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Home » USA Politics » Minnesota Federal Funding Halted Over Allegations of Fraud
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USA Politics

Minnesota Federal Funding Halted Over Allegations of Fraud

January 10, 20264 Mins Read
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Minnesota Federal Funding Halted Over Allegations of Fraud
Related:Tim Walz announces he won't run for third term as Minnesota governor
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Agriculture Secretary Brooke Rollins has announced that her agency is “suspending federal financial awards” to Minnesota and Minneapolis, citing evidence of “fraud” found by the Trump administration.

Rollins a letter on Friday addressed to Minnesota Governor Tim Walz and Minneapolis Mayor Jacob Frey, announcing the suspension of “all active awards and any future awards from USDA to the State of Minnesota and the City of Minneapolis, currently totaling over $129.18 million.” Rollins said the suspension will last “until sufficient proof has been provided that the fraud has stopped.”

She also instructed Minnesota officials to “provide the USDA with payment justifications for all federal dollar expenditures from January 20, 2025, to present” within 30 days. The Independent has contacted Walz for comment.

A spokesperson for Minneapolis stated that officials are “communicating with state partners to understand the impacts of such a blanket cut to funding meant for residents most in need.”

Agriculture Secretary Brooke Rollins announced she’s suspending ‘federal financial awards’ to Minnesota and Minneapolis (Getty Images)

“What’s abundantly clear is that Minneapolis is the latest target of the Trump administration — willing to harm Americans in service to its perceived political gain,” said a city spokesperson told The Independent.

The Independent has also contacted USDA for more details about which programs will be affected by this suspension.

This decision follows shortly after an Immigration and Customs Enforcement agent named Jonathan Ross shot and killed 37-year-old Renee Nicole Good in Minneapolis. Protests have erupted since then in Minneapolis and other cities across America including Boston, New York, and Washington D. C.

In a social media announcement regarding her decision, Rollins mentioned that Trump’s administration has “uncovered massive fraud” and claimed that “those in charge have ZERO plan to fix it.”

Rollins noted in her letter that “numerous non-profits and businesses have defrauded federal government” while Walz and Frey have been serving. She specifically pointed out the Feeding Our Future fraud scandal that came into light back in 2022.

Dozens have faced convictions linked with this scheme which prosecutors say involved stealing millions from a federally funded program intended for feeding children during COVID-19 pandemic. The Justice Department described it as one of America’s largest COVID-19 fraud schemes. In March, Walz expressed his anger towards “criminals that preyed on a system meant for feeding children.”

This comes as federal authorities claim they’re looking into alleged widespread social services fraud occurring in Minnesota.

Last week Homeland Security Secretary Kristi Noem stated ICE agents were “conducting a massive investigation on childcare and other rampant fraud.” Treasury Secretary Scott Bessent also introduced several initiatives “to combat rampant government benefits fraud” within Minnesota last Friday.

A month ago Walz welcomed any assistance needed fighting against fraud in his state.

“You commit fraud in Minnesota; you’re going prison. I don’t care what color you are or what religion you follow. Anyone wanting help with this matter is welcome,” he said during that time.

This Monday Walz declared he would not seek re-election after weeks filled with rising concerns about possible fraud schemes within his state. While he’s faced criticism from Trump’s administration regarding these scandals he hasn’t been accused of any wrongdoing himself.

The Trump administration had earlier paused federal funds directed at child care subsidies along with other social services across five states led by Democrats including Minnesota just this week. These states filed lawsuits which resulted in temporary blocking order issued by federal judge allowing funds continue flowing while legal matters unfold.


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