The United States Secretary of Agriculture, Brooke L. Rollins, has ordered the suspension of more than $129 million in federal funding allocated to the State of Minnesota and the City of Minneapolis over allegations of large-scale fraud and poor oversight of public funds.
In a letter dated January 9, 2026, and addressed to Minnesota Governor Tim Walz and Minneapolis Mayor Jacob Frey, Rollins said the action followed years of alleged fraud and mismanagement involving federal programmes administered by state and city authorities.
Rollins said the decision was taken in line with her responsibility to ensure proper management of taxpayer funds and to eliminate fraud, waste and abuse within programmes funded by the U.S. Department of Agriculture. She accused Minnesota and Minneapolis officials of failing to put in place adequate accountability measures, allowing fraud to thrive under their leadership.
She cited several high-profile cases, most notably the Feeding Our Future scandal, in which a Minneapolis-based nonprofit allegedly diverted nearly $250 million meant to provide meals for children during the COVID-19 pandemic. According to federal prosecutors, the case represents the largest COVID-19-related fraud scheme in the United States, with 78 defendants charged as of late November.
The Agriculture Secretary noted that the fraud involved USDA-funded initiatives such as the Child and Adult Care Food Program and the Summer Food Service Program. She also referenced other alleged abuses of federal funds in Minnesota, including cases linked to the Paycheck Protection Program and housing assistance schemes.
Rollins criticised state leaders for what she described as efforts to downplay or deflect scrutiny, adding that concerns raised about fraud were, at times, dismissed as racially motivated. She further accused the Minnesota government of resisting federal attempts to strengthen oversight, particularly in the administration of the Supplemental Nutrition Assistance Program.
According to Rollins, Minnesota officials had challenged USDA directives aimed at verifying the accuracy of SNAP beneficiary records, while the state’s Department of Human Services allegedly submitted incorrect participation data to the federal government on multiple occasions.
As a result, Rollins announced the immediate suspension of all active and future USDA financial awards to Minnesota and Minneapolis, amounting to more than $129.18 million. She said the state and city have been given 30 days to submit detailed justifications for all federal spending dating back to January 20, 2025.
She warned that failure to comply with the directive would lead to a continued freeze on funds, stressing that future transactions would only proceed after proper documentation and approval.
Rollins said the move reflects the Trump administration’s zero-tolerance approach to fraud and misuse of public resources, insisting that taxpayer funds must be used to support those in genuine need rather than criminal activities.
