted for the budget bill that slashed Medicaid, pointed to the fund when recently questioned about how the cuts would hurt rural hospitals.

“That’s why we added a $50 billion rural hospital fund, to help any hospital that’s struggling,” Bacon said. “This money is meant to keep hospitals afloat.”

But experts say it won’t nearly offset the losses that struggling rural hospitals will face from the federal spending law’s $1.2 trillion cut from the federal budget over the next decade, primarily from Medicaid. Millions of people are also expected to lose Medicaid benefits.

Estimates suggest rural hospitals could lose around $137 billion over the next decade because of the budget measure. As many as 300 rural hospitals were at risk for closure because of the GOP’s spending package, according to an analysis by the Cecil G. Sheps Center for Health Services Research at the University of North Carolina at Chapel Hill.

“When you put that up against the $50 billion for the Rural Health Transformation Fund, you know — that math does not add up,” Cochran-McClain said.

She also said there’s no guarantee that the funding will go to rural hospitals in need. For example, she noted, one state’s application included a proposal for healthier, locally sourced school lunch options in rural areas.

And even though innovation is a goal of the program, Cochran-McClain said it’s tough for rural hospitals to innovate when they were struggling to break even before Congress’ Medicaid cuts.

“We talk to rural providers every day that say, ‘I would really love to do x, y, z, but I’m concerned about, you know, meeting payroll at the end of the month,’” she said. “So when you’re in that kind of crisis mode, it is, I would argue, almost impossible to do true innovation.”

PALM BEACH, Fla. — President Donald Trump warned Iran on Monday that the U.S. could carry out further military strikes if the country attempts to reconstitute its nuclear program as he held wide-ranging talks with Israeli Prime Minister Benjamin Netanyahu at his home in Florida.

Trump had previously insisted that Tehran’s nuclear capabilities were “completely and fully obliterated” by U.S. strikes on key nuclear enrichment sites in June. But with Netanyahu by his side, Trump raised the possibility that suspected activity could be taking place outside those sites. Israeli officials, meanwhile, have been quoted in local media expressing concern about Iran rebuilding its supply of long-range missiles capable of striking Israel.

“Now I hear that Iran is trying to build up again,” Trump told reporters gathered at his Mar-a-Lago estate. “And if they are, we’re going to have to knock them down. We’ll knock them down. We’ll knock the hell out of them. But hopefully that’s not happening.”

Trump’s warning to Iran comes as his administration has committed significant resources to targeting drug trafficking in South America and the president looks to create fresh momentum for the U.S.-brokered Israel-Hamas ceasefire. The Gaza deal is in danger of stalling before reaching its complicated second phase that would involve naming an international governing body and rebuilding the devastated Palestinian territory.

At a news conference with Netanyahu after their meeting, Trump suggested that he could order another U.S. strike.

“If it’s confirmed, they know the consequences, and the consequences will be very powerful, maybe more powerful than the last time,” Trump said.

Iran has insisted that it is no longer enriching uranium at any site in the country, trying to signal to the West that it remains open to potential negotiations over its atomic program. The two leaders discussed the possibility of taking new military action against Tehran just months after June’s 12-day war.

The Iranian mission to the United Nations did not immediately respond to a request for comment on Trump’s warning.

Gaza ceasefire progress has slowed

Trump, with Netanyahu by his side, said he wants to get to the second phase of the Gaza deal “as quickly as we can.”

“But there has to be a disarming of Hamas,” Trump added.

The ceasefire between Israel and Hamas that Trump championed has mostly held, but progress has slowed recently. Both sides accuse each other of violations, and divisions have emerged among the U.S., Israel, and Arab countries about the path forward.

The truce’s first phase began in October, days after the two-year anniversary of the initial Hamas-led attack on Israel that killed about 1,200 people. All but one of the 251 hostages taken then have been released, alive or dead.

The Israeli leader, who also met separately with Secretary of State Marco Rubio and Defense Secretary Pete Hegseth, has signaled he is in no rush to move forward with the next phase as long as the remains of Ran Gvili are still in Gaza.

Gvili’s parents met with Netanyahu as well as Rubio, U.S. envoy Steve Witkoff, and the president’s son-in-law, Jared Kushner, in Florida on Monday.

“They’re waiting for their son to come home,” Trump said of the family of the young police officer known affectionately as “Rani.”

Next phase is complex

The path to implementing Trump’s peace plan is certainly complicated.

If successful, the second phase would see the rebuilding of a demilitarized Gaza under international supervision by a group chaired by Trump and known as the Board of Peace. The Palestinians would form a “technocratic, apolitical” committee to run daily affairs in Gaza, under Board of Peace supervision.

It further calls for normalized relations between Israel and the Arab world and a possible pathway to Palestinian independence. Then there are thorny logistical and humanitarian questions, including rebuilding war-ravaged Gaza, disarming Hamas, and creating a security apparatus called the International Stabilization Force.

Much remains unsettled

Two main challenges have complicated moving to the second phase, according to an official who was briefed on those meetings. Israeli officials have been taking a lot of time to vet and approve members of the Palestinian technocratic committee from a list given to them by the mediators, and Israel continues its military strikes.

Trump’s plan also calls for the stabilization force, proposed as a multinational body, to maintain security. But it, too, has yet to be formed. Whether details will be forthcoming after Monday’s meeting is unclear.

A Western diplomat said there is a “huge gulf” between the U.S.-Israeli understanding of the force’s mandate and that of other major countries in the region, as well as European governments.

All spoke on the condition of anonymity to provide details that haven’t been made public.

The U.S. and Israel want the force to have a “commanding role” in security duties, including disarming Hamas and other militant groups. But countries being courted to contribute troops fear that mandate will make it an “occupation force,” the diplomat said.

Hamas has said it is ready to discuss “freezing or storing” its arsenal of weapons but insists it has a right to armed resistance as long as Israel occupies Palestinian territory. One U.S. official said a potential plan might be to offer cash incentives in exchange for weapons, echoing a “buyback” program Witkoff has previously floated.

Trump makes case once again for Netanyahu pardon

The two leaders, who have a long and close relationship, heaped praise on each other. Trump also tweaked the Israeli leader, who at moments during the war has raised Trump’s ire, for being “very difficult on occasion.”

Netanyahu said Trump during the lunch was formally told that his country’s education ministry will award him the Israel Prize, breaking the long-held convention of bestowing the honor on an Israeli citizen or resident.

“President Trump has broken so many conventions to the surprise of people,” Netanyahu said. He added, “So we decided to break a convention, too, or create a new one.”

Trump also renewed his call on Israeli President Isaac Herzog to grant Netanyahu, who is in the midst of a corruption trial, a pardon.

Netanyahu is the only sitting prime minister in Israeli history to stand trial, after being charged with fraud, breach of trust, and accepting bribes in three separate cases accusing him of exchanging favors with wealthy political supporters.

Trump has previously written to Herzog to urge a pardon and advocated for one during his October speech before the Knesset. He said Monday that Herzog has told him “it’s on its way” without offering further details.

“He’s a wartime prime minister who’s a hero. How do you not give a pardon?” Trump said.

Herzog’s office said in a statement that the Israeli president and Trump have not spoken since the pardon request was submitted, but that Herzog has spoken with a Trump representative about the U.S. president’s letter advocating for Netanyahu’s pardon.

“During that conversation, an explanation was provided regarding the stage of the process in which the request currently stands, and that any decision on the matter will be made in accordance with the established procedures,” the Israeli president’s office said.