President Donald Trump announced Tuesday that he will cut funding to sanctuary cities on the first day of February, saying that these cities are breeding “fraud and crime.”
“Starting February 1, we’re not making any payments to sanctuary cities or states having sanctuary cities because they do everything possible to protect criminals at the expense of American citizens,” the president vowed on Tuesday afternoon, adding, “and it breeds fraud and crime and all of the other problems that come.”
Trump was referring to cities across the United States that have declared themselves “sanctuary cities” for illegal immigrants, cities that often attempt to buck the president’s immigration enforcement activities.
U.S. President Donald Trump delivers remarks to members of the Detroit Economic Club at the MotorCity Casino Hotel on January 13, 2026, in Detroit, Michigan. (Photo by Anna Moneymaker/Getty Images)
The president also slammed state officials in Minnesota over the fraud recently uncovered throughout the state, notably publicized by independent YouTuber Nick Shirley, whose viral work reached the eyes of the president and vice president. Trump accused Minnesota Gov. Tim Walz of corruption, saying that such fraud could not have escaped Walz’s notice.
“We have also suspended payments tied to suspected scammers in Minnesota, of which there are many,” Trump added. “It’s a great state. It was a great state. Now it’s getting destroyed by that stupid governor.”
PRESIDENT TRUMP: “Starting February 1st, we’re not making any payments to sanctuary cities or states having sanctuary cities because they do everything possible to protect criminals at the expense of American citizens and it breeds fraud and crime and all of the other problems… pic.twitter.com/FyMYGilLtp
— Fox News (@FoxNews) January 13, 2026
Trump was speaking Tuesday afternoon in Detroit, Michigan, at the Detroit Economic Club, where he delivered a speech largely focused on his administration’s wins over the past year, particularly as they pertain to the United States economy.
In December, the Department of Health and Human Services announced it had frozen all child care payments to the state of Minnesota amid news of the massive fraud scandal in the state. That news came after a federal prosecutor said that there has been at least $9 billion in fraud in the state under Walz’s watch.
On Tuesday, Trump addressed the topic, saying that his administration “will now require proof of attendance in order to receive federal funding for childcare.”
PRES. TRUMP: “We will now require proof of attendance in order to receive federal funding for childcare.”
“Also, we’re freezing any and all welfare payments going to illegal immigrants, effective immediately.” pic.twitter.com/lRD4VCmctu
— Breaking911 (@Breaking911) January 13, 2026
“Also, we’re freezing any and all welfare payments going to illegal immigrants, effective immediately,” he noted.
The Daily Wire reported in December that the Minnesota government was still paying an accused Somali fraudster to run assisted living homes as that man awaited trial for his alleged role in the nation’s largest COVID scam, in which he ran a fraudulent charity.
Walz has said he will not run for reelection but has not said he will resign from his position as governor.
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