The Trump administration has decided to suspend $129 million in federal benefit payments to Minnesota, citing allegations of widespread fraud within the state. This decision was communicated through a letter from Brooke Rollins, the secretary of the U.S. Department of Agriculture (USDA), directed to Governor Tim Walz and Minneapolis Mayor Jacob Frey. Rollins expressed concerns regarding the state’s response to a significant fraud scandal linked to local non-profits and businesses.
In her correspondence, Rollins asserted that despite the extensive nature of the alleged fraud, Minnesota’s leadership has neither provided necessary information nor undertaken appropriate measures to mitigate the situation. As a consequence, she has demanded justification for all federal expenditures from January 20, 2025, to the present within a 30-day timeframe, stating that future federal disbursements to the state will also require similar scrutiny.
Minneapolis spokesperson Brian Feintech responded to the suspension, highlighting concerns about the impact of such funding cuts on residents who rely on these benefits. He indicated that the decision appears to be politically motivated, calling it a “target” on Minneapolis by the Trump administration, which he suggests prioritizes political advantage over the welfare of its citizens.
Minnesota’s Attorney General, Keith Ellison, publicly condemned the administration’s actions, vowing to challenge the funding suspension in court to protect those in need. His remarks underscore the tension between state leadership and the federal government amidst the ongoing fraud investigations, which have reportedly targeted the state’s Somali community. Federal authorities estimate that as much as $9 billion may have been misappropriated through fraudulent schemes associated with this population.
The administration’s stance follows a significant legal ruling that allows federal funding for childcare subsidies and other support programs for low-income families in Minnesota and four other Democratic-led states to continue. Nevertheless, amidst these developments, Trump’s previous statements have drawn criticism for their xenophobic undertones, particularly regarding the Somali-American community and local representative Ilhan Omar.
In related news, Governor Walz recently announced that he would not seek re-election amid growing scrutiny regarding his handling of fraud investigations in the state. He acknowledged the divisive tactics employed by Trump and his allies in light of the crisis. This political maneuvering exemplifies the continued conflict between state and federal entities as they navigate issues of fraud, community welfare, and political allegiances.