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

The agency ordered a 30-day accounting of recent USDA spending by state and city officials.

Overview

  • Agriculture Secretary Brooke Rollins announced the suspension of all active and future USDA awards to Minnesota and Minneapolis totaling more than $129.18 million.
  • In a letter to Governor Tim Walz and Mayor Jacob Frey, Rollins cited evidence of fraud and said numerous nonprofits and businesses had defrauded the federal government during their tenures.
  • Officials were directed to justify every federal-dollar expenditure dating from January 20, 2025 to the present within 30 days.
  • USDA has not specified which programs are affected by the pause, leaving the scope and operational impact unclear.
  • Rollins referenced the Feeding Our Future case, which has led to dozens of convictions, and the step follows separate HHS freezes on several childcare and assistance programs in Minnesota.