$129 Million Cut Off Without Warning

Man in suit speaking at rally with red hats.

The Trump administration delivered a devastating blow to Minnesota’s Democrat leadership, suspending all federal agricultural funding worth $129 million after uncovering what officials call “industrial-scale fraud” that has bilked taxpayers out of billions.

Story Highlights

USDA immediately suspends all federal financial awards to Minnesota and Minneapolis totaling $129 million
Agriculture Secretary Brooke Rollins cites “massive fraud” involving billions stolen from federal programs
Action stems from notorious “Feeding Our Future” scandal where 78 people were charged in $250 million fraud scheme
Governor Tim Walz announces he won’t seek third term amid mounting fraud investigations
Federal agencies investigating potential links between Minnesota fraud and terrorist financing

Trump Administration Takes Decisive Action Against Fraud

Agriculture Secretary Brooke Rollins announced the immediate suspension of all USDA federal financial awards to Minnesota and Minneapolis, declaring “No more handouts to thieves!” The sweeping action affects over $129 million in active and future awards, marking an unprecedented federal response to what prosecutors have called “staggering, industrial-scale fraud.” Rollins stated funding will remain suspended until Minnesota provides “sufficient proof that the fraud has stopped” and detailed justifications for all expenditures since January 20, 2025.

Billions Lost in Feeding Our Future Scandal

The suspension directly targets the aftermath of the massive Feeding Our Future fraud scheme, where a Minneapolis-based nonprofit exploited COVID-19 pandemic waivers to steal nearly $250 million from USDA child nutrition programs. Federal prosecutors have charged 78 individuals in what became the largest COVID-19 fraud case tied to USDA programs nationwide. The scheme involved fake invoices, falsified attendance records, and fabricated meal distribution data while claiming to serve low-income communities, demonstrating complete disregard for vulnerable populations.

Multi-Agency Investigation Exposes Systemic Corruption

The fraud extends far beyond Feeding Our Future, with Treasury Secretary Scott Bessent and Homeland Security Secretary Kristi Noem launching coordinated investigations into widespread benefits fraud across Minnesota’s social services. ICE agents are conducting a “massive investigation” into childcare fraud schemes, while Treasury has raised alarming concerns that some Minnesota funds may have been diverted to al-Shabab terrorists. This represents a shocking breach of national security that occurred under Democratic leadership’s watch, endangering both taxpayer funds and American safety.

Democratic Leadership’s Failed Oversight Exposed

Governor Tim Walz and Minneapolis Mayor Jacob Frey face intense scrutiny for allowing billions in taxpayer funds to be stolen during their tenure. The USDA letter explicitly holds them accountable for the fraud that occurred “on their watch,” noting their complete lack of adequate oversight or prevention plans. Walz recently announced he will not seek a third term, coinciding with mounting pressure from federal investigations. This represents a stunning failure of Democratic governance that prioritized political correctness over protecting hardworking Americans’ tax dollars from criminal exploitation.

Federal Courts Already Blocking Administrative Overreach

While HHS previously attempted similar funding suspensions for Minnesota childcare programs, a federal judge partially blocked those efforts, ruling the administration cannot arbitrarily withhold certain subsidies and support programs. This legal precedent suggests Minnesota may challenge the USDA suspension in court, potentially creating a prolonged battle over federal funding accountability. The Trump administration’s aggressive stance represents a necessary correction after years of Democratic mismanagement, though legal challenges may complicate swift resolution of the fraud crisis plaguing Minnesota’s social services system.