By Ginika Igboke
The U.S. Department of Agriculture has suspended all federal food program payments to Minnesota and the city of Minneapolis, escalating a sweeping federal response to what officials describe as systemic fraud and abuse of taxpayer-funded assistance programs across the state.
USDA Secretary Brooke Rollins announced the move Friday, saying federal investigators had uncovered extensive misuse of food assistance funds and a lack of cooperation from state leadership in addressing the problem. The suspension halts roughly $130 million in federal payments until Minnesota and Minneapolis provide comprehensive documentation accounting for how the funds have been spent over the past year.
“Enough is enough,” Rollins said in a public statement, adding that billions of dollars may have been siphoned away by fraudsters. She accused state and local officials of failing to implement adequate safeguards to protect federal dollars and said the pause in funding was necessary to stop further losses while audits and reviews continue.
The funding freeze directly affects programs that serve hundreds of thousands of Minnesotans. More than 440,000 residents—about one in every 13 people in the state—receive monthly benefits through the Supplemental Nutrition Assistance Program, according to the Minnesota Department of Children, Youth, and Families. SNAP alone accounts for nearly three-quarters of all federal food program funding in Minnesota and represents about 7 percent of the total federal funding the state receives annually.
In 2025, Minnesota received an estimated $2.05 billion in federal funds across 52 food-related programs, state figures show. The largest of these include SNAP, the Women, Infants, and Children nutrition program, school lunch and breakfast programs, and the child and adult care food program. Federal officials say weaknesses in oversight across several of these programs have made them vulnerable to exploitation.
Rollins said Gov. Tim Walz’s administration failed to provide USDA with key participant data needed to verify eligibility and prevent fraudulent claims, particularly within SNAP. The dispute has been building for months. In December 2025, Minnesota sued the USDA in an attempt to block a federal directive requiring the state to recertify SNAP recipients.
Minnesota Attorney General Keith Ellison followed with a lawsuit after the USDA ordered the state to conduct in-person eligibility interviews for approximately 100,000 SNAP households by Jan. 15. Ellison argued the requirement violated federal law and placed an undue burden on beneficiaries. Federal officials counter that the interviews are a necessary step to verify eligibility and stem abuse of the program.
As part of Friday’s notice, the USDA ordered state and city officials to submit detailed justifications for all federal food-program expenditures dating back to Jan. 20, 2025. Any future transactions involving federal food assistance funds will also require advance documentation and approval, effectively placing Minnesota under heightened federal oversight.
The funding pause comes amid a broader federal crackdown on alleged fraud in Minnesota. Multiple agencies within the Trump administration are investigating claims involving child care subsidies, day care centers, housing programs, Small Business Administration loans, food assistance, and other social services. Several high-profile cases in recent years have already resulted in indictments and convictions tied to welfare fraud in the state.
Federal officials say the USDA’s action is part of a coordinated effort to protect taxpayers while ensuring that assistance programs serve eligible recipients. Rollins said the suspension would remain in place until Minnesota demonstrates that sufficient controls and transparency measures have been implemented.
“While the full scope of fraud is still being determined, it is clear that federal action is required to prevent further abuse and safeguard taxpayer dollars,” Rollins said in her notice to state and city leaders.
Offices representing Gov. Walz, Minneapolis Mayor Jacob Frey, and the Minneapolis Department of Children, Youth, and Families did not immediately respond to requests for comment.
Original article
Comments