Garage Logic: CRABBY — Former US Attorney Rachel Paulose Speaks Out on ICE, Court Rulings, and Fraud

January 29, 2026 | Gamut Podcast Network

Episode Overview

This episode features former U.S. Attorney Rachel Paulose in a detailed, candid conversation about recent federal and state legal battles in Minnesota—particularly those involving ICE actions, federal court rulings, strained relations between state and federal agencies, and Minnesota’s sprawling, multi-billion-dollar fraud investigations. Hosts Jay and Kenny use their trademark “garage logic” lens: pragmatic, irreverent, and direct. Rachel Paulose delivers expert legal insight and personal reflection on these historic developments, contextualizing why the current climate is unprecedented and urging a return to cooperation and common values.

Key Discussion Points & Insights

1. Federal Court Crisis: ICE and Habeas Petitions

• Context: Minnesota sued the federal government over Operation Metro Surge and sought a temporary restraining order.

• Chief Judge Assignment:

  • Chief Judge Patrick Schultz, Harvard and Scalia pedigree, is presiding, considered the best possible judge for fairness and rigor ([05:08]; Rachel Paulose).
  • “If life were fair, he would have been on the U.S. Supreme Court.”
    — Rachel Paulose [05:10]

• ICE’s Overwhelming Caseload:

  • Minnesota’s federal courts are flooded with hundreds, possibly thousands, of habeas petitions from detainees ([06:27]; Paulose).
  • Unfortunately, the U.S. Attorney’s office, already stressed by internal turmoil, is too small (approx. 100 staff) to keep pace.
  • Chief Judge Schultz, fed up with government delays, ordered ICE’s local head to appear in court. ICE’s last-minute release of the detainee avoided that showdown but sent a strong message:
    • “The court’s patience is at an end.” — Judge Schultz, paraphrased by Kenny [08:34]
    • Sets an expectation ICE must be able to handle the legal burden, despite the surge.

• Unanswered Questions:

  • Will mass releases occur?
  • Will DOJ send reinforcements?
  • What recourse do possibly misidentified detainees have?
    • 42 USC §1983 permits civil lawsuits for deprivation of constitutional rights ([13:32]; Paulose), but these are expensive, slow, and rare for indigent detainees.

2. Judicial Rulings and Clashes Between State & Feds

• Temporary Restraining Order (TRO) Attempts:

  • Minnesota AG Ellison filed for a TRO to halt Operation Metro Surge.
  • District Judge Kathryn Menendez ruled protestors’ First Amendment rights must be honored and law enforcement must “play by the rules” ([15:31]; Paulose).
    • “The ruling was, essentially, everybody play by the rules.” — Rachel Paulose [15:40]
  • 8th Circuit Court of Appeals reversed Menendez’s order ([16:25]; Paulose).

• Preservation of Evidence:

  • State sued to prevent destruction of evidence in a controversial civilian death.
  • Judge Tostrud issued an order:
    • "Freeze. You're not allowed to destroy any of the evidence..." ([17:12]; Paulose)
  • Hosts found it astounding a judge even needed to say this, highlighting the collapse of trust among agencies ([17:33]).

3. Breakdown of State-Federal Law Enforcement Cooperation

• Personal and Historic Reflections:
  • Rachel Paulose, with 15+ years as a federal prosecutor, expresses sadness over the deterioration:
    • “I experienced professionalism and cooperation and trust. And so that makes me sad.” ([21:07]; Paulose)
  • Sanctuary city policies (Minnesota, specifically Minneapolis/St. Paul) are part of the friction: state refusal to aid federal immigration enforcement is cited as a fundamental issue ([21:41]; Paulose).
    • “Can we at least agree that people who have violated the criminal law, who are in this country illegally, should be turned over to ICE...” ([21:41]; Paulose)

4. Arrival of Tom Homan and Hope for Reconciliation

• Importance of Tom Homan’s Visit:
  • Homan, the “border czar” and veteran of service under six presidents, sent as a trusted ambassador to mediate and reset relationships ([25:52]; Paulose).
    • “It tells me that there is hope for reconciliation and both sides are moving, which is what needs to happen.” ([26:48]; Paulose)
  • Both sides (Trump and Walz administrations, Minneapolis city officials) need to “swallow a little pride” and engage in real talks ([25:08]; Jay).

5. Mass Departure in Fraud Division & Focus on $9 Billion Minnesota Fraud

• Key Personnel Exit:

  • Recent loss of six top fraud prosecutors, notably Joe Thompson; Paulose laments the loss as “wonderful prosecutors who did enormous good” ([29:32]; Paulose).
  • While not unusual for prosecutors to move on, six leaving at once is stunning, and “some of the momentum is going to be lost” in fraud investigations ([31:49]; Paulose).

• Scope and Impact:

  • Feeding Our Future and related fraud cases now estimate $9 billion in fraud; some programs like housing stabilization may be 90% fraudulent ([38:10]; Jay & Paulose).
    • “When Joe first said a billion dollars...and then to up it, double down and go nine billion, was incredibly courageous of him.” — Jay [36:43]
  • Public hopes for Joe Thompson to return to public service, even rumors of a run for governor, but his passion lies in prosecution ([38:49]; Jay & Paulose).
    • "He is a straight shooter...if he gives you a number, it’s because he has facts.” ([37:05]; Paulose)

• Homan’s Role in Fraud Oversight:

  • Homan to “oversee” federal fraud response—a sign the administration takes it seriously and may send additional resources ([32:35]; Paulose).

6. Media, Journalism, and The Role of the Press

• Host Segment (Post-interview):
  • Kenny and Jay discuss the evolution of journalism, the frustrations of “influencers” or non-traditional reporters being held up as journalists without following ethical guidelines ([50:09] onward).
  • They comment on the hazards and expectations of journalism during civil unrest and protests, agreeing that journalists accept the risks and shouldn’t make themselves the story ([56:10] and following).

7. Calls for Humanity and Reflection Amid Political Polarization

• Mutual Respect and Dignity:
  • Rachel Paulose closes with an appeal for recognizing the “image of the Almighty” in all people, upholding the principles of dignity, rights—even for those we disagree with, or who have committed crimes ([44:45]; Paulose).

Notable Quotes & Moments

“If life were fair, he would have been on the U.S. Supreme Court...He does not suffer fools gladly.”
— Rachel Paulose on Chief Judge Patrick Schultz [05:08]

“The court’s patience is at an end.”
— Paraphrased, Judge Schultz (via Kenny) [08:34]

“Can we at least agree that people who have violated the criminal law, who are in this country illegally, should be turned over to ICE?”
— Rachel Paulose [21:41]

“This tribe mentality is really hurting the country.”
— Kenny [45:45]

“Being an AUSA is such a unique honor...to do good every day, to know that you’re fighting for the right thing and to put dangerous people away, to protect the public.”
— Rachel Paulose [41:06]

“If he gives you a number, it’s because he has facts, evidence, documents to back it up.”
— Rachel Paulose on Joe Thompson [37:05]

“I hope we can get to a place where we see in even our opponents the image of God...We believe strongly in this country in the sanctity of human life, and we defend it ferociously...that again makes us unique.”
— Rachel Paulose [44:45]

Timestamps for Major Topics

• Introductions, ICE and Federal Case Background — [03:00–06:15]
• Chief Judge Patrick Schultz Profile — [05:08–06:00]
• ICE Habeas Crisis & Court Showdowns — [06:27–09:27]
• Legal Rights of Detainees, Litigation Options — [12:32–14:57]
• Temporary Restraining Orders/Court Rulings — [15:07–17:12]
• Federal-State Evidence Conflict — [17:13–18:49]
• Breakdown of State-Federal Cooperation — [19:26–21:07]
• Sanctuary Cities’ Role — [21:07–23:21]
• Tom Homan’s Arrival & Hopes for Resolution — [25:52–28:44]
• Personnel Loss in Fraud Prosecution, $9 Billion Fraud Scope — [29:32–31:49]
• Impact on Fraud Case Momentum & Homan’s Oversight Role — [32:35–33:08]
• Professionalism and Character in Law Enforcement — [36:43–41:47]
• Paulose’s Call for Human Dignity and Cooperation — [44:45–46:06]
• Host Reflections on Journalism & Coverage Challenges — [49:21–56:44]

Tone & Language

The episode blends authority and pragmatism with frank, relatable humor. Paulose is composed yet passionate; Jay and Kenny infuse every exchange with self-deprecating asides, skeptical curiosity, and genuine Midwestern concern for the state of public life and trust.

Summary

This episode offers a rare, insider’s breakdown of high-stakes legal and political drama in Minnesota, with Rachel Paulose providing (in plain language) both the technical details and the ethical context missing from most coverage. Listeners come away with a nuanced understanding of the federal/state legal stand-off, the ICE court crisis, the extraordinary scale and challenge of fraud prosecutions, and, above all, the urgent need for renewed trust, competence, and human decency in American public life.