The Trump administration has announced the suspension of $129m in federal benefit payments to Minnesota, citing investigations into alleged fraud by local non-profits and businesses. The US Department of Agriculture (USDA) Secretary Brooke Rollins shared a letter on Friday addressed to Minnesota Governor Tim Walz and Minneapolis Mayor Jacob Frey, notifying them of the decision and demanding justification for all federal spending since 20 January 2025 within 30 days.
“Despite a staggering, wide-reaching fraud scandal, your administrations refuse to provide basic information or take common sense measures to stop fraud,” Rollins wrote. The letter also requires that future federal payments to the state be accompanied by similar justification. Minneapolis spokesperson Brian Feintech responded, saying: “What’s abundantly clear is that Minneapolis is the latest target of the Trump administration – willing to harm Americans in service to its perceived political gain.”
Minnesota Attorney General Keith Ellison publicly responded on social media, writing: “I will not allow you to take from Minnesotans in need. I’ll see you in court.” The suspension coincides with a federal ruling that the Trump administration cannot block federal funds for childcare and other low-income family programmes in five Democratic-led states, including Minnesota.
The Trump administration has focused on Minnesota over the past year amid fraud allegations linked to the state’s Somali population. Federal prosecutors estimate up to $9bn has been stolen through schemes involving Somali residents. In November 2025, Trump ended legal protections for Somali immigrants in the state, claiming “Somali gangs are terrorizing the people of that great State, and BILLIONS of Dollars are missing.” He later made derogatory remarks about Somali immigrants and Representative Ilhan Omar during a cabinet meeting.
In December 2025, FBI Director Kash Patel announced additional resources to “dismantle large-scale fraud schemes” in Minnesota, noting a previous $250m fraud case involving federal food aid that led to 78 indictments and 57 convictions. Last week, Governor Walz announced he would not seek a third term, acknowledging that the fraud crisis had been exploited by Trump and Republicans to deepen divisions.
