Minneapolis Raids: Federal agents executed 22 search warrants across the Twin Cities Tuesday in a sweeping fraud probe, with several locations connected to childcare businesses.
Washington Attorney General: Nick Brown is responding for the first time to nearly 1,000 pages of internal income tax documents obtained by The Center Square that show his office helped lawmakers shape the new tax.
Pennsylvania Standoff: State Treasurer Stacy Garrity refused to pay $1 million in security bills for Gov. Josh Shapiro's private home, setting up a public fight between two likely 2026 gubernatorial rivals.
Redistricting Battles: The U.S. Supreme Court struck down Louisiana's congressional map and upheld Texas's in back-to-back rulings.
Illinois Bail Law: Officials from both parties are calling to overhaul Illinois's SAFE-T Act after a seven-time felon allegedly killed a Chicago police officer while on electronic monitoring.
Federal agents raid 22 Twin Cities sites in fraud probe
What we found: The FBI, Homeland Security Investigations, and local law enforcement executed 22 criminal search warrants across Minneapolis and St. Paul on Tuesday, including several at businesses connected to or offering childcare. Homeland Security Investigations said the operation involves "the rampant fraud of U.S. taxpayer dollars." Officials declined to release additional details, citing operational security.
The stakes: Minnesota has already been tied to billions in suspected taxpayer fraud, including the $300 million Feeding Our Future case. Federally funded benefit programs administered by state agencies are how most Americans' tax dollars reach local providers, and a fraud sweep this large signals that more enforcement is coming.
The reaction: Gov. Tim Walz claimed credit on social media, saying state agencies caught the irregular behavior and reported it. FBI Director Kash Patel pushed back publicly, telling Walz, "This FBI and DOJ with our DHS partners drafted and executed every search warrant today." House Majority Whip Tom Emmer, R-Minn., thanked DOJ and DHS for the action.
Where it stands: The investigation is ongoing and federal officials have not named targets or released charging documents.
3 States
Pennsylvania — Republican Treasurer Stacy Garrity refused last week to pay $1,072,795 in security upgrades at Gov. Josh Shapiro's private Montgomery County home, saying state law doesn't authorize the treasury to fund work on a public official's private property. Five former governors from both parties pushed back Monday, and a Republican senator proposed an Executive Protection Oversight Board to set rules for future cases — a fight other states will watch as questions about funding security for elected officials surface.
Illinois — Officials across party lines are calling for changes to the state's SAFE-T Act after Alphanso Talley, a 26-year-old with seven prior felony convictions, allegedly escaped electronic monitoring and killed Chicago Police Officer John Bartholomew while critically wounding his partner. Senate Minority Leader John Curran filed a bill to revoke pre-trial release for anyone who commits a felony while out, putting Illinois in focus as it adds to broader debates over cashless bail laws.
California — District materials obtained by Defending Education and shared exclusively with The Center Square show San Francisco Unified School District is using taxpayer funds to host LGBTQ+ events for students, including drag makeup lessons, while running a $102 million budget deficit. The district hasn't disclosed costs and has restricted some Pride documents from public view, raising transparency questions that could extend to other districts.
2 Issues
Elections — The U.S. Supreme Court issued back-to-back rulings reshaping the 2026 congressional map. In a 6-3 decision, the court struck down Louisiana's map, finding the state relied too heavily on race when drawing a second majority-Black district, a ruling that narrows when states can use the Voting Rights Act to justify race-based maps. The same week, the court upheld Texas's new map for the second time, ending all challenges and chastising lower court judges for "serious legal errors."
Energy — A Wisconsin Legislative Audit Bureau report found the state will forgo $1.5 billion in sales tax revenue from four data center projects from Microsoft, Epic, Meta, and an OpenAI-Oracle-Vantage partnership, plus $369 million per year once construction wraps. The original Department of Revenue estimate pegged each facility at $215.5 million; Microsoft alone is spending $20.6 billion. The gap between projected and actual subsidy costs is fueling debate over whether the tax break is paying off.
1 Number
$186 billion
Federal agencies made an estimated $186 billion in improper payments last year, a $24 billion increase from fiscal year 2024, with five programs — Medicare, Medicaid, the Earned Income Tax Credit, SNAP, and the Shuttered Venue Operators Grant — accounting for roughly 73% of the total.
Washington Attorney General defends income tax coordination as documents emerge
Washington Attorney General Nick Brown is responding for the first time to nearly 1,000 pages of internal income tax documents obtained by The Center Square, and his explanation for the emails is raising new questions.
Kris Mayes, Arizona Attorney General
Mayes filed suit against the U.S. Department of Homeland Security to block construction of an ICE detention facility in Surprise, Arizona, alleging DHS skipped required environmental reviews and chose a warehouse located across the street from a hazardous chemical storage site and a mile from two schools. The lawsuit tests how far state attorneys general can go to slow federal immigration detention buildouts nationwide.
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