USDA suspends $129M in Minnesota awards amid fraud probe
The USDA has immediately suspended just over $129 million in active and future federal awards to Minnesota amid a wide‑ranging social‑services fraud investigation, according to a letter from White House official Brooke Rollins sent to Gov. Tim Walz and Minneapolis Mayor Jacob Frey that demands justification for USDA‑related spending back to Jan. 20 of last year and requires case‑by‑case payment justification going forward. The action, tied by officials to alleged fraud in programs including Feeding Our Future, Housing Stabilization Services and daycare claims, prompted Minnesota Attorney General Keith Ellison to promise legal challenges as DOJ deploys federal prosecutors to assist and Treasury announced new anti‑fraud measures and an IRS task force.
📌 Key Facts
- As of Friday evening, the USDA suspended just over $129 million in active and future awards to Minnesota.
- Brooke Rollins' letter to Gov. Tim Walz and Minneapolis Mayor Jacob Frey demands justification, within 30 days, for all USDA-related federal spending to Minnesota from Jan. 20 of last year to the present, and states that future payments will require case-by-case 'payment justification'.
- The USDA action is explicitly linked to alleged fraud in the Feeding Our Future program, the Housing Stabilization Services program, and daycare-center claims; Rollins accused Walz and Frey of refusing to provide basic information or take common-sense measures to stop fraud.
- U.S. officials told CBS News that the Department of Justice is sending a team of federal prosecutors to Minnesota to assist in the wide-ranging social-services fraud investigation.
- Minnesota Attorney General Keith Ellison publicly vowed to fight the suspension in court, posting, 'I will not allow you to take from Minnesotans in need. I'll see you in court.'
- Treasury Secretary Scott Bessent announced a new IRS task force and related measures, saying Minnesota will be 'the genesis for a national rollout' of anti-fraud protocols, procedures and collaborations.
📊 Relevant Data
As of March 2025, 44 individuals have been convicted in the Feeding Our Future fraud case, of which approximately 89% have names indicating Somali origin, despite Somalis comprising only 1.4% of Minnesota's population.
Here’s a list of everyone who has been convicted in the Feeding Our Future case — Hiiraan Online
In fiscal year 2023, 58.2% of SNAP participating households in Minnesota were headed by White individuals, 22.4% by Black individuals, 10.1% by Hispanic individuals, 5.3% by Asian individuals, and 4.0% by other groups.
Characteristics of Supplemental Nutrition Assistance Program Households: Fiscal Year 2023 — USDA Food and Nutrition Service
In federal fraud offenses from 2017-2021, Black males received sentences 9.2% longer than White males, and Hispanic males received sentences 12.8% longer than White males, after controlling for offense and personal characteristics.
2023 Demographic Differences in Federal Sentencing Report — United States Sentencing Commission
📊 Analysis & Commentary (1)
"A skeptical deep dive arguing the Minnesota funding freezes respond to real oversight failures but are politically blunt, risk harming legitimate recipients, and should be replaced by targeted forensic audits and smarter controls rather than broad federal suspensions."
📰 Source Timeline (2)
Follow how coverage of this story developed over time
- Brooke Rollins’ letter specifies that as of Friday evening the USDA payments suspended to Minnesota total 'just over $129 million' in active and future awards.
- Rollins’ letter is addressed not only to Gov. Tim Walz but also to Minneapolis Mayor Jacob Frey, and she demands justification for all USDA-related federal spending to Minnesota from Jan. 20 of last year to the present within 30 days.
- Rollins states that all payments going forward will require case-by-case 'payment justification' from state/local officials.
- Minnesota Attorney General Keith Ellison publicly responds on social media, promising to fight the move in court: 'I will not allow you to take from Minnesotans in need. I'll see you in court.'
- The article explicitly links USDA’s action to alleged fraud in Feeding Our Future, the Housing Stabilization Services program, and daycare-center claims, quoting Rollins’ criticism that Walz and Frey have 'refuse[d] to provide basic information or take common sense measures to stop fraud.'
- The piece notes U.S. officials told CBS News that DOJ is sending a team of federal prosecutors to Minnesota to assist in the wide‑ranging social‑services fraud investigation.
- It reiterates Treasury Secretary Scott Bessent’s announcement of a new IRS task force and related measures, and quotes him saying Minnesota will be 'the genesis for a national rollout' of anti‑fraud protocols, procedures and collaborations.