The arrest of former Venezuelan President Nicolás Maduro has reopened debate over whether the country’s long-isolated economy could soon re-engage with global markets, but analysts caution that sanctions relief and recovery are far from guaranteed.

Venezuela is among the world’s most heavily sanctioned countries, alongside Russia, Iran, Syria, North Korea and Cuba, a status that has severely restricted its access to international finance and trade.

Andres Martinez-Fernandez, a senior policy analyst at the Heritage Foundation’s Allison Center for National Security, warned that lifting those sanctions now would be premature, saying Maduro’s removal has not yet translated into meaningful institutional change.

‘It would be a mistake for any nation to remove sanctions on Venezuela at this moment,’ Martinez-Fernandez said, noting that ‘the remnants of the Maduro regime remain in control of key institutions in Venezuela and have not yet made commitments to a transition that would fully halt the threat posed to the United States and restore stability and democracy to Venezuela.’

‘Maduro’s arrest opens up a path for sanctions to press the regime toward a necessary transition,’ he added, saying that ‘premature removal of this pressure would send the wrong message to Caracas.’

His comments reflect concerns among U.S. policymakers that Venezuela’s military, courts, central bank and state oil company remain dominated by officials appointed under Maduro, many of whom are still sanctioned by Washington. That reality complicates hopes that Maduro’s capture could quickly unlock Venezuela’s oil sector or stabilize an economy that has been in prolonged decline.

At the same time, energy experts say that even if sanctions remain in place, uncertainty over who now controls Venezuela’s economic levers is already weighing on prospects for oil production and exports — the country’s primary source of revenue.

David Goldwyn, chair of the Atlantic Council Global Energy Center’s Energy Advisory Group, said markets are still operating in the dark.

‘For now, we have no details about how these fiscal and legal arrangements will evolve,’ Goldwyn said. ‘Until there is clarity on sanctions and licensing and more information on who is actually managing the central bank and ministry of finance, the prospects for Venezuelan oil production and exports will remain uncertain.’

That uncertainty is compounded by the condition of Venezuela’s energy sector itself.

Julia Buxton, a law professor at Liverpool John Moores University, told Fox News Digital that ‘the national oil infrastructure is devastated and will require billions in investment to fix.’

‘There are ongoing legal claims that need to be settled, including compensation claims for expropriation and non-payment of Venezuelan oil bonds,’ added Buxton, who is also a regional head at Oxford Analytica, a Dow Jones–owned geopolitical analysis and advisory firm, covering Venezuela.

Those liabilities, Buxton said, could further complicate efforts to attract foreign capital or restart large-scale oil production, underscoring that Maduro’s capture alone is unlikely to deliver a quick economic turnaround.

Venezuela once had all the makings of an economic powerhouse, with a lengthy Caribbean Sea coastline and abundant petroleum, natural gas and mineral resources.

What remains is a much smaller, debt-laden one.

While precise figures are difficult to verify since Venezuela has not published comprehensive debt statistics in years, the International Monetary Fund estimates the country’s economy will total about $82.8 billion in 2025. Debt levels, however, stand at nearly 200% of that total, meaning Venezuela owes nearly two dollars for every dollar it produces.

Venezuela holds some of the world’s largest proven oil reserves, but years of underinvestment, corruption, sanctions and infrastructure decay have slashed output. 

Even as some investors and energy companies see Maduro’s capture as an opening for renewed engagement, Goldwyn said uncertainty over who controls state finances and oil policy continues to weigh on prospects.

Martinez-Fernandez said sanctions relief could eventually follow, but only if Venezuela’s leadership demonstrates ‘concrete, irreversible steps’ toward political and institutional reform.

‘Once those commitments and concrete, irreversible steps are taken in Venezuela,’ he said, ‘I imagine a drawing down of U.S. economic and military pressure would follow.’

For now, U.S. officials and energy markets alike remain focused less on Maduro’s fate than on whether Venezuela’s leadership can translate a moment of upheaval into durable political and economic change.

A major state audit in Minnesota conducted by the nonpartisan Office of the Legislative Auditor found widespread failures and internal control problems in the Department of Human Services’ Behavioral Health Administration (BHA) grant program, reaffirming concerns about massive fraud issues.

The report, released on Monday, found that between July 1, 2022, and Dec. 31, 2024, DHS dished out more than $425 million in grants to 830 organizations, the majority being nongovernmental, and did not show proper oversight in watching over those taxpayer funds, which in many cases were meant to help those with addiction and mental health issues.

The audit found missing progress reports and discovered BHA could not show it had completed all required monitoring visits and had no documentation at all for some of them. 

Additionally, auditors discovered what appeared to be backdated or newly created documentation that did not exist before the audit, suggesting an effort to retroactively manufacture paperwork to show compliance.

In one instance, the report found that a grant manager approved over $600,000 in payments and later left the government agency to work for the grantee.

‘The OLA report shows a complete breakdown in how DHS’s Behavioral Health Administration manages hundreds of millions in taxpayer-funded grants,’ Republican State Sen. Mark Koran said in a press release. ‘BHA failed to verify that grantees were providing the services they were paid for, failed to put basic financial controls in place, and then created documentation after the fact to mislead auditors.

‘Minnesotans deserve integrity from state agencies. Fabricating evidence after an audit begins is unacceptable. It obstructs the OLA’s work and prevents DHS from correcting its failures. The finding that a DHS manager approved a large grant and later became a paid consultant for that same grantee is a blatant conflict of interest. This kind of misconduct erodes public trust and undermines the effectiveness of grant programs.’

The audit also found that when employees were surveyed, 73% of them said they did not receive the necessary training to properly administer manage grants, with one employee saying, ‘Executive leadership has repetitively shown staff that they won’t take the staff’s concerns or questions seriously until something serious happens or it makes the news.’

Minnesota’s government agencies are already under heavy scrutiny amid a fraud scandal that prosecutors say could total as much as $9 billion and has already forced Gov. Tim Walz to drop his re-election bid.

‘Today’s shocking report by the Legislative Auditor shows a culture of pervasive fraud, negligence, and deception,’ Republican House Speaker DeMuth said about the report.

‘We need answers immediately about the apparent backdating and potential falsification of documents found during the audit…It’s time to clean house and restore honesty and accountability in state agencies.’

Ultimately, the report concluded that the state government ‘did not comply with most requirements tested for mental health and substance use disorder grants and did not have adequate internal controls over grant funds.’

‘The audit makes clear that DHS leadership has failed at every level. Employees were not properly trained, oversight was ignored, and accountability was missing, from Governor Walz, to Temporary DHS Commissioner Gandhi, to BHA managers. DHS needs a full reset, starting with leadership, training, ethics, and oversight,’ Koran said in the press release.

The report was immediately picked up on social media, including from an account on X run by hundreds of anonymous DHS staff members.

‘Yes, MN DHS will falsify documents and data. Worst of all, they do it to state legislature to demand more state funding,’ Minnesota Staff Fraud Reporting Commentary posted on X. ‘And yes, MN DHS has lied to federal government. So.. fire Shireen Gandhi.’

‘Minnesota’s Legislative Auditor just dropped a BOMBSHELL,’ Townhall columnist Dustin Grage posted on X. ‘Tim Walz’s DHS fabricated records, had zero internal controls, and employees ignored oversight on more than $400 MILLION in grants. The fraud and corruption continues.’

Fox News Digital reached out to Walz’s office for comment.

Gandhi, the acting DHS commissioner, said on Monday that the ‘findings provide us with a roadmap for our focus going forward to continue strengthening oversight and integrity of behavioral health grants.’

‘I take the report seriously, I accept responsibility for the findings.’

The Trump administration is taking aim at ultra-processed foods while reversing long-held U.S. government stances on red meat and saturated fats.

‘The Trump administration is now updating federal nutrition standards and guidelines to ensure that Americans have the most accurate, data-driven information supported by science and hard facts, not special interests or partisan ideology,’ White House Press Secretary Karoline Leavitt told reporters.

Leavitt said that the guidelines would impact what is served in public schools, what American servicemembers eat and what food is distributed through government programs.

‘Faulty dietary guidelines of the past stack the deck against healthy eating and food options for everyday American families, which has fueled the chronic disease epidemic and jacked up the health care costs of households across the country,’ Leavitt added. ‘When these guidelines are followed, Americans will be saving themselves thousands of dollars. If we want to cut health care costs in our country, we must become a healthier country… A healthier America will lead to a more affordable America.’

The Department of Health and Human Services (HHS) announced the new guidelines with an updated, inverted food pyramid. The top of the pyramid, which is now the wider part of the structure, is built on meat, fats, fruits and vegetables, while whole grains are at the narrow bottom.

HHS Secretary Robert F. Kennedy Jr. has made overhauling the U.S. food supply a crucial focus of his ‘Make America Healthy Again’ (MAHA) agenda, which is aimed at addressing chronic disease and childhood illnesses. The secretary has argued that the nation’s food practices have harmed Americans and led to skyrocketing healthcare costs.

‘The new guidelines recognize that whole, nutrient-dense food is the most effective path to better health and lower health care costs,’ Kennedy said. ‘Protein and healthy fats are essential, and were wrongly discouraged in prior dietary guidelines. We are ending the war on saturated fats.’

The HHS secretary railed against refined carbohydrates, food additives and added sugar, highlighting the health risks associated with sugar-sweetened beverages. Kennedy’s main message to Americans was to ‘eat real food.’

Kennedy framed the issue as not only one about health, but also one of national security.

‘If a foreign adversary sought to destroy the health of our children, cripple our economy, to weaken our national security, there would be no better strategy than to addict us to ultra-processed foods,’ he said.

Agriculture Secretary Brooke Rollins also joined the briefing. She praised Secretary Kennedy’s work and highlighted the role that farmers would play in making America healthy again.

‘We are finally putting real food back at the center of the American diet. Real food that nourishes the body, restores health, fuels energy and builds strength,’ Rollins said. ‘This pivot also leans into the abundant, affordable and healthy food supply already available from America’s incredible farmers and ranchers. By making milk, raising cattle, and growing wholesome fruits, vegetables, and grains, they hold the key to solving our national health crisis.’

FDA Commissioner Dr. Marty Makary emphasized the harm that old guidelines did to the health of everyday Americans. He noted that protein guidelines in particular were far too low for America’s children.

‘We have 40% of our kids now with a chronic disease. It is not their fault. This is something that is the result of bad advice from the government and a medical establishment that for decades peddled research from a flawed 1960s model,’ Makary said. ‘This is not a willpower problem for our nation’s kids. This is something adults have done to kids, and we’re going to fix it.’

Makary agreed with Centers for Medicare & Medicaid Services Administrator Dr. Mehmet Oz that the best way for the U.S. to reduce drug spending is for Americans to focus on diet and health with the goal of not taking medications that they do not need.

The new guidance comes in stark contrast to the Dietary Guidelines Advisory Committee’s report released in the final days of President Joe Biden’s term, which garnered criticism over a lack of directives on ultra-processed foods.

This is a developing story. Please check back for updates.

The No. 3 leader in the House of Representatives is arguing that Minnesota Gov. Tim Walz could be leaving office earlier than he intended, even after the progressive refused to resign over alleged widespread fraud in his state.

‘I think perhaps this is a lot deeper, a lot larger than we knew,’ Emmer told Fox News Digital on Wednesday. ‘Tim should do the right thing and resign. And if he doesn’t, I think he might be leaving the offices in cuffs.’

Federal prosecutors are investigating accusations of fraud within Minnesota’s social programs, with a significant amount of scrutiny on the state’s Somali community.

U.S. attorneys have alleged that as much as $9 billion in state and federal funding could have fallen prey to fraud, an estimate that Walz and other state Democratic leaders have said is overblown.

Walz said during a press conference on Tuesday that he would not resign over the scandal, telling reporters when asked, ‘Over my dead body will that happen.’

The enhanced media scrutiny did push Walz to drop his bid for a third term as governor, however.

Asked about his refusal to resign, Emmer said, ‘This guy has got to stop acting like a coward, and he’s got to start taking accountability for the fact that he is completely incompetent, and perhaps even complicit, in one of the most breathtaking fraud examples that we’ve ever seen.’

‘Tim Walz, he said he was running for a third term and that he was going to fight for Minnesota. And then what he did was, he said, ‘Well, I’m not going to run for a third term anymore, but I’m going to fight for Minnesota.’ And he came out the next day, had to have a press conference to say he wasn’t resigning,’ Emmer said. ‘It’s just wild. He’s coming unglued.’

Walz said he was ‘accountable for this’ as the top state official during his press conference on Tuesday, while also criticizing Republicans’ response to the matter.

‘Republicans want to tell you everybody with brown skin is stealing money or that they’re not welcome here. They want to do nothing to improve this state. Their idea of improving this state is being a parrot for Donald Trump, agreeing to everything that he agreed with,’ he said.

‘Right now they are hiding behind a veil of innuendo. They’re protecting the biggest fraudster in the White House.’

The Department of Justice (DOJ) announced last month it had charged six people for ‘participating in schemes to defraud the government in the Autism fraud scheme and the Housing Stabilization Services (HSS) fraud scheme.’

Federal prosecutors also charged multiple people last year with stealing more than $240 million from the Federal Child Nutrition Program through the Minnesota-based nonprofit Feeding Our Future.

Fox News Digital reached out to Walz’s office for a response to Emmer’s comments.

China on Tuesday banned exports of goods that could be used for military purposes to Japan, a move that escalates tensions between Beijing and a key U.S. ally as disputes intensify over Taiwan.

The Chinese Commerce Ministry said in a statement that any items that have a dual use — civilian and military — would no longer be exported to Japan. 

The government did not offer specifics on which items would be included in the ban. But state-affiliated media said Beijing was considering whether to include rare-earth minerals.

Japanese leaders have increasingly linked Taiwan’s fate to Japan’s own security, with Japan’s Prime Minister Sanae Takaichi warning that a Chinese move against the island could amount to a ‘survival-threatening situation’ for Japan — a legal threshold that could permit military action under Japan’s self-defense laws.

In his New Year’s address, Chinese President Xi Jinping called the ‘reunification’ of China and Taiwan ‘unstoppable.’ His remarks came days after China concluded live-fire drills to simulate a blockade of the island. 

The export crackdown echoes a 2010 episode when China halted rare-earth exports to Japan for nearly two months during a territorial dispute.

The rare earths dispute became an early example of China’s willingness to weaponize trade, prompting U.S. and allied defense planners to reassess how deeply military supply chains depended on Beijing. The episode accelerated efforts to diversify sourcing, though China remains a dominant player in several critical sectors.

China controls roughly two-thirds of global rare-earth mining and the vast majority of processing capacity, a dominance that prompted the Trump administration to push to diversify supply chains and revive domestic production as a national security priority.

For years, Washington had largely left rare earths to the market, even as U.S. mines closed and production migrated to China.

The Trump administration broke with decades of hands-off policy by using Pentagon funding and emergency authorities to support MP Materials at California’s Mountain Pass mine, one of the first direct U.S. government interventions to restore rare earth processing capacity seen as critical to modern weapons systems.