Particle.news
Download on the App Store

USDA Halts $129 Million in Awards to Minnesota and Minneapolis Over Fraud Concerns

The agency cites the Feeding Our Future scandal, requiring detailed payment justifications within 30 days.

Overview

  • Secretary Brooke Rollins ordered an immediate suspension of all active and future USDA awards to the state and the city, totaling about $129.18 million, in a letter to Gov. Tim Walz and Mayor Jacob Frey.
  • The USDA directed Minnesota to submit justifications for all federal expenditures since January 20, 2025 within 30 days, and said future payments will require such documentation.
  • Federal officials did not specify which programs are affected, leaving uncertainty about any near‑term impact on SNAP benefits or other services for individual recipients.
  • The action follows broader federal scrutiny that includes added DOJ prosecutors in Minnesota, earlier HHS funding pauses, and new Treasury and IRS measures targeting benefits fraud.
  • Minnesota Attorney General Keith Ellison vowed a court challenge, while the fraud probe’s backdrop includes 78 defendants charged in the Feeding Our Future case and Gov. Walz exiting the 2026 race.