During a Thursday visit to Minnesota, U.S. Treasury Secretary Scott Bessent discussed tariffs, investments and statewide fraud. “For decades, Minnesota led the Midwest as a hub for culture, business and innovation. But in recent years, the leadership in Minnesota has knocked this great state and i ts people off course,” Bessent said in his speech to the Economic Club of Minnesota in Golden Valley. Overregulation and the second-highest corporate tax rate in the country “have hurt job creators” and led to the state’s net outbound migration, Bessent said. The recent 2026 Business Benchmarks report from the Minnesota Chamber of Commerce found that employers have growing concerns about Minnesota’s tax and regulatory environment discouraging investment. Minnesota ranks 44th for overall tax competitiveness and has the sixth-highest personal income tax rate, per the report. Furthermore, a recent survey from Enterprise Minnesota found that 53% of manufacturers report the business climate is worsening due to new labor mandates. In addition to business climate challenges, Minnesota is also facing workforce challenges due to declining birth rates and net migration. From 1976 to 2000, Minnesota’s labor force grew by about 1.7% annually. Between 2019 and 2024, the workforce grew by 0.2% annually, according to the chamber’s report. Here are three takeaways from Bessent’s speech. Prosecute fraud “Minnesota is ground zero for what may be the most egregious welfare scam in our nation’s history to date,” Bessent said, singling out Minnesota Gov. Tim Walz for blame. Federal prosecutors estimate the state lost billions of federal dollars in recent years to Medicaid theft schemes. Federal fraud indictments continue to emerge in housing and autism programs after a federal investigation first became public in the summer of 2025. In December, Assistant U.S. Attorney Joe Thompson announced new fraud charges in two Medicaid-funded programs and told reporters that the state could have lost $9 billion or more to fraud in 14 “high-risk” Medicaid-funded programs since 2018. Walz and other state officials have disputed that estimate. “I am here this week to signal the U.S. Treasury’s unwavering commitment to recovering stolen funds, prosecuting fraudulent criminals, preventing scandals like this from ever happening again and investigating similar schemes state by state,” Bessent said. Defend tariffs During his remarks, Bessent gave credit to President Donald Trump’s tariffs, saying they have encouraged corporations to invest in the U.S. “The upshot of President Trump’s trade agenda is trillions of dollars in new investment across a broad cross-section of industries — from automotive manufacturing and semiconductors to tech and pharmaceuticals,” he said. Bessent also pointed out recent multibillion-dollar investment agreements from Minnesota companies like Medtronic, 3M and General Mills. Medtronic, though based in Ireland, was founded in Minnesota and maintains significant operations here. “Investments like these translate to more jobs and more opportunity for workers in Minnesota and across the country,” he said. The long term effects of Trump’s tariffs remain to be seen. The U.S. trade deficit has fallen significantly but, so far, manufacturing jobs have continued to decline. The legality of Trump’s tariffs, which he imposed by invoking a 1977 law used for national emergencies, is expected to be ruled on Friday by the Supreme Court. ‘Trump accounts’ Related Articles Slightly more Americans file for jobless benefits in the last week of 2025, but layoffs remain low Most of Wall Street drifts as defense companies rally Trump says he wants to ban large investors from buying houses. It’s part of his affordability plan Job openings slide to 2nd lowest level in 5 years as hiring remains sluggish Wall Street’s strong start to the year slows as stocks drift One provision of the president’s tax bill, called “Trump Accounts,” aims to give every newborn citizen $1,000 to be invested in American companies. The program, which is planned to launch in July, would allow the account holder access once they turn 18. During Thursday’s event, Bessent urged Minnesota companies to match the $1,000 donation. “You all can allocate directly to the children of Minnesota, Minneapolis, or any zip code of your choice,” Bessent said. “With your patronage, we can ensure a strong financial future for America’s children.” ...read more read less