USDA Halts All Federal Funding to Minnesota Amid Massive Fraud Scandal

The Trump administration is done playing games in Minnesota.

On Friday, USDA Secretary Brooke Rollins delivered a bombshell announcement: all federal funding to the State of Minnesota and the City of Minneapolis is being immediately suspended, citing massive corruption, fraudulent abuse of welfare programs, and complete failure by Democrat leaders to stop the bleeding.

“Enough is enough,” Rollins wrote in a scathing letter to Governor Tim Walz and Minneapolis Mayor Jacob Frey. “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.”

The suspension halts all awards through the Child and Adult Care Food Program and the Summer Food Service Program, two programs used as vehicles in the infamous $250 million Feeding Our Future scam, where fake charities exploited COVID relief funds by claiming to feed nonexistent children. Seventy-eight people have already been charged, and the scandal is far from over.

Rollins didn’t mince words “No more handouts to thieves! Time to drain the Minnesota swamp and put American taxpayers first.”

And it’s not just the USDA stepping in.

Dr. Mehmet Oz, Administrator of the Centers for Medicare & Medicaid Services (CMS), warned earlier this week that Medicaid payments to the state may also be in jeopardy. CMS has launched audits and will begin deferring payments tied to suspected fraud and waste in Minnesota’s bloated welfare system.

“The more we uncover, the more it becomes clear: it’s much worse than we were led to believe by state government officials,” Dr. Oz said in a video message.

This is no minor clerical error. This is systemic, entrenched fraud allowed to fester under Governor Tim Walz, who announced recently that he will not seek a third term. His excuse? Blaming Trump, of course.

“Donald Trump and his allies… want to make our state a colder, meaner place,” Walz said in a self-pitying statement that failed to acknowledge his role in one of the biggest welfare scandals in modern U.S. history.

Meanwhile, Minnesota Attorney General Keith Ellison whose office has failed to prevent any of this vowed to sue the federal government. But as Ellison grandstands, Minnesotans are demanding accountability, not more deflection.

To date, at least 95 individuals have been charged in connection with overlapping scams ranging from fraudulent autism clinics to COVID daycare schemes, and many of the operations appear to have links to non-citizen networks and offshore financial activity.

As part of the response, the Trump administration has surged 3,000 federal officers including ICE, Border Patrol, and DHS investigators into the Minneapolis-St. Paul area to root out criminal networks and restore order.

The City of Minneapolis, in a weak attempt to spin the situation, claimed in a statement that the cuts would hurt residents “most in need” and accused the Trump administration of targeting the city for “political gain.” But the facts are simple:

• Federal funds meant to feed children were stolen.

• The state government failed to stop it.

• The Trump administration stepped in to protect American taxpayers.

This is not about politics it’s about law, order, and leadership. And if Governor Walz and his allies think they’re the victims here, they’re more delusional than anyone thought.

Fraud has consequences. And Minnesota is learning that the hard way.

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