USDA Suspends $129M in Minnesota Awards Citing Widespread Fraud
USDA Secretary Brooke Rollins suspended more than $129 million in federal awards to Minnesota, citing alleged widespread fraud and demanding spending justifications within 30 days.
Overview
USDA Secretary Brooke Rollins announced suspension of all active and future USDA awards totaling just over $129 million to Minnesota and Minneapolis, citing systemic fraud.
Rollins demanded Minnesota Governor Tim Walz and Minneapolis Mayor Jacob Frey provide payment justifications for federal spending from Jan. 20, 2025, onward within 30 days.
Investigations center on schemes including Feeding Our Future — accused of diverting roughly $250 million — and alleged fraud at daycares, housing programs, and SNAP recertification issues.
Minnesota officials condemned the suspension; Attorney General Keith Ellison vowed litigation, while Minneapolis called the move politically motivated and harmful to needy residents.
The action follows FBI and DOJ efforts, courtroom rulings protecting some benefits, and President Trump’s rhetoric targeting Somali communities amid intensified federal fraud crackdowns.
Analysis
Center-leaning sources present this reporting as neutral: they attribute strong claims to specific officials, include opposing responses (Ellison, Walz, Minneapolis), and avoid unqualified evaluative language. Coverage foregrounds official actions and context (DOJ, Treasury task force) while leaving allegations framed as such, not editorial judgment.
Sources (9)
FAQ
The suspension covers **all active and future USDA financial awards to Minnesota and Minneapolis**, totaling just over **$129 million**, which may affect programs funded through USDA such as nutrition assistance and agriculture-related grants until the state provides spending justifications and the USDA determines the fraud has been addressed.
Feeding Our Future is a Minneapolis-based nonprofit accused of defrauding U.S. taxpayers of **nearly $250 million** in USDA-funded child nutrition money during the COVID-19 pandemic by submitting fake invoices and attendance records, and the USDA cites this case as the **most notable example** of the “staggering, industrial-scale fraud” underlying its decision to suspend awards to Minnesota.
Minnesota officials, including Attorney General **Keith Ellison**, have condemned the move as harmful to residents, with Ellison saying he will **challenge the suspension in court**, while Minneapolis officials have described the action as politically motivated.
USDA Secretary Brooke Rollins has ordered Governor Tim Walz and Mayor Jacob Frey to provide **payment justifications for all USDA-related federal spending from January 20, 2025, onward within 30 days**, and indicated that future payments will require such justifications until the agency is satisfied the fraud has stopped.
Yes, Rollins’ letter also cites alleged fraud in **daycare centers**, **housing stabilization services**, and issues involving **SNAP and other social services programs**, which together with Feeding Our Future form the broader pattern of alleged “wide-reaching” fraud driving the federal crackdown.
History
4 sources