USDA Suspends $130 Million in Funding to Minnesota and Minneapolis

The U.S. Department of Agriculture (USDA) announced on Friday that it will halt approximately $130 million in financial assistance to Minnesota and Minneapolis, citing “widespread and systematic fraud.” Secretary Brooke Rollins shared this decision publicly.

Rollins expressed her frustration in a letter to Minnesota Governor Tim Walz and Minneapolis Mayor Jacob Frey, mentioning, “Enough is enough!” She referred to previous findings from the Trump administration that revealed significant fraud within the state, where billions were misappropriated by fraudsters.

In her letter, Rollins pointed to the $250 million scandal known as “Feeding Our Future,” where funds intended to aid low-income children during the pandemic were stolen. “This scheme involved USDA resources designed to feed hungry kids under various food programs,” she elaborated. Reports indicate that by late November, 78 individuals had faced charges in what is considered the largest COVID-related fraud case in the country.

Rollins accused both Walz and Frey of failing to hold accountable those responsible for such frauds, even claiming that their critics label concerns about fraudulent activities as “racist.”

In a significant step, Secretary Rollins informed Democratic officials that all present and future funding awards to the state and city will be suspended “immediately.”

She has also demanded that Walz and Frey provide the USDA with justification for any federal expenditures made since January 20, 2025, within 30 days.

Additionally, various federal agencies, including the Small Business Administration and the Department of Health and Human Services, are taking measures to freeze funding to Minnesota as they investigate the extent of fraud affecting the state. Interestingly, HHS’s attempt to suspend $10 billion in funds to Minnesota and a few other Democratic-led states faced a temporary halt from a federal judge this past Friday.