USDA becomes latest federal agency to suspend financial assistance for Minnesota over fraud

Agriculture Secretary Brooke Rollins announced Friday that her department is suspending all federal funding for Minnesota over the fraud scandal that has engulfed the state, making the Department of Agriculture the latest to pause its funding.

The Minnesota state government has been accused of allowing widespread fraud schemes to infiltrate publicly funded programs, such as the Supplemental Nutritional Assistance Program, with thieves stealing millions of taxpayer dollars.

The Trump administration is investigating the fraud allegations, including the Small Business Administration, which is investigating alleged fraud in the state's Payment Protection Program and Economic Injury Disaster Loans program.

"Enough is enough," Rollins posted on X. "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.

"Today, USDA is SUSPENDING FEDERAL FINANCIAL AWARDS to Minnesota and Minneapolis, effective immediately, until sufficient proof has been provided that the fraud has stopped," she continued. "No more handouts to thieves! Time to drain the Minnesota swamp and put American taxpayers first."

The move comes after the Health and Human Services Department paused its funding for the state last month over allegations that the state has allowed taxpayer dollars to go to fraudulent daycare centers statewide.

Minnesota Democratic Gov. Tim Walz has acknowledged that fraud is rampant in his state and said he is committed to cracking down on the crimes. At the same time, he said he was suspending his reelection campaign.

Misty Severi is a news reporter for Just The News. You can follow her on X for more coverage.