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USDA suspends all federal funds to Minnesota after fraud scandal uncovered
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USDA suspends all federal funds to Minnesota after fraud scandal uncovered

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Last updated: January 10, 2026 6:37 am
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Published: January 10, 2026
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NEWNow you can take heed to Fox Information articles!

The Trump administration introduced Thursday it’s suspending all U.S. Division of Agriculture (USDA) funding to Minnesota, efficient instantly, with a large-scale fraud investigation underway.

“Sufficient is sufficient! The Trump administration has uncovered MASSIVE fraud in Minnesota and Minneapolis —billions siphoned off by fraudsters. And people in cost have ZERO plan to repair it,” Agriculture Secretary Brooke Rollins wrote in a social media submit.

The USDA will droop federal monetary awards to the state “till ample proof has been offered that the fraud has stopped,” based on Rollins.

USDA Secretary Brooke Rollins introduced Friday the Trump administration is suspending federal funds in Minnesota amid fraud investigations. (Tom Williams/Getty)

‘TIP OF THE ICEBERG’: SENATE REPUBLICANS PRESS GOV WALZ OVER MINNESOTA FRAUD SCANDAL

“No extra handouts to thieves!” she wrote within the submit. “Time to empty the Minnesota swamp and put American taxpayers first.”

Treasury Secretary Scott Bessent on Friday stated Minnesota tax {dollars} might have been filtered to terrorist group al-Shabab after a December investigation by his company.

In a single alleged fraud scheme, the nonprofit “Feeding Our Future” allegedly swindled $250 million from a USDA-funded kids’s diet program that Minnesota oversaw through the COVID-19 pandemic.

Dozens of individuals are charged with faking invoices, attendance information and meal distribution in low-income communities in Minnesota, having allegedly used USDA COVID-era waivers that allowed for unchecked program enrollment.

Quality Learning Center sign being fixed

High quality Studying Middle in Minnesota was on the middle of an alleged childcare fraud scandal within the state. (Madelin Fuerste/Fox Information Channel)

DEMOCRATIC LAWMAKER SAYS FOCUS SHOULD BE ON ‘WHITE MEN’ AT MINNESOTA FRAUD HEARING

Earlier this week, the Division of Well being and Human Providers froze funding for a number of childcare grant applications within the state, together with the Baby Care and Improvement Fund, Non permanent Help for Needy Households and Social Providers Block Grant applications.

A federal choose blocked the motion Friday, discovering the Trump administration couldn’t block federal funding for childcare subsidies and applications to assist low-income households, based on a report from The Related Press.

KSTP-TV segment on Minnesota daycare facilities

KSTP reporter Jay Kolls investigated alleged fraud dedicated at Minnesota daycare facilities in January 2025. (Screenshot/KSTP 5)

One other scheme allegedly concerned the Housing Stability Providers Program, which doled out Medicaid protection for housing stabilization providers for these with disabilities, psychological sicknesses and substance-use problems.

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Fox Information Digital’s Diana Stancy and Charles Creitz contributed to this report.

Alexandra Koch is a Fox Information Digital journalist who covers breaking information, with a concentrate on high-impact occasions that form nationwide dialog.

She has coated main nationwide crises, together with the L.A. wildfires, Potomac and Hudson River aviation disasters, Boulder terror assault, and Texas Hill Nation floods.

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