**Excerpt:** U.S. Agriculture Secretary Brooke Rollins suspends over $129 million in USDA payments to Minnesota amid allegations of widespread fraud.
**Key Points:**
– USDA suspends all active and future payments to Minnesota due to fraud allegations.
– The suspension affects over $129 million in federal funds.
– Secretary Rollins cites fraud schemes involving Feeding Our Future and daycare centers.
– Minnesota Attorney General Keith Ellison vows to fight the suspension in court.
– A new IRS task force is established to combat fraud in the state.
USDA Payment Suspension
U.S. Agriculture Secretary Brooke Rollins announced on Friday the suspension of all active and future USDA award payments to Minnesota, totaling over $129 million. This action comes in response to ongoing fraud allegations involving misuse of federal funds.
Reasons for Suspension
In a letter to Minnesota Governor Tim Walz and Minneapolis Mayor Jacob Frey, Rollins cited several fraud schemes as reasons for the suspension. These include issues related to the nonprofit group Feeding Our Future, Minnesota’s Housing Stabilization Services program, and alleged fraud at daycare centers across the state.
“Despite a staggering, wide-reaching fraud scandal, your Administrations refuse to provide basic information or take common sense measures to stop fraud,” Rollins stated in her letter. She has requested justification for all federal spending to the state since January 20 of last year, with a deadline of 30 days.
Responses and Reactions
Minnesota Attorney General Keith Ellison expressed strong opposition to the suspension. In a social media post, he stated, “I will not allow you to take from Minnesotans in need. I’ll see you in court.” The City of Minneapolis also criticized the decision, claiming it is a politically motivated attack that will harm residents in need.
Federal Investigations
The situation has drawn considerable attention from the federal government. U.S. Treasury Secretary Scott Bessent announced the formation of a new IRS task force to combat fraud specifically in Minnesota. Bessent described Minnesota as a model for national fraud prevention protocols.
Additionally, the Justice Department is sending federal prosecutors to Minnesota to assist in investigating the widespread fraud allegations related to social services.
Political Implications
Governor Walz announced his withdrawal from the 2026 gubernatorial race amid the scandal, although he defended his administration’s efforts to tackle fraud. He accused the Trump administration of politicizing the issue to defund essential programs for Minnesotans.
The situation continues to develop, with significant implications for state funding and support for residents.
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