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Governor probing 'Decoy Dan' Sullivan election scandal warns system flaw hiding in plain sight

Alaska Gov. Mike Dunleavy warned that an alleged Democratic scheme to recruit a second "Dan Sullivan" into the state's pivotal Senate race exposed a deeper vulnerability in its election system, telling Fox News Digital in an exclusive interview that his administration is investigating newly surfaced evidence just days before the midterms.

Dunleavy said The New York Times uncovered details that state officials did not have when they initially challenged the second Sullivan's candidacy this past summer — including alleged involvement by operatives connected to Democratic nominee Mary Peltola.

The Republican argued Alaska's relatively new election system helped make the controversy possible, as state and federal authorities pursue separate investigations into potential wrongdoing.

"This would have never happened if we didn't have ranked-choice voting," Dunleavy told Fox News Digital. "If this was a historical primary, a primary that our fathers and grandfathers had, this individual [retired schoolteacher Dan Sullivan of Petersburg] would not have gotten out of the primary."

'DECOY DAN' SULLIVAN CASE LEADS TOP SENATOR TO BREAK FOUR-YEAR X SILENCE: 'PATTERN OF LIES'

Dunleavy cited reporting that the Petersburg Sullivan initially denied having been recruited, but the Times found Peltola-connected operatives had worked to recruit spoilers named "Dan Sullivan" from around the state.

"We're compelled to do an investigation on behalf of the people of Alaska, because as they say in Alaska, which is a big fish state, if you can smell the fish way far from the dock, you've got a real problem," Dunleavy said.

"And so, this really does stink."

Alaska's election system advances the top four finishers from a nonpartisan primary to a general election in which voters rank candidates by preference. Dunleavy argued that traditional party primaries would have prevented the second Sullivan from reaching November's ballot.

"Our job as executives are to make sure that we can provide our people with an election that everyone could look at it and say that was done with integrity. And right now this cast, unfortunately, a pall over all of this," he said.

Dunleavy said the state's initial investigation in June after the Petersburg Sullivan surfaced ultimately led to the state Supreme Court, which allowed both Sullivans' names on the ballot, with Senator Sullivan marked "incumbent."

"Initially, when [Petersburg Sullivan] contacted the Division of Elections, he wanted his name listed as Daniel S. Sullivan. That's not his middle initial. That's the middle initial of our incumbent senator. His website looked very, very, very similar to our incumbent senator. And we went to court over this, and the Supreme Court of Alaska ruled that they were going to put his name on the ballot," he said.

"We knew there was a problem, but the courts had decided. And then of course, the article comes out in the Times and there's a whole list of issues that we were never privy to."

The new reporting identified contradictions in accounts of what transpired over the summer, including whether there was contact between Petersburg Sullivan and any campaigns.

RNC REJECTS NARRATIVE OF SPOILER CANDIDATES 'ON BOTH SIDES,' CALLS ALASKA SCHEME 'FRAUDULENT'

"There's a lot more smoke and a lot of fishy smell after this article came out," he said.

In Alaska, elections are overseen by the lieutenant governor, not the governor, and Fox News Digital reached out to Lt. Gov. Nancy Dahlstrom for comment on whether or how her office is investigating.

"They're obviously shoulders deep now in an election with all the people and all the polls open here with early voting. The governor's office is in charge of making sure that there's execution of the laws. That's what this investigation is going to look at to see if there were any violations of law or if there was a civil violation as well," Dunleavy added.

Peltola's campaign has denied involvement with either Sullivan campaign. Peltola also dismissed the controversy as a distraction during a campaign appearance Wednesday, while the New York Times reported that operatives connected to her campaign participated in efforts to recruit potential spoiler candidates.

Fox News Digital reached out to Peltola for additional comment.

Former FEC Chair Hans von Spakovsky told Fox News Digital that something investigators should look at is whether individuals paid by Peltola or another political organization were providing any "in-kind" services to the Petersburg Sullivan.

"In-kind services are considered a contribution to a campaign. Failure to disclose such services is a violation of federal law. Also, if the fair market value of the services provided to the campaign exceeds the maximum contribution allowed to a federal candidate, that is also a violation of federal law. If this was knowingly and intentionally done, it moves from being a civil violation to a criminal violation of the law," von Spakovsky said.

Von Spakovsky pointed to an FEC case involving socialist Sen. Bernie Sanders' 2016 presidential campaign, which accepted campaign assistance from Australian Labor Party members whose travel expenses and stipends were paid by the foreign political organization.

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The FEC determined that the arrangement constituted a prohibited $24,422 in-kind foreign contribution. Sanders' campaign and the Australian Labor Party each agreed to pay $14,500 in civil penalties to settle the matter without admitting liability.

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With Election Day approaching, the governor said the investigation would continue for as long as necessary, warning that the alleged effort could foreshadow new attempts to manipulate elections through misleading candidacies and other tactics.

Fox News Digital's Hannah Brennan contributed to this report.

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4 US cities are the lucky winners of Trump's $300M crime crackdown contest

FIRST ON FOX: Four U.S. cities will share almost $300 million in federal funding after competing to show how they would reduce violent crime and strengthen local law enforcement.

Jacksonville, Florida; Baton Rouge, Louisiana; Jackson, Mississippi; and St. Louis, Missouri, were selected for the Justice Department's new Model Cities Initiative, according to details obtained by Fox News Digital.

The four winners represent markedly different policing environments, from Jacksonville, where murders have fallen sharply in recent years, to Baton Rouge, where officials have struggled with a significant officer shortage, and Jackson, where DOJ says officials proposed a technology-driven strategy to combat persistent violent crime.

Attorney General Todd Blanche and other DOJ leaders will visit each city over the next 10 days to present the awards, when the department plans to reveal the individual funding amounts.

KASH PATEL TO TOUT 'LARGEST' YEAR-TO-YEAR VIOLENT CRIME DROP IN US HISTORY

The DOJ launched the competition in June as part of President Donald Trump's focus on reducing crime in U.S. cities. It invited cities nationwide to submit comprehensive plans for reducing violent crime and improving public safety.

The awards could represent a sizable addition to the cities' existing law enforcement budgets.

Jacksonville budgets about $674 million annually for its sheriff's office, while St. Louis budgeted about $147 million for its police department in fiscal 2026. With nearly $300 million to be divided among just four jurisdictions, each award could amount to tens of millions of dollars, though DOJ has not yet disclosed how the funding will be split.

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"The Model Cities Initiative reflects the Trump Administration’s commitment to reducing crime across the country and ensuring the safety of every American," Blanche said.

"These cities are setting an example of proactive law enforcement that will strengthen the rule of law and improve public safety in their jurisdictions. As violent crime rates continue to fall to historic lows, the Department of Justice is redoubling our efforts to invest in local communities and keep American families safe."

Rather than funding a single policing program, the initiative takes what DOJ describes as a "whole-of-city" approach, bringing together law enforcement, local government officials and community partners to develop strategies tailored to each jurisdiction's public safety challenges.

The money can be used to hire sworn and non-sworn law enforcement personnel and other public safety workers, purchase technology and equipment, expand forensic capabilities and fund programs addressing mental health, substance abuse and recidivism.

Jacksonville's selection comes after a sharp drop in killings. The city recorded 59 murders in 2024, its lowest total since at least 1995 and less than half the number recorded a year earlier, according to the Jacksonville Sheriff's Office. DOJ said murders fell 38% between 2023 and 2025, while robberies declined 25% and aggravated assaults fell 21%.

DOJ pointed to Jacksonville's use of advanced training and technology and efforts to strengthen investigative capabilities in selecting the city. The Jacksonville Sheriff's Office, which has more than 3,600 police, corrections and civilian employees, has an annual budget of roughly $674 million.

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St. Louis' selection is particularly notable given the city's long struggle with violent crime. The city recorded 263 homicides in 2020, but that figure fell to 150 in 2024, its lowest total since 2013, as overall crime declined 15% year over year.

The decline continued into 2025, when homicides during the first three months of the year fell another 45% compared with the same period a year earlier.

DOJ said St. Louis' proposal calls for expanding law enforcement personnel by more than 300, modernizing policing technology and strengthening public safety operations.

Baton Rouge is confronting a different challenge: manpower. The Baton Rouge Police Department was roughly 150 officers short earlier this year, prompting officials to approve what they described as the largest police pay raise in department history. Starting salaries increased from $40,000 to $58,000 as part of an effort to recruit and retain officers.

The department also operates a Real Time Crime Center that uses data analytics and other technology to support officers and investigators.

DOJ said East Baton Rouge Parish stood out for its partnerships among law enforcement, local government and community organizations and its broader approach to combating violent crime.

Jackson, Mississippi, meanwhile, was selected for what DOJ described as an ambitious, technology-driven strategy to address persistent violent crime.

The Jackson Police Department already operates a Real Time Command Center and specialized units focused on gun crime, vice and narcotics and other investigations, while assigning officers to outside task forces. Its proposal calls for greater coordination among law enforcement agencies, expanded investigative capabilities and targeted enforcement, according to DOJ.

"President Trump and this Department of Justice have demonstrated that Americans need not accept unsafe streets as a fact of life," Associate Attorney General Stanley E. Woodward Jr. said. "We have made tremendous strides in restoring public safety, and the Model Cities Initiative offers an opportunity to build on that progress. These cities have the potential to set a new standard for safer communities across America."

The four winning jurisdictions will now work with DOJ to finalize and implement their public safety plans.

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Blanche and other Justice Department officials will travel to all four jurisdictions over the next 10 days to present the awards in person and reveal how the nearly $300 million will be divided among them.

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CHRIS JOHNSON: The data center boom is rescuing forgotten American towns

With the midterm elections approaching, data centers have become an increasingly popular political target. Politicians are raising alarms about their impact on communities, with some calling for construction moratoriums or outright bans.

There's been plenty of fearmongering. But the more Americans learn about data centers, and the more communities experience their benefits firsthand, the stronger the case for continued development becomes.

Data centers have existed for decades, but the rapid growth of artificial intelligence has dramatically increased the demand for computing power. Americans understandably have questions about what this development means for electricity prices, water supplies, and their quality of life. Newer facilities are increasingly being designed with technologies that can address these concerns, including closed-loop cooling systems and quieter operations.

DATA CENTERS COULD BE THE SLEEPER ISSUE OF THE 2026 MIDTERM ELECTIONS

Yet much of the national debate overlooks what data centers are already delivering to communities across America.

Take Ellendale, North Dakota, a town of 1,100 people. Before Applied Digital's new $11 billion data center development, the town collected roughly $400,000 annually in sales taxes. In the first seven months of 2026 alone, that figure jumped to $3.5 million.

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That revenue is helping the city repave its roads and renovate its senior center. A historic opera house is being restored. For a small town, this kind of investment can transform the community for generations.

And Ellendale is far from alone.

Schools across America are seeing enormous benefits from the data center boom.

In Richland Parish, Louisiana, Meta's massive investment has helped fund an increase in annual teacher bonuses ranging from $10,000 to $50,000.

Think about what that means for a working family. Teachers who have dedicated their careers to educating children are receiving a life-changing financial benefit, while the school district becomes an attractive destination for talented educators.

It's hard to imagine a politician campaigning against higher teacher pay or better schools. Yet those are precisely the kinds of benefits communities stand to lose when development gets blocked.

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The benefits extend to homeowners struggling with the rising cost of living.

In Loudoun County, Virginia, data centers generate 45% of county revenue. That enormous tax base has allowed local officials to cut homeowner property tax rates every year for a decade.

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In neighboring Henrico County, local leaders used data center revenue to fund a $60 million Affordable Housing Trust Fund, helping young families and first-time buyers purchase homes.

At a time when housing affordability is dominating political conversations, building data centers is helping some communities make the American Dream a little easier to achieve.

Electricity prices are another major concern, and understandably so. Families are already struggling with higher utility bills, and the arrival of a major new industrial customer can raise legitimate questions about who pays for new infrastructure.

But the enormous, predictable electricity demand from data centers also creates opportunities to finance new generation and grid investments, spreading infrastructure costs across a larger customer base.

In Georgia, agreements involving new large electricity customers, including OpenAI, are projected to lower residential power bills by $180 annually by 2029.

With the right arrangements in place, the arrival of data centers can mean lower costs for the families already living in these communities.

And the benefits extend well beyond tax revenue and household expenses.

Trade unions have been among the most vocal supporters of data centers because of the good-paying jobs they create. Building these facilities requires years of work for skilled tradesmen, with new projects creating opportunities for the next generation of American workers.

In Baltimore, Maryland, IBEW Local 24 expanded its membership by 50% alongside data center construction. In Luzerne County, Pennsylvania, IBEW Local 163 doubled its ranks following construction of an Amazon data center.

Politicians have spent decades promising to bring back good-paying blue-collar jobs. Here is an industry creating enormous demand for exactly those workers.

Of course, developers have a responsibility to work with residents and local governments to address legitimate concerns. Communities deserve clear answers about electricity costs and water use. They should also understand how the investments taking place in their backyards will benefit local families.

But when data centers are developed responsibly, the economic benefits can be enormous. Communities are rebuilding roads and improving schools. Homeowners are seeing lower tax burdens, and skilled workers are finding new opportunities.

For decades, politicians have campaigned on championing the Forgotten Man and bringing economic opportunity back to communities that have struggled to attract investment.

Now, data centers are delivering billions of dollars in private investment to many of those very places.

We're watching a new industrial boom take shape across America, creating jobs and revitalizing communities that Washington has spent decades promising to help. Before politicians rush to stop it, they ought to take a serious look at what those communities are gaining.

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And they should consider what their constituents stand to lose.

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Feds raid multiple Minnesota autism service providers amid Medicaid fraud investigations

Federal agents raided multiple Minnesota autism service providers Thursday in the latest law enforcement action involving a state already under intense scrutiny over allegations of widespread fraud in taxpayer-funded programs.

The FBI confirmed that federal and state agencies were conducting "court-authorized investigative activity" at multiple locations across Minnesota, including sites in the Twin Cities and Rochester, according to MPR News. Meanwhile, Minnesota Attorney General Keith Ellison's office also confirmed that its Medicaid Fraud Control Unit executed search warrants at Iska Inc. in St. Louis Park and Bright Horizon Therapy in Edina, both of which provide autism-related or other Medicaid-funded services.

The operation involved the FBI, the Department of Health and Human Services Office of Inspector General, IRS criminal investigators, U.S. Postal Inspectors and the Minnesota Bureau of Criminal Apprehension, according to FOX 9 Minneapolis.

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"This is an active investigation, and no further details are available at this time," FBI Minneapolis spokesperson Matt Vogel told MPR News.

Iska Inc. received more than $16.7 million in Medicaid payments between 2018 and 2025, according to state data reviewed by the Minnesota Star Tribune. The business participated in Minnesota's Early Intensive Developmental and Behavioral Intervention program, which provides services to children and young people with autism and has faced increasing scrutiny over fraud allegations.

The latest searches follow a series of enforcement operations targeting suspected fraud in Minnesota's publicly funded programs. In April, federal and state investigators executed 22 search warrants in Minnesota, including at autism service providers and childcare businesses.

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The Justice Department also announced charges against 15 defendants in May in connection with alleged health care fraud schemes involving more than $90 million in intended losses. The cases included an alleged $46.6 million scheme targeting Minnesota's autism intervention program, which DOJ said saw Medicaid claims surge from more than $600,000 in 2018 to more than $400 million by 2025.

The raids come ahead of Vice President JD Vance's planned visit to Minnesota — alongside members of the White House Task Force to Eliminate Fraud — where allegations of public-services fraud have fueled growing questions about oversight. 

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Officials have not announced charges related to Thursday's searches, and the allegations against any individual business remain unproven.

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