USDA Suspends $129M Funding to Minnesota Over Fraud

The U.S. Department of Agriculture announced Friday that it is suspending more than $129 million in federal funding awards to the state of Minnesota and the city of Minneapolis, citing concerns over widespread fraud in state-administered programs. The decision, outlined in a letter from Secretary Brooke Rollins to Governor Tim Walz and Mayor Jacob Frey, takes effect immediately and will remain in place until officials provide evidence that fraudulent activities have ceased.

Rollins, in the letter and a related post on X, referenced multiple instances of alleged fraud, including the Feeding Our Future scandal, in which a nonprofit group and associates siphoned off approximately $250 million in federal funds intended for child nutrition programs during the COVID-19 pandemic. The scheme, described by federal prosecutors as the largest COVID-19-related fraud case in the country, led to charges against 78 defendants as of late November. Additional concerns involved exploitation of the Small Business Administration's Paycheck Protection Program and irregularities in daycare centers receiving federal support through programs like the Child and Adult Care Food Program and the Summer...