Plus: Trump Meets With Ukrainian, Israeli Leaders At Mar-A-Lago To Discuss Peace Deals & Threats

Good evening,

We hope you’ve had a wonderful holiday and are gearing up for a festive New Year. We’re back today with the news.

Later this week: we’ll be sharing our 2025 year-in-review and 2026 predictions with a special edition of this newsletter. We’ll also be taking a couple of days off on New Year’s Eve and New Year’s Day — and we hope you get the chance to do the same.

Special Offer: you can find all of our coverage – plus context and analysis – over on Mo News Premium. Join now and get 15% off our annual memberships with code “2026.”

The Mo News Team

🚨 ONE IMPORTANT THING

DHS Launches Minnesota Fraud Probe After Viral Independent Investigation

Homeland Security and ICE officers are "conducting a massive investigation on childcare and other rampant fraud" in Minneapolis, Homeland Security Secretary Kristi Noem announced Monday. In an X post showing federal officers in Minnesota today, she said that there is "more coming."

The announcement follows an investigation by YouTuber Nick Shirley, who posted a nearly 45-minute video Friday alleging millions of dollars of additional fraud within Minnesota’s government-funded childcare and healthcare programs. Note: Shirley’s video follows a multi-year investigation in the state that has already led to multiple convictions and found more than a billion dollars in alleged fraud.

INSIDE THE INVESTIGATION
In the video – which has about 120 million views on X, as of Monday afternoon – Shirley visits multiple facilities alongside an independent investigator named David and claims to have uncovered $110 million of fraud in a single day.

One of those facilities, "Quality Learing Center" (which misspelled "learning" on their signage), reportedly received approximately $4 million in state funds to serve up to 99 children. However, the facility appeared closed mid-week when Shirley showed up.
The investigation by Shirley, who is conservative, does not clearly differentiate between fraudulent entities and legitimate businesses, as several locations blocked him from entering while he was filming. Vice President JD Vance, House Speaker Mike Johnson, Donald Trump Jr., and Elon Musk helped amplify Shirley’s report online.

Republicans have been putting pressure on Minnesota Governor Tim Walz (D) to step down amid the reports. A spokesperson for Walz told Fox News that the governor has spent years fighting fraud, including “launching investigations into these specific facilities, one of which was already closed.”

BIGGER PICTURE
FBI Director Kash Patel responded to the video Sunday, stating the agency had "surged personnel" to the state to "dismantle large-scale fraud schemes" prior to the reporting. Federal authorities began to raid facilities in Minnesota Monday.

Ongoing investigation: Earlier this month, a federal prosecutor estimated that $9 billion or more may have been stolen from 14 Minnesota-run programs since 2018. Prosecutors have so far charged more than 90 people accused of setting up companies that billed state and federal agencies millions of dollars for social services that were never provided.
- More context: Law enforcement has been investigating a widespread fraud scheme in Minnesota for roughly five years – since it was first discovered that millions of dollars may have been stolen from a government program meant to feed hungry children during the pandemic.
Nearly 90% of the defendants charged so far are Somali Americans.
- There are roughly 84,000 Somalis in the Minneapolis-St. Paul area, most of whom are citizens.
- After reports of the fraud last month, President Trump threatened to end Temporary Protected Status for about 700 Somali immigrants. Federal officials also sent immigration officers to the Twin Cities.

Another perspective: In an essay for the Minnesota Reformer, a former fraud investigator who is Somali-American says economic desperation, unrecognized professional credentials, and the pressure to send remittances back home drive a “desire” for financial shortcuts. This combined with Minnesota’s weak oversight on providers creates a perfect opportunity for organized fraud, Kayseh Magan writes.

”What’s often lost is that Somalis are usually the victims in many of these cases — their identities have been stolen by providers, or they have been used by providers to get state money but never receive the services that they need — like desperately needed mental health services,” Magan notes.
Somalis in the diaspora send nearly $2 billion annually in remittances back home, which makes up an estimated 25% of Somalia’s GDP. Some of the fraudulent money is accused of reaching Al-Shabaab, the Al-Qaeda–linked militant group that controls parts of Somalia. Federal law enforcement has yet to confirm that during the current investigation.

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🚨 ONE THING WE’RE WATCHING

Mar-a-Lago Diplomacy: Trump Pushes Ukraine Peace Deal While Netanyahu Presses For Action On Iran, Gaza

President Trump is using his Mar-a-Lago property, in Palm Beach, Florida, as a hub for high-stakes diplomatic talks over the holidays.

Standing next to Israeli Prime Minister Benjamin Netanyahu on Monday, Trump warned that the U.S. would back new Israeli strikes if Iran continues rebuilding its nuclear or ballistic missile programs. The day before, he met with Ukrainian President Volodymyr Zelensky to discuss the U.S.-backed 20-point peace plan to end the nearly four year war.

ON IRAN
Netanyahu is reportedly pressing for renewed action against Iran, about six months after a 12-day war ended in June.

Israeli airstrikes in June targeted Iran’s ballistic missile and nuclear capabilities. The U.S. also joined in striking multiple Iranian nuclear sites.
According to an analysis published last month by the Institute for Science and International Security, Iran’s nuclear enrichment facilities remain “severely damaged or destroyed."
- However, Iran is now doubling down on its ballistic missile program, as it realized it can do significant damage in Israel if they are able to overwhelm the country's air defense systems.
- Iran reportedly conducted missile tests recently, though Iran’s state broadcaster denied the claims. The Associated Press reported that Iran was rebuilding missile-production sites in September, citing satellite imagery.

Trump and Netanyahu also discussed next steps in Gaza, including reconstruction and the remains of a final hostage, months after a ceasefire that began in October following two years of war.

RUSSIA TO REBUILD?
Trump said he had a “productive” phone call with Russian President Vladimir Putin about Russia’s role in postwar reconstruction in Ukraine before he met with Zelensky. The two spoke by phone for the second straight day Monday, with Trump saying there still are “a few very thorny issues.”

“Russia’s going to be helping,” Trump claimed Sunday. “Russia wants to see Ukraine succeed ...including supplying energy, electricity, and other things at very low prices. A lot of good things came out of that call today.”
- Zelensky raised his eyebrows as Trump spoke about his call with Putin.
Trump said he and Zelensky agree on most of the proposed peace deal but are still hammering out the details, including on security guarantees.

Putin has not yet agreed to the 20-point plan. Land concessions remain a divisive issue between Russia and Ukraine.

⏳ THE SPEED READ

🚨NATION

Heavy snow, strong winds and extreme chill sweep from the Midwest to the East Coast (NPR)
Two pilots killed after helicopters collided in New Jersey are identified (AP)
Nancy Pelosi predicts Democrats will win back House in 2026 (THE HILL)
Federal judge dismisses indictment against TikToker shot by ICE (ABC)
Trump’s Justice Department probes Google, Verizon over DEI policies, citing fraud law (NY POST)

🌎 AROUND THE WORLD

UN Security Council to convene emergency meeting after Israel becomes first country to recognize Somaliland (TIMES OF ISRAEL)
Thailand accuses Cambodia of breaking newly signed ceasefire deal (BBC)
China announces war games around Taiwan after hitting out at major US arms deal (CNN)
Mexican president says 13 people died in the Interoceanic Train derailment in southern Mexico (AP)
Winter rain floods Gaza camps as Netanyahu heads for U.S. meeting (NBC)

📱BUSINESS, SCIENCE & TECH

Bankruptcy success rate for student loan borrowers jumps to 87%, study finds (CNBC)
OpenAI is looking for a new Head of Preparedness (TECHCRUNCH)
Tech billionaires threaten to flee California over proposed 5% wealth tax (FOX)
Bottled water drinkers ingest 90,000 more microplastic particles each year, study finds (INDEPENDENT)

🎬 SPORTS & ENTERTAINMENT

French split over Brigitte Bardot tribute due to her far right views (CBS)
‘Avatar: Fire and Ash’ ignites box office for second straight weekend (CNN)
Bears’ heartbreaking loss to 49ers costs them chance at top seed in NFC playoffs (AP)
Frankie Muniz, Bryan Cranston return for more chaos in ‘Malcolm in the Middle’ revival trailer (HOLLYWOOD REPORTER)

ICYMI FROM THE 📲

In case you missed it… A 104-year-old veteran performed the national anthem before a New York Islanders vs. New York Rangers game on Saturday night.

Dominick Critelli, an Italian immigrant who served in World War II, walked down to the ice and played the “Star-Spangled Banner” on his saxophone. The crowd erupted into applause and chants of “USA!” at the end. 🎷🇺🇸