The US Department of Agriculture (USDA) announced Friday that it was suspending federal financial awards to Minnesota over ‘massive fraud.’
‘Enough is enough! The Trump administration has uncovered MASSIVE fraud in Minnesota and Minneapolis—billions siphoned off by fraudsters,’ Brooke Rollins, the Secretary of Agriculture, wrote on X. ‘And those in charge have ZERO plan to fix it.’
The funding for the awards was suspended effective immediately ‘until sufficient proof has been provided that the fraud has stopped,’ she added.
‘No more handouts to thieves!’ Rollins wrote. ‘Time to drain the Minnesota swamp and put American taxpayers first.’
The awards currently total more than $129.1million, she said.
Minnesota Gov. Tim Walz and Minneapolis mayor Jacob Frey, both Democrats, were accused of refusing to ‘provide basic information or take common sense measures to stop fraud’ while in office.
In a letter attached to the announcement, Rollins referenced that ‘numerous non-profits and businesses have defrauded the federal government in what a federal prosecutor in Minnesota called ‘a staggering, industrial-scale fraud’.’
She specifically pointed to the Feeding Our Future nonprofit, which ran a $250 million fraud scheme that took advantage of a federally-funded child nutrition program.
Brooke Rollins, the Secretary of Agriculture, announced that federal financial awards to Minnesota were suspended immediately because of ‘massive fraud’
As of late November, 78 people – 72 of whom are Somali – have been charged in connection to that program.
The Department of Justice called it the ‘largest COVID-19 fraud scheme in the country.’
Rollins said that Walz and Frey’s ‘leadership — or lack thereof’ had resulted in ‘fraudsters’ exploiting American taxpayers.
‘This necessitates federal action to protect taxpayer dollars until adequate safeguards can be established,’ she wrote.
Walz and Frey were also accused of refusing ‘additional accountability and oversight, claiming that criticism of rampant fraud and abuse is “racist”.’
Going forward, every transaction linked to an award received by Minnesota or Minneapolis will require ‘payment justifications.’
The city and state were also asked to justify how they had spent all of their federal dollars from January 20 of last year until now within 30 days.
‘While your Administrations have turned a blind eye to documented fraud, the Trump Administration has made clear that fraud, waste, and abuse are unacceptable,’ Rollins wrote.
The Trump administration announced last week that child care payments to Minnesota had also been frozen
She added: ‘The American people deserve to know that their taxpayer dollars are helping those in need — not criminals.’
On Friday, Treasury Secretary Scott Bessent said that Minnesota’s funds ‘could have potentially been diverted to the terrorist organization al-Shabab.’
‘We are thoroughly investigating the fraud, including funds sent to Somalia through money service businesses, which provide financial services outside of a formal bank,’ he said, according to Fox News.
Bessent claimed that this happened under the ‘feckless mismanagement of the Biden Administration and Governor Tim Walz’ in December on X.
‘We are acting fast to ensure Americans’ taxes are not funding acts of global terror,’ he added.
Last week, the federal government announced that child care payments to Minnesota had also been frozen.
That was due to the state’s ongoing daycare fraud scandal, which received wide attention after independent conservative journalist Nick Shirley shared footage of what he said were empty, fraudulent daycares around Minneapolis.
That included a facility that featuring a misspelled sign, which referred to the daycare as the Quality ‘Learing’ Center – instead of the Quality Learning Center.
Treasury Secretary Scott Bessent said that Minnesotans’ tax dollars ‘could have potentially been diverted to the terrorist organization al-Shabab’
Deputy Secretary of Health and Human Services (HHS) Jim O’Neill demanded that Walz audit the centers who were allegedly involved.
However, that freeze was temporarily blocked by a federal judge in New York on Friday, The New York Times reported.
Judge Arun Subramanian told the Trump administration to release the money – less than one day after Minnesota and four other states filed a lawsuit against the Trump administration’s move.
The lawsuit argued that the freeze would harm families with young kids.
This is a breaking news story. More to come…
