Wednesday, January 14, 2026
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    USDA Suspends $129M in Minnesota, Minneapolis Awards, Citing “Systemic Fraud”

    Rollins says payments stop immediately and demands spending justifications within 30 days.

    The U.S. Department of Agriculture will suspend about $129.18 million in financial awards to the State of Minnesota and the City of Minneapolis, citing what it called “widespread and systemic fraud,” Agriculture Secretary Brooke Rollins announced Friday.

    “Enough is enough!” Rollins wrote on X while sharing a letter addressed to Minnesota Gov. Tim Walz and Minneapolis Mayor Jacob Frey. In the same post, she accused Minnesota and Minneapolis of allowing “MASSIVE fraud,” claimed “billions” were siphoned off by fraudsters, and said leaders had “ZERO plan to fix it.”

    In the letter, Rollins said the suspension is effective immediately and applies to payments on all active USDA awards, as well as any future awards, to both the state and the city. She said the action is intended to protect taxpayer dollars until stronger oversight and accountability measures are put in place.

    Rollins pointed to numerous fraud cases as the result for the decision, highlighting the Feeding Our Future investigation.

    She wrote in the letter that the Minneapolis-based nonprofit defrauded taxpayers of nearly $250 million tied to child nutrition funding routed through Minnesota’s education system, involving programs including the Child and Adult Care Food Program and the Summer Food Service Program. She also pointed additional suspected fraud operations in Minnesota that were connected to different programs and sources of income.

    Under the terms described in the letter, Rollins directed Minnesota and Minneapolis to provide USDA with payment justifications for federal-dollar expenditures from Jan. 20, 2025, to the present within 30 days. She said future transactions tied to awards would require payment justification as well, and warned that awards would remain suspended if the documentation is not provided.

    Minnesota Attorney General Keith Ellison responded on social media, promising a legal fight. “I will not allow you to take from Minnesotans in need,” Ellison wrote. “I’ll see you in court, @SecRollins.”

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