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

The agency set a 30-day deadline to justify all federal spending since January 2025, citing the Feeding Our Future scandal as the trigger.

Overview

  • The suspension halts all active and future USDA awards to the State of Minnesota and the City of Minneapolis totaling just over $129 million, effective immediately.
  • Secretary Brooke Rollins directed officials to submit payment justifications for expenditures from Jan. 20, 2025, to the present within 30 days, with future payments contingent on such documentation.
  • USDA cited the Feeding Our Future case—nearly $250 million in alleged fraud with 78 defendants charged—and referenced additional red flags in other social-service programs.
  • Which programs will be directly affected remains unclear; reporting notes potential strain on administrative funding, with no definitive indication that individual SNAP benefits have stopped.
  • Minnesota officials pushed back, with Attorney General Keith Ellison promising a court challenge, as related federal actions continue, including prior HHS freezes, DOJ reinforcements in the state, and a court’s temporary block of a separate HHS child-care cut affecting multiple states.