Fox News Hourly Update – 1AM ET 01/13/2026 Newscast

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This episode delivers a fast-paced overview of top stories in U.S. politics and national security, including escalations between federal agencies and Minnesota officials over alleged welfare fraud, new U.S. tariffs on Iran, Supreme Court deliberations on tariff policy, investigations into the Federal Reserve, and federal efforts to combat public sector fraud.

Key Stories & Discussion Points

1. Federal Agents Sent to Minnesota over Welfare Fraud Allegations

• [00:02] Ted Lindner reports Homeland Security is sending more agents to Minneapolis as part of ongoing ICE operations, following viral claims of widespread welfare fraud.
• Minnesota Attorney General Keith Ellison has filed a lawsuit against DHS, calling their increased presence an unlawful surge and accusing agents of intimidation and violence.
  • Quote:
    “We asked the courts to end the DHS unlawful behavior in our state, the intimidation, the threats, the violence.”
    — Keith Ellison, [00:19]

ICE Response to Racism Allegations

• [00:27] Acting ICE Director Todd Lyons refutes accusations that ICE makes arrests based on race.
  • Quote:
    “You know that's 100% false. When ICE officers and ICE special agents are out there in the field, we conduct targeted enforcement so we know exactly who we're going after. So that's completely false. And baseless.”
    — Todd Lyons, [00:33]
• The agent deployment stems from a conservative influencer’s YouTube video about daycare fraud in Minnesota. This prompted the federal government to pause childcare payments to Minnesota and other states.

2. U.S. Imposes Economic Pressure on Iran Amid Protests

• [01:08] President Trump introduces a 25% tariff on goods imported from Iran’s trading partners, threatening military action in response to Iran's crackdown on anti-government protests.
• White House Press Secretary Caroline Levitt notes that Iranian officials are privately seeking talks, despite public hostility.
  • Quote:
    "A far different tone than what you're seeing publicly."
    — Caroline Levitt, [01:27]
• Iranian government warns U.S. intervention would make American military bases legitimate targets.

3. Supreme Court Weighs Tariffs—Major Economic Stakes

• [01:40] President Trump warns of "massive financial fallout" if the Supreme Court reverses his reciprocal tariff policy, stating the U.S. may have to return "hundreds of billions of dollars in tariff revenue".
• The Court's decision on the constitutionality of the president’s emergency authority on tariffs could arrive as soon as Wednesday.

4. Treasury & IRS Crackdown on Public Sector Fraud in Minnesota

• [02:32] Treasury Secretary Scott Bessen announces an IRS-led task force to investigate fraud in Minnesota’s public sector.
• [02:41] The investigation focuses on money transfer firms and banks suspected of facilitating fraudulent transactions. Treasury’s FinCEN (Financial Crimes Enforcement Network) has notified four firms under investigation (specific names not disclosed).
  • Quote:
    “Treasury's Financial Crimes enforcement network… has already notified four money transfer firms that they are under investigation.”
    — Grady Trimble, [02:41]
• IRS is auditing banks involved in questionable wire transfers to assess potential money laundering.

5. Legal Battles Over Federal Funds to Democrat-Led States

• [03:14] A federal judge has blocked the administration from freezing $10 billion in federal funds to several states, which some claim is retaliation for political opposition.

6. Criminal Investigation Threats Against Federal Reserve Chair

• [03:33] Federal Reserve Chair Jerome Powell responds to grand jury subpoenas over his testimony on Fed building cost overruns, highlighting his commitment to nonpartisan action.
  • Quote:
    “I have carried out my duties without political fear or favor.”
    — Jerome Powell, [03:33]
• Powell calls the criminal threats “pretexts” in response to the Fed’s independent interest rate decisions, not presidential will.
  • Quote:
    “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.”
    — Jerome Powell, [03:56]
• Earlier testimony explained cost overruns at the Fed including amenities like "VIP elevators" and "marble roof terrace gardens".
• Justice Department prioritizes investigations into alleged abuse of taxpayer dollars.

Notable Moments & Quotes

• [00:19] Keith Ellison calls for court intervention against DHS:
  “We asked the courts to end the DHS unlawful behavior in our state, the intimidation, the threats, the violence.”
• [00:33] ICE Director Todd Lyons rebuffs racial profiling claims:
  “That's 100% false… we conduct targeted enforcement so we know exactly who we're going after.”
• [01:27] Caroline Levitt on Iran’s private communications:
  “A far different tone than what you're seeing publicly.”
• [03:33] / [03:56] Jerome Powell defends Fed’s independence:
  “I have carried out my duties without political fear or favor.”
  “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.”

Key Timestamps

• 00:02 – DHS sending agents to Minnesota; state files lawsuit
• 00:27 – ICE Director responds to accusations
• 01:08 – U.S. tariffs and Iran protests update
• 01:40 – Trump warns of tariff policy fallout amid Supreme Court review
• 02:32–02:41 – Treasury announces IRS task force for Minnesota fraud
• 03:14 – Judge blocks freeze on federal funds to Democrat-led states
• 03:33–03:56 – Jerome Powell, Federal Reserve response to subpoena and criminal threats

This summary captures the core news and illuminating quotes from the Fox News Hourly Update, offering listeners a rapid-yet-comprehensive view of urgent U.S. national issues at the start of January 13, 2026.