The Trump administration has moved to suspend a substantial tranche of federal funding destined for the state of Minnesota, citing ongoing investigations into alleged large-scale fraud. The decision, which targets $129 million in benefit payments, was communicated directly to the state's governor and has sparked immediate political and legal backlash.
Official Notification and Justification Demanded
In a letter shared on social media, the US Secretary of Agriculture, Brooke Rollins, formally notified Minnesota's Governor Tim Walz and Minneapolis Mayor Jacob Frey of the suspension. Rollins accused their administrations of refusing to provide basic information or implement measures to stop what she described as a "staggering, wide-reaching fraud scandal."
The USDA has demanded that the state provide full justification for all federal spending since 20 January 2025 within a 30-day window. Furthermore, the department has mandated that all future federal payments to Minnesota will require the same level of pre-approval justification.
State and Local Officials Push Back
The response from Minnesota officials was swift and defiant. A spokesperson for Minneapolis, Brian Feintech, stated the city was assessing the impact of what he called a "blanket cut to funding meant for residents most in need." He accused the Trump administration of making Minneapolis its latest target, willing to harm Americans for perceived political gain.
More forcefully, Minnesota's Attorney General, Keith Ellison, publicly responded on X, writing: "I will not allow you to take from Minnesotans in need. I’ll see you in court."
A Pattern of Targeting and Xenophobic Rhetoric
This action is the latest in a year-long focus by the Trump administration on Minnesota, with particular attention on its Somali American community. Federal prosecutors have estimated that as much as $9 billion has been stolen in schemes allegedly linked to the state's Somali population.
In November 2025, President Trump ended legal protections for Somali migrants in Minnesota, claiming "Somali gangs are terrorizing the people" and billions were missing. He followed this with xenophobic remarks in a cabinet meeting, targeting both Somalis and US Congresswoman Ilhan Omar, a Somali-American representing Minnesota, whom he referred to as "garbage."
The FBI, under Director Kash Patel, announced in December 2025 it was deploying extra resources to dismantle fraud schemes in the state, having already secured convictions in a $250 million case involving pandemic-era child food aid.
Political Fallout and Broader Context
The funding freeze coincides with a separate federal court ruling that blocked the administration from withholding childcare subsidies from Minnesota and four other Democratic-led states. The political pressure appears to have taken a toll; Governor Walz recently announced he would not seek a third term, acknowledging that Trump and his allies had exploited the fraud crisis to sow division.
"I won’t mince words here," Walz said. "Donald Trump and his allies – in Washington, in St Paul and online – want to make our state a colder, meaner place." The stage is now set for a protracted legal and political battle over the suspended funds and the allegations underpinning the administration's decision.
