USDA Suspends All Payments To Minnesota's Food Programs Over Suspected Fraud

The USDA suspended federal food program payments in Minnesota and Minneapolis due to alleged widespread fraud and abuse. USDA Secretary Brooke Rollins announced the suspension, citing billions of dollars siphoned off by fraudsters. Payments to the state and city, totaling about $130 million, will be halted until detailed expenditure documentation is provided. Over 440,000 residents receive SNAP benefits, which utilizes a significant portion of federal food program funding. Minnesota received an estimated $2.05 billion in federal funds for 52 food-related programs in 2025. Rollins criticized Governor Tim Walz’s administration for not providing information to prevent fraud. The state previously sued the USDA over a directive to recertify SNAP recipients, a move Attorney General Keith Ellison supported. State and city officials must now justify all federal dollar spending since January 20, 2025. Investigations have been expanded across various social services programs in Minnesota. The USDA's action aims to protect taxpayer dollars pending the establishment of adequate safeguards.