USDA halts funding to Minnesota over fraud concerns

 January 11, 2026

The U.S. Department of Agriculture has slammed the brakes on millions in funding to Minnesota, pointing to widespread fraud and a glaring lack of cooperation from state officials.

The USDA, led by Secretary Brooke Rollins, announced the suspension of all active and future grants worth $129 million, tied to the massive Feeding Our Future scandal that saw $300 million meant for child nutrition programs during the COVID-19 pandemic diverted to personal gains, while Minnesota has 30 days to justify payments for grants received since January 2025.

Critics contend that this bold move by the USDA exposes a troubling breakdown in oversight, casting a harsh light on how federal aid is managed at the state level.

Feeding Our Future Scandal Unveiled

The Feeding Our Future scandal revealed a jaw-dropping misuse of $300 million, funds earmarked for feeding children during the pandemic, instead siphoned off for luxury goods and property investments, as the Daily Caller reports.

During the COVID-19 crisis, accountability rules in the Federal Child Nutrition Program were relaxed, creating a perfect storm for fraudsters to exploit taxpayer money with little resistance.

The Department of Justice pinpointed 14 fraudulent funding streams, with significant convictions linked to this case, painting a grim picture of systemic abuse.

State Oversight Failures in Focus

Beyond the scandal, fingers are pointing at the Walz administration for allegedly stalling efforts to purge fraud from the SNAP program, a critical safety net for many.

Adding fuel to the fire, the Minnesota Department of Human Services reported a questionable 174% surge in SNAP spending between 2020 and 2021, raising eyebrows about the accuracy of their data.

If that’s not enough, accusations of inaction or worse have been leveled against Minnesota Attorney General Keith Ellison, linked to a recorded event in December 2021, suggesting deeper issues in leadership accountability.

Ellison and USDA Clash Publicly

Ellison pushed back against the USDA’s decision, stating, “I will not allow you to take from Minnesotans in need,” positioning himself as a defender of the vulnerable.

Yet, one might ask if the real issue isn’t the theft of resources meant for those very Minnesotans, a problem that seems to have flourished under current oversight.

The rhetoric sounds noble, but results matter more than words when millions are misdirected away from hungry children.

USDA Takes a Firm Stand

Secretary Brooke Rollins delivered a sharp rebuke, declaring, “No more handouts to thieves!” in a clear signal that the USDA won’t tolerate misuse of public funds.

In her letter to state officials, Rollins emphasized, “The American people deserve to know that their taxpayer dollars are helping those in need — not criminals,” a sentiment that strikes a chord with anyone frustrated by government waste.

This hardline approach might just be the jolt needed to remind states that federal patience wears thin when trust—and taxpayer money—are squandered so blatantly.

Broader Lessons for Federal Programs

The implications of this suspension stretch far beyond Minnesota’s borders, serving as a stark reminder of the vulnerabilities in federal aid systems, especially during times of crisis when oversight often slips.

With 85 of 98 defendants in related cases reportedly of Somali descent, it’s crucial to keep the discussion anchored on individual actions and policy gaps, not cultural or ethnic narratives, ensuring the focus remains on fixing broken systems.

If Minnesota fails to account for its grant spending within the tight 30-day deadline, other states might face similar scrutiny, proving that the USDA is serious about safeguarding public resources for those who genuinely need them.

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