The Trump administration has moved to suspend more than $129 million in annual federal funding for food stamps and related hunger-relief programs in Minnesota, citing what it describes as “widespread and systemic” fraud in the administration of federal benefits.
In a letter sent Friday, January 9, 2026, to Minnesota Governor Tim Walz and Minneapolis Mayor Jacob Frey, U.S. Agriculture Secretary Brooke Rollins said the U.S. Department of Agriculture (USDA) would freeze Supplemental Nutrition Assistance Program (SNAP) funding to both the state and the city of Minneapolis while federal authorities investigate alleged misconduct.
Rollins attributed the action to Minnesota’s purported failure to prevent fraud and to cooperate fully with federal oversight efforts. The letter references the high-profile Feeding Our Future case, in which federal prosecutors allege that a Minnesota nonprofit and its associates stole approximately $250 million from a pandemic-era program intended to provide meals to children. Since 2022, 78 individuals have been charged, and 57 have been convicted, according to federal authorities.
“While the full extent of fraud in Minnesota is not yet known, it is clear that, under your leadership — or lack thereof — fraudsters can take advantage of federal funds and the American taxpayer with impunity,” Rollins wrote, adding that federal intervention was necessary to protect taxpayer dollars.
The agriculture secretary further accused Minnesota officials of failing to provide complete SNAP enrollment data needed for federal recertification and of repeatedly submitting inaccurate information through the Minnesota Department of Human Services. To restore funding, Rollins said the state must submit detailed payment justifications for all federal expenditures within 30 days.
As of Saturday, Governor Walz’s office had not publicly responded. Minnesota Attorney General Keith Ellison, however, told the Associated Press that the state would challenge the funding freeze in court, setting the stage for another legal confrontation between the state and the federal government.
Broader Pattern of Federal Funding Suspensions
The SNAP freeze follows a series of recent federal actions targeting Minnesota programs over alleged fraud concerns. Last month, the U.S. Department of Health and Human Services (HHS) froze federal child care payments to the state, citing what officials described as extensive fraud in the child care system. That decision came after a widely circulated video by conservative commentator Nick Shirley, who alleged misconduct at day care centers operated by people of Somali origin.
HHS Deputy Secretary Jim O’Neill said at the time that the department was “finding the fraud” and had halted payments accordingly.
However, a federal judge intervened Friday, temporarily blocking the administration from withholding child care subsidies and other program funds from Minnesota and four other Democratic-led states — California, Colorado, Illinois, and New York. U.S. District Judge Arun Subramanian, a Biden appointee, ruled that the states had met the legal threshold to preserve the status quo for at least 14 days while the court considers the legality of the freezes.
SBA Loan Suspensions Add to Legal Pressure
Minnesota has also come under scrutiny from the U.S. Small Business Administration (SBA). Last month, the SBA suspended 6,900 Minnesota borrowers from participating in federal loan programs after reviewing thousands of pandemic-era Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) approvals.
According to SBA Administrator Kelly Loeffler, the suspended borrowers are linked to roughly 7,900 loans totaling about $400 million. Loeffler said the individuals would be barred from future SBA programs and referred to federal law enforcement where appropriate for prosecution and repayment.
Legal Implications
Legal experts say the growing number of funding freezes raises significant questions about federal authority, due process, and the limits of executive power in withholding congressionally authorized funds. With multiple court challenges underway, Minnesota’s disputes with the Trump administration are likely to shape future legal standards governing federal-state relations and the enforcement of anti-fraud measures in public benefits programs.
