The Megyn Kelly Show - Criminal Probe Into Fed Chair Powell, Homan's Warning on ICE, MN Fraud Admissions: AM Update 1/12

Episode Date: January 12, 2026

Federal Reserve Chairman Jerome Powell confirms he is under criminal investigation by the Justice Department over whether he misled Congress about ballooning costs tied to the Fed’s $2.5-billion headquarters renovation. Tensions explode in Minneapolis after an ICE agent fatally shoots a woman driving toward him, as state and local Democrats publicly condemn the officer and Border Czar Tom Homan warns that reckless rhetoric is putting law enforcement lives at risk. Minneapolis Mayor Jacob Frey concedes there is a massive fraud problem in the city as federal authorities step in to dismantle a sprawling benefits-fraud network. President Trump weighs a range of possible military actions, from Iran to Greenland. The college football playoff championship is set, with undefeated Indiana facing Miami, behind breakout Heisman-winning quarterback Fernando Mendoza, whose faith-driven, stoic philosophy has made him one of the season’s most compelling stars. PureTalk: Cut your wireless bill to $20/month—switch to PureTalk now at https://PureTalk.com/KELLY ARMRA: go to https://tryarmra.com/MEGYNto get 30% off your first subscription order Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

Good morning, everyone. I'm Megan Kelly. It's Monday, January 12th, 2026, and this is your AM update. Federal Reserve Chairman Jerome Powell confirms he's under criminal investigation by the DOJ. We've got to stop the hyperridden. Saying this officer's a murderer is dangerous. As state and local lawmakers inflamed tensions in Minnesota following the shooting death of a woman resisting arrest who was accelerating her car toward an ICE agent, orders are Tom Homan calling on the left to turn down the temperature. Obviously, everybody could have done more to prevent fraud. That's a fair point to make.

Minneapolis Mayor Jacob Frye forced to admit there's a real fraud problem in his city as the feds step in to fix it. President Trump eyeing possible military action in two countries and the college football playoff championship teams are set, featuring one of the most unique star players in years. All that and more coming. up in just a moment on your AM update. If your credit card balance is freaking you out after all the holiday spending, I mean,

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statements regarding the renovation of the bank's D.C. headquarters. The New York Times reporting the inquiry, approved by U.S. Attorney for D.C., Janine Piro in November, focuses on whether Powell lied to Congress about the scope of the project. In 2017, the Fed receiving approval for the work, estimated to run about $1.7 billion, cost projections now climbing to about $2.5 billion. Powell last night in a video posted to social media, looking rattled, confirming the probe and saying it's tied to his June congressional testimony. Powell says it's merely a pretext related to his fight with President Trump over interest rates. I have deep respect for the rule of law and for accountability in our democracy. No one, certainly not that.

chair of the Federal Reserve is above the law. But this unprecedented action should be seen in the broader context of the administration's threats and ongoing pressure. This new threat is not about my testimony last June or about the renovation of the Federal Reserve buildings. It is not about Congress's oversight role. The Fed, through testimony and other public disclosures, made every effort to keep Congress informed about the renovation project. Those are pretexts. The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the president. Public service sometimes requires standing firm in the face of threats.

I will continue to do the job the Senate confirmed me to do with integrity and a commitment to serving the American people. Thank you. Since taking office last January, President Trump waging a public pressure campaign, urging the Fed to lower interest rates. The Fed, ultimately voting to lower rates three times last year, each move criticized by President Trump as too late and not drastic enough. The Federal Reserve is a quasi-independent body with a unique status, meaning the Fed chair, while

nominated by the president, cannot be removed without cause. Concerns over ballooning costs of the Fed's headquarters, reaching a fever pitch in July, with President Trump visiting the construction site, criticizing the increasing costs, and referring to it as, quote, sort of, a fireable offense. Powell's term as Fed Chair expires in May. At least 30 people arrested over the weekend in Minneapolis as residents take to the streets protesting ICE after an agent shot a woman resisting arrest as she accelerated her SUV toward the officer. State and local officials leaping to condemn the agent and ICE and continuing to

misrepresent what actually happened. Minneapolis Mayor Jacob Frost. a Democrat yesterday on NBC. The ICE agent was not run over, as Trump stated. You had a person that was definitively trying to just get out of there. They were trying to leave the scene. That is not a person that's trying to run an ICE agent over. You have a person that is trying to protect our city to look out for our neighbors. When there is debate about baseline facts, like, for instance, did the ICE agent

get run over. Guys, the answer is no. It didn't happen. That agent is heard on tape, exclaiming in alarm as the vehicle clearly hits him before he opened fire, a moment that is caught on video and audio. The agent and Iraq war veteran later seeking treatment at the hospital for a hip injury, which the mayor denigrated in a press conference, quote, he walked out of there with a hop in his step. Borders'ar Tom Homan, who spoke to the agent, described the impact of the incident Saturday on the Dr. Phil podcast. He's concerned. I've seen today his face all over social media.

He's been doxed. People are threatening to kill him. So he's not good. No, he fears for him and his family. And again, let the investigation play out. Before you say you want to execute this man, let the investigation play out. This officer is not in a good spot emotionally for his family.

You see upset about what took place? Of course it is. I mean, any law enforcement officer who uses any sort of, you know, I've been around a long time, even if it's less lethal force, if you might put hands on somebody and take them down, it affects you. Last week's incident marking the second encounter with a weaponized vehicle for that agent, an illegal alien child molester over the summer hitting the gas during an arrest, dragging the officer far down the road causing injuries that required 33 stitches. Homeland Security Secretary Christine Nome yesterday on CNN on the heightened risks

immigration officials know they're facing. We've seen vehicles weaponized over 100 times in the last several months against our law enforcement officers. So they definitely know that the threat is real, that individuals who are trained by activists to go out and to impede their law enforcement operations will weaponize their vehicles and try to run them over and drag them and not stop. So they certainly go into these situations with that knowledge that that could happen,

and that's what their training prepares them for. Congresswoman Ilan Omar, a Democrat from Minnesota on CBS yesterday, seemingly encouraging more people to interfere in law enforcement operations. I think it is really important for Americans to record, to create the level of accountability and transparency, that we need. What we have seen in Minneapolis is ICE agents oftentimes jumping out of their cars. These are unmarked cars. Oftentimes they're wearing a mask. They're approaching running towards cars. They're pulling people out of those cars. Oftentimes these people are citizens. Oftentimes

these people have documentation of their legal right to be in this country. And we know that DHS has lied repeatedly when it comes to these accounts. So it is even more important for there to be recording from eyewitnesses every single time these actions are taking place. Mr. Homan yesterday on NBC pleading with the media and lawmakers to turn down the temperature. We've got to stop the hyperedic. Sandus, officers, a murderer, is dangerous. It's just ridiculous. It's just going to, it's going to inferiorate people more, which means it's going to be more incidents like this because the hateful rhetoric is not only continuing, now it's tripled down and doubled down. I'm asking you to respond to the protesters who say they feel less safe, less safe who say they're concerned for their neighbor. Because you're looking at media reports and saying, ICE are terrorists, they're racist, they're the Nazis.

They're listening to people saying that, you know, using the term disappearing people. It's because of the rhetoric, the hateful rhetoric. So that small population out there that's already half nuts, they hear this rhetoric that ISIS racist and the Nazis, and they're disappearing people, that empowers them to do stupid things. The recent federal surge into Minnesota, motivated in part to investigate widespread fraud

across the state's vast social welfare system, a plundering of taxpayer dollars that prosecutors estimate totals at least $9 billion across 14 Medicaid services. Amid the fallout Minnesota Governor Tim Walz, a Democrat in early January, dropping his reelection bid. NBC yesterday asking Minneapolis Mayor Jacob Fry, an emphatic critic of the Trump administration,

if he believes Governor Walls did enough to crack down on fraud. Well, look, Governor Walls is the reason that we've got paid family leave in Minnesota. He's the reason we've got three school lunches. him and I, we've been through thick and thin. But did he do enough to combat fraud, Mayor? Did he do enough to combat fraud? Look, obviously everybody could have done more to prevent fraud. And I think that's a fair point to make.

He's setting up a whole bunch of infrastructure to do that. And by the way, look, the fraud's real. We've all got to acknowledge it. The fraud is very real. And by the way, when somebody commits fraud, you investigate it, you charge, you prosecute. And yeah, you put the person in jail. As an individual, you do not hold an entire community, any community, accountable for the actions of individuals.

The Trump administration instituting several measures to handle the fraud, including Medicare and Medicaid deferring funding for 14 programs pending review, HHS freezing some child care payments and requiring more verification of applicants, the Small Business Administration, suspending nearly 7,000 borrowers from federal loan programs, the Agriculture Department requiring additional verification of food stamp applicants, the DOJ creating a new senior position dedicated to prosecuting fraud, and Treasury investigating four money transfer firms for fraud,

auditing certain banks for money laundering, and through the IRS, investigating non-profits for alleged fraud during COVID, just to name a few. Congresswoman Omar, who represents Minneapolis and is herself a Somali immigrant, telling CBS the fraud problem is real while taking issue with the Trump administration's approach to dealing with it, you know, by actually arresting criminals. Are you confident that the fraud that has been discovered is no longer being conducted now? Is there any justification for saying this food stamp money is somehow being misused? Yeah, there are ways to investigate fraud, which we have been doing in Minnesota, which the federal government, has been doing under the Biden administration, there is no reason for them to use this level of rhetoric. There is no reason for them to fully stop the funding these programs. The only reason

they are doing that is for PR purposes. And it is harming our state. It is harming my constituents. And it is creating the kind of chaos and confusion that no one needs in this moment. Treasury Secretary Scott Besant traveling to Minnesota last week for a firsthand look at the operations underway. Secretary Bessent telling Fox Thursday that in addition to the fraud crackdown on wrongdoers, Treasury will soon offer financial rewards to whistleblowers. Look, we know that these rats will turn on each other. We heard today that one of the people who has been convicted of fraud, she was given $200,000 to bribe a juror, and she was so corrupt, she skimmed 80,000.

of it and only tried to give $120,000 bribe. So we are going to offer whistleblower payments to anyone who wants to tell us the who, what, when, where, and how this fraud has been done. And I think that that will give us a greatly poured on how to get it done. Coming up, U.S. foreign policy heating up across both hemispheres as President Trump reportedly weighs a number of possible military options from. Iran to Greenland, and the final showdown in college football playoffs set for next week. So I can safely say that at times, many of us feel at some point in our day sluggish, bloated, or not quite ourselves. Modern life is hard. Process foods, too little sleep, endless stress,

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30% off your first subscription order. Go to ArmRA, A-R-M-R-A-com slash Megan, or just enter M-E-G-Y-N to get 30% off your first subscription order. That's A-R-M-R-A.com slash Megan. U.S. foreign policy accelerating on multiple fronts. American airstrikes against ISIS in Syria, mounting pressure on the Iranian regime, and President Trump reportedly ordering up military plans to invade Greenland. On Saturday, the U.S. Air Force carrying out a large-scale strike in Syria, hitting more than 35 targets, including weapons caches, supply routes, and other ISIS-tied infrastructure. Central Command spokesman Captain Timothy Hawkins tells the New York Times. Quote, the strikes today targeted ISIS throughout Syria as part of our ongoing commitment to root out Islamic terrorism against our warfighters, prevent future attacks, and protect American and partner forces

in the region. The latest wave of attacks coming after another large-scale strike in mid-December that was in retaliation for an ISIS ambush that killed two U.S. soldiers and a civilian interpreter. President Trump also weighing potential U.S. involvement in Iran amid ongoing civilian protests against the theocratic regime. Protest began in Iran on December 28th following the collapse of the Iranian currency, reports the AP as international sanctions squeeze the economy. The intensity of the demonstrations ramping up in recent days, as some Iranian protesters turn their attention directly on the Ayatollah, chanting, quote, death to the dictator in the streets. Earlier this month, President Trump posting to Truth Social, quote,

If Iran shoots and violently kills peaceful protesters, which is their custom, the United States of America will come to their rescue. We are locked and loaded and ready to go. Mr. Trump following up in a Saturday post, quote, Iran is looking at freedom, perhaps like never before. The USA stands ready to help. The BBC reports that it counted 180 body bags in footage from a morgue near Tehran. One source telling the BBC, quote, it's like a war zone. The streets are full of blood.

The Wall Street Journal reporting President Trump is set to meet on Tuesday with senior officials, including Secretary of State Marco Rubio, Secretary of War Pete Hegseth and Joint Chiefs Chair Dan Raisin-Kane. Last night from Air Force One, President Trump saying Iran is crossing his, quote, red line. There seem to be some people killed that aren't supposed to be killed, but we're looking at it very seriously. The military is looking at it, and we're looking at some very strong options. President Trump also saying the Iranians are now ready to negotiate, but that the U.S. may have to, quote, act before a meeting is set up. U.S. officials will reportedly brief the president on options including, quote,

boosting anti-government sources online, deploying secretive cyber weapons against Iranian military and civilian sites, placing more sanctions on the regime and military strikes. Mr. Trump is not expected to make any final decisions on Tuesday, the journal reports, as discussions are at an early stage, but with Trump, you never know. Meanwhile, the Daily Mail reporting President Trump has ordered special operations commanders to draw up contingency plans tied to Greenland. The president ramping up his years-long push to acquire the semi-autonomous Danish island territory, citing national security concerns amid the growing presence of China and Russia in the Arctic. According to the report, Deputy Chief of Staff Stephen Miller is driving the push for swift action,

emboldened by the recent successful U.S. military operation that led to the capture of former Venezuelan leader Nicholas Maduro. the prospect of U.S. control over Greenland, including the possible use of military force to make it happen, sending shockwaves through the NATO alliance. Danish Prime Minister Meda Fredrickson warning last week, quote, If the U.S. chooses to attack another NATO country militarily, then everything stops. The Telegraph reporting U.K. officials now coordinating with German and French counterparts, drawing up plans to expand NATO forces on Greenland as a deterrent against China and China. and Russia in the Arctic. This is a way of assuaging U.S. concerns. The Telegraph reporting the EU is

weighing possible sanctions on U.S. companies if President Trump rejects NATO proposals, including possible restrictions on American tech companies and financial institutions. U.S. officials are also discussing the possibility of offering direct payments to Greenlanders, encouraging support for independence from Denmark with a chance of joining the U.S., reports Reuters. President Trump last night on Air Force One. Greenland should make the deal because Greenland does not want to see Russia or China take over. They don't go there. It's very far away from Greenland. And Greenland, basically, their defense is two dog sleds. Do you know, though?

Do you know what their defense is? Two dogslets. We're talking about acquiring, not leasing, not having a short term. We're talking about acquiring. And if we don't do it, Russia or China will. And that's not going to happen. but I'm president. Secretary Rubio, who has said the president's desire is to purchase Greenland, set to meet with his Danish counterpart this week to discuss the island's future.

That ought to be fun. The championship is set. The top-ranked Indiana Hoosiers will face the number 10 Miami Hurricanes next week in the college football playoffs. The Hoosiers are the breakout sensation this season, one game away from the possibility of finishing out the season undefeated. At the center of it all, Heisman Trophy winning quarterback Fernando Mendoza, with his earnest, often viral post-game interviews, including this moment immediately after Friday's 56-22 win against Oregon, sealing the Hoosier's spot in the championship. First of all the glory to God. I mean, the defense played fantastic.

28 points off of turnovers. The hoggy's always spectacular. And the man above, up above, there's so much for us today. and has helped myself and our entire team play such a high level. I couldn't have done this without God, and this is just such a great opportunity for my entire team. Like Pat Gunga said, we're a bunch of misfits. There's zero five stars on our team.

We're just a bunch of gritty guys who are glued together and going towards the Tallman goal, which is the win every each and single game. In a post-game presser, Mendoza offering insight into the team philosophy, he says, has led to their incredible season. Yeah, I would say delayed gratification is a concept that, you know, was brought up by Stoicism and by Stoics, and I think it's one of the greatest attributes.

If you're able to have delayed gratification, discipline in yourself and discipline in your process and preparation, you're able to execute every single week, like this play or this game is the national championship game. Like this game is the most important thing. And so I think that a lot of players and a lot of coaches, and just everybody in Bloomington has done a great job of upholding that concept of delayed gratification

and discipline throughout all aspects of our lives when there's a lot of distractions. And especially with the Big Ten Championship and the Heism and all the other things, I think our team has done a great job of keeping that delayed gratification at the forefront. One week from today, Mendoza will lead his team against the Hurricanes, who come into the championship with 13 wins and two losses. Miami beating Ole Miss 31 to 27 last Thursday in a dramatic come from behind victory. Quarterback Carson Beck running in the game-winning touchdown

with just 24 seconds left on the clock in the fourth quarter. The national title set for 7.30 p.m. East next Monday, the hurricanes holding the home field advantage at Hard Rock Stadium in Miami. And that'll do it for a busy AM update. I'm Megan Kelly. Join me back here for the MK show live on SiriusXMs, the Megan Kelly channel, 11 at noon east, on YouTube.com slash Megan Kelly, and on all podcast platforms.