The Trump administration on Friday reportedly moved to cut off all federal funding to the state of Minnesota and the city of Minneapolis, citing widespread fraud and what officials described as a complete failure by state and local leaders to stop the abuse of taxpayer dollars.
In a letter sent to Minnesota Gov. Tim Walz and Minneapolis Mayor Jacob Frey, U.S. Department of Agriculture Secretary Brooke Rollins pointed to the $250 million Feeding Our Future fraud case as a central reason for the decision. That investigation led to 78 people being charged in a scheme involving a fake children’s meal charity that exploited COVID-era federal programs.
According to the letter, the fraud abused two major USDA programs: the Child and Adult Care Food Program and the Summer Food Service Program. Rollins said the scale of the misconduct, combined with a lack of meaningful corrective action, left the federal government with no choice but to act.
“Enough is enough!” Rollins wrote. “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.” She said the USDA is suspending all federal financial awards to Minnesota and Minneapolis effective immediately, and that funding will not resume until officials provide proof that the fraud has been stopped.
“No more handouts to thieves!” Rollins added. “Time to drain the Minnesota swamp and put American taxpayers first.”
The funding cutoff is part of a broader effort by the Trump administration to crack down on fraud in Minnesota, particularly involving public assistance programs. Federal officials have increasingly focused on Medicaid as concerns continue to mount.
Mehmet Oz, administrator of the Centers for Medicare & Medicaid Services, said earlier this week that ongoing reviews have revealed problems far deeper than previously acknowledged by state officials. In a video posted to X, Oz said the federal government will begin auditing Medicaid receipts and delaying payments on claims tied to fraud, waste, and abuse.
“The more we uncover, the more it becomes clear: it’s much worse than we were led to believe by state government officials,” Oz said.
The growing list of fraud scandals has already resulted in 95 people being charged across multiple cases, including Feeding Our Future and a separate autism treatment fraud scheme. The fallout from those cases contributed to Walz’s decision not to seek a third term as governor.
In announcing his decision, Walz accused President Donald Trump and his allies of deliberately targeting Minnesota. “I won’t mince words here,” Walz said. “Donald Trump and his allies want to make our state a colder, meaner place.” He argued the administration was using federal funding as a political weapon and claimed programs meant to help families were being unfairly targeted.
Beyond the fraud investigations, Minnesota remains under intense national scrutiny following an ICE-involved shooting in Minneapolis earlier this week. Fox News has reported that an additional 1,000 Border Patrol agents are being deployed to the Minneapolis–St. Paul metropolitan area, adding to roughly 2,000 federal officers already operating there. The added manpower is intended to allow Homeland Security Investigations agents to continue probing fraud concerns while maintaining enforcement operations.
Administration officials have made clear that the funding freeze will remain in place until Minnesota and Minneapolis demonstrate that systemic fraud has been brought under control, signaling a hard line from Washington as federal authorities press forward with oversight and enforcement.
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