The administration of U.S. President Donald Trump has decided to suspend $129 million in federal funding for the state of Minnesota, citing what it describes as a major fraud scandal within the state.
The decision was announced by U.S. Secretary of Agriculture Brooke Rollins, who shared a formal letter addressed to Minnesota Governor Tim Walz and Minneapolis Mayor Jacob Frey. In the letter, Rollins accused local and state authorities of failing to take adequate action to prevent fraud involving nonprofit organizations and private businesses.
She warned that any future federal payments to Minnesota will require full justification, stating:
“The Trump administration refuses to allow this fraud to continue,” Rollins wrote, as quoted by The Guardian.
The move has triggered strong backlash in Minnesota. Minneapolis city spokesperson Brian Feintech said the funding suspension would harm the state’s most vulnerable residents, describing the decision as a politically motivated attack on the city.
Minnesota Attorney General Keith Ellison also reacted publicly, announcing plans to challenge the decision in court.
“I will not allow assistance to be taken away from Minnesotans in need,” Ellison said.
The USDA’s decision comes in parallel with a federal court ruling that blocks the Trump administration from withholding funds for childcare subsidies and other social programs in five Democrat-led states, including Minnesota.
Over the past year, the Trump administration has repeatedly targeted Minnesota, linking the state to alleged large-scale fraud involving members of the Somali community. Federal prosecutors estimate that up to $9 billion may have been stolen through schemes associated with this community.
In November 2025, President Trump revoked legal protections for Somali immigrants, claiming that “Somali gangs are terrorizing the people of that state and billions of dollars are missing.”
