In an extraordinary and unprecedented move, the United States Department of Agriculture has suspended all federal financial awards to the state of Minnesota and the city of Minneapolis, citing massive, systemic fraud — and sending shockwaves through a state already grappling with an avalanche of public corruption scandals.
At the heart of this sweeping decision is the now-infamous Feeding Our Future fraud case, in which 78 individuals were charged for their roles in siphoning off COVID-era funds meant for feeding low-income children. The scheme, dubbed one of the largest pandemic relief frauds in the nation, exploited USDA programs such as the Child and Adult Care Food Program and the Summer Food Service Program, according to a letter sent by USDA Secretary Brooke Rollins.
"Enough is enough!" Rollins declared in bold terms. “The Trump administration has uncovered MASSIVE fraud in Minnesota and Minneapolis—billions siphoned off by fraudsters. And those in charge have ZERO plan to fix it.”
Effective immediately, the USDA has halted funding, citing not only past fraud but a lack of accountability and transparency from state and city leadership. “No more handouts to thieves,” Rollins wrote. “Time to drain the Minnesota swamp and put American taxpayers first.”
This announcement is only the latest in a growing federal crackdown on alleged systemic fraud in Minnesota, with Medicaid spending also under new scrutiny. Dr. Mehmet Oz, now heading the Centers for Medicare & Medicaid Services, echoed the administration’s urgent tone in a separate statement earlier this week: “The more we uncover, the more it becomes clear: it’s much worse than we were led to believe.”
Already, 95 individuals have been charged in a slew of fraud cases ranging from false medical claims to inflated child care reimbursements. The political fallout has been swift. Governor Tim Walz, facing mounting pressure and accusations of oversight failure, has announced he will not seek a third term. In his statement, Walz attempted to reframe the crisis as a politically motivated attack, claiming, “Donald Trump and his allies... want to take away much of what makes Minnesota the best place in America to raise a family.”
Meanwhile, the federal government is doubling down. Fox News reports that an additional 1,000 Border Patrol agents are being deployed to the Twin Cities to assist with ongoing fraud investigations. That surge supplements the already 2,000 federal agents currently operating in the area, signaling a sustained and expanding effort to bring Minnesota’s alleged fraud networks to heel.
The City of Minneapolis issued a terse response to media outlets, stating they were “communicating with State partners to understand the impacts,” but it did little to clarify how services for vulnerable residents will be maintained in the absence of federal funds.
Minnesota Attorney General Keith Ellison struck a defiant tone, vowing legal retaliation against the USDA. “I will not allow you to take from Minnesotans in need,” he said in a statement on X. “I’ll see you in court.”