USDA Suspends Federal Funding To Minnesota, Citing Fraud Concerns

United States House of Representatives - Office of Ruben Gallego, Public domain, via Wikimedia Commons
American Liberty News
- June 4, 2026
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Arizona Democratic Sen. Ruben Gallego is launching an effort to challenge a new Trump Administration immigration policy that could require many green card applicants to leave the United States and complete the process abroad.

According to a report from The Hill, Gallego is not only seeking to overturn the policy itself but is also pursuing a procedural strategy that could make it easier for Congress to reverse the change.

The dispute revolves around a recent U.S. Citizenship and Immigration Services (USCIS) policy affecting how certain immigrants obtain lawful permanent residency.

USDAgov, Public domain, via Wikimedia Commons
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WASHINGTON The U.S. Department of Agriculture announced Friday that it is immediately suspending federal financial awards to the state of Minnesota and the city of Minneapolis, escalating a dispute over alleged widespread fraud in federally funded programs.

USDA Secretary Brooke Rollins said in a social media post and letter to Minnesota Gov. Tim Walz and Minneapolis Mayor Jacob Frey that the decision follows what she described as “massive fraud” siphoning billions of federal dollars from taxpayer-funded programs.

“Enough is enough … No more handouts to thieves!” Rollins wrote on X, asserting state and local leaders have failed to stop the alleged abuses.

The decision affects all active and future financial awards — a package the USDA says totals nearly $130 million.

The New York Post continues:

Rollins’ letter references the $250 million Feeding Our Future scandal, which saw dozens of fraudsters pilfer pandemic-era funds meant to feed children from low-income families.

“This fraud scheme involved USDA funding provided to the State of Minnesota to feed hungry children under the Child and Adult Care Food Program (CACFP) and the Summer Food Service Program (SFSP),” the USDA secretary noted. “As of late November, 78 defendants had been charged in what the Department of Justice characterized as the largest COVID-19 fraud scheme in the country.”

Rollins accused Walz and Frey of refusing to take accountability for the Feeding Our Future and other fraud scandals, and slammed them for “claiming that criticism of rampant fraud and abuse is ‘racist.’” 

The letter demands that Walz and Frey provide detailed justifications for all federal expenditures in the state since Jan. 20, 2025, within 30 days.

It also explains that all current and upcoming awards to the state and city will be suspended, effective immediately.

Minnesota officials have condemned the USDA’s funding suspension as heavy-handed and politically motivated. The governor’s office has been tracking past disruptions to federal grants — including pauses and cancellations worth millions — and warns that federal funding cuts could strain the state budget and public services.

At this stage, it’s unclear how the USDA’s action will affect specific programs such as SNAP (food stamps) or school nutrition assistance in Minnesota, as legal challenges and negotiations over federal oversight continue.

Federal and state leaders are expected to monitor developments closely as lawsuits and policy debates over the proper handling of federal funding play out in coming weeks.

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Patrick Houck

Patrick Houck is an avid political enthusiast based out of the Washington, D.C., metro area. His expertise is in campaigns and the use of targeted messaging to persuade voters. When not combing through the latest news, you can find him enjoying the company of family and friends or pursuing his love of photography.

2 Comments
    Bryan Lavers

    Here comes the leftist democrat appointed judge to play president and “overrule “ the decision.
    They ,the judiciary needs to learn to stay in their lane and re-read and learn the constitution!

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