Politics

Trump Administration Halts $129 Million in Benefit Payments to Minnesota

Trump Administration Suspends Federal Benefit Payments to Minnesota Amid Fraud Allegations

The Trump administration has announced the suspension of $129 million in federal benefit payments to Minnesota, citing widespread allegations of fraud in the state.

Government Response to Allegations

Brooke Rollins, Secretary of the U.S. Department of Agriculture (USDA), communicated this decision through a letter addressed to Minnesota Governor Tim Walz and Minneapolis Mayor Jacob Frey. The letter outlined ongoing investigations into alleged fraudulent activities linked to local non-profits and businesses.

“Despite a serious, far-reaching fraud scandal, your administrations refuse to provide basic information or enact sensible measures to combat fraud. The Trump administration will not allow such misconduct to persist,” Rollins stated.

Call for Accountability

Rollins has requested that Walz and Frey justify all federal expenditures from January 20, 2025, to the present within 30 days. Going forward, she mandates that all federal payments to Minnesota will require similar justification.

“We’re communicating with state partners to understand the impacts of such a blanket cut to funding meant for residents most in need,” stated Brian Feintech, spokesperson for the city of Minneapolis. “It’s clear that Minneapolis is the latest target of the Trump administration—willing to harm Americans in service to its perceived political gain.”

Legal Repercussions

Minnesota Attorney General Keith Ellison responded publicly to Rollins’ announcement, stating on social media, “I will not allow you to take from Minnesotans in need. I’ll see you in court.”

The USDA’s announcement comes on the heels of a federal ruling that prohibits the Trump administration from blocking federal funds for childcare subsidies and other programs aimed at low-income families in five Democratic-led states, including Minnesota.

Targeted Investigations

The Trump administration has scrutinized Minnesota over the past year, particularly targeting the state’s Somali population concerning fraud allegations. Federal prosecutors estimate that schemes related to this community may have resulted in as much as $9 billion in losses.

In November 2025, Trump annulled legal protections for Somali migrants in Minnesota, alleging that “Somali gangs are terrorizing the people of that great State.”

Xenophobic Remarks and Federal Action

During a cabinet meeting, Trump made inflammatory remarks about Somali immigrants and Congresswoman Ilhan Omar, who represents Minnesota and is of Somali descent. He stated, “They contribute nothing. I don’t want them in our country. We’re going the wrong way if we keep taking in garbage into our country.”

Following these events, the FBI announced efforts to combat large-scale fraud exploiting federal programs in Minnesota, led by Director Kash Patel. The agency has already dismantled a $250 million fraud scheme that targeted federal food aid for vulnerable children during the COVID-19 pandemic, resulting in numerous indictments and convictions.

Political Fallout

Last week, Governor Walz announced he will not seek a third term amid heightened scrutiny over his administration’s handling of fraud allegations. He acknowledged the divisive political landscape exacerbated by Trump and his allies.

“I won’t mince words here,” Walz remarked. “Donald Trump and his allies—whether in Washington, St. Paul, or online—want to make our state a colder, meaner place.”

This situation underscores ongoing challenges in election reform, government policies, and public opinion surrounding democracy in America. As political campaigns intensify, civic engagement remains crucial for addressing these critical issues.

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