The United States Department of Agriculture (USDA) has announced a halt to federal financial awards for Minnesota due to what it describes as widespread fraud. This move was publicized on Friday, marking a significant step in addressing alleged financial misconduct.
Brooke Rollins, serving as the Secretary of Agriculture, took to social media platform X to voice concerns. She declared, “Enough is enough! The Trump administration has uncovered massive fraud in Minnesota and Minneapolis—billions siphoned off by fraudsters.” Rollins criticized local leadership for their perceived inaction, stating, “And those in charge have zero plan to fix it.”
The immediate suspension of funding will remain in place “until sufficient proof has been provided that the fraud has stopped,” according to Rollins. This decision underscores the USDA’s firm stance against financial improprieties, emphasizing a need for accountability and transparency in the use of federal funds.
Rollins further expressed her frustration by stating, “No more handouts to thieves!” She called for decisive action to “drain the Minnesota swamp and put American taxpayers first.” The suspended awards aggregate to more than $129.1 million, a significant amount intended to aid various programs and initiatives within the state.
In the midst of this controversy, Minnesota Governor Tim Walz and Minneapolis Mayor Jacob Frey, both Democrats, have been specifically pointed out. They stand accused of failing to provide essential information and implement straightforward measures to combat fraud during their time in office.
Minnesota Gov. Tim Walz and Minneapolis mayor Jacob Frey, both Democrats, were accused of refusing to ‘provide basic information or take common sense measures to stop fraud’ while in office.
In a letter attached to the announcement, Rollins said that ‘numerous non-profits and businesses have defrauded the federal government in what a federal prosecutor in Minnesota called “a staggering, industrial-scale fraud”.’
She specifically pointed to the Feeding Our Future nonprofit, which ran a $250million fraud scheme that took advantage of a federally-funded child nutrition program.
Secretary of Agriculture Brooke Rollins announced that federal financial awards to Minnesota were suspended immediately because of ‘massive fraud’
As of late November, 78 people – 72 of whom are Somali – have been charged in connection to that program.
The Department of Justice called it the ‘largest COVID-19 fraud scheme in the country.’
Rollins said that Walz and Frey’s ‘leadership — or lack thereof’ had resulted in ‘fraudsters’ exploiting American taxpayers.
‘This necessitates federal action to protect taxpayer dollars until adequate safeguards can be established,’ she wrote.
Walz and Frey were also accused of refusing ‘additional accountability and oversight,’ after claiming that criticism of the alleged fraud was supposedly ‘racist.’
Going forward, every transaction linked to an award received by Minnesota or Minneapolis will now require ‘payment justifications.’
The city and state were also given 30 days to explain how they had spent all of their federal dollars from January 20 of last year – when Donald Trump was inaugurated – until now.
‘While your Administrations have turned a blind eye to documented fraud, the Trump Administration has made clear that fraud, waste, and abuse are unacceptable,’ Rollins wrote.
The Trump administration announced last week that child care payments to Minnesota had also been frozen
Treasury Secretary Scott Bessent said that Minnesotans’ tax dollars ‘could have potentially been diverted to the terrorist organization al-Shabab’
She added: ‘The American people deserve to know that their taxpayer dollars are helping those in need — not criminals.’
Walz and Frey have not yet responded to Rollins’ announcement.
On Friday, Treasury Secretary Scott Bessent said that Minnesota’s funds ‘could have potentially been diverted to the terrorist organization al-Shabab.’
‘We are thoroughly investigating the fraud, including funds sent to Somalia through money service businesses, which provide financial services outside of a formal bank,’ he said, according to Fox News.
Bessent claimed that this happened under the ‘feckless mismanagement of the Biden Administration and Governor Tim Walz’ in December on X.
‘We are acting fast to ensure Americans’ taxes are not funding acts of global terror,’ he added.
Last week, the federal government announced that child care payments to Minnesota had also been frozen.
That was due to the state’s ongoing daycare fraud scandal, which received wide attention after independent conservative journalist Nick Shirley shared footage of what he said were empty, fraudulent daycares around Minneapolis.
That included a facility that featuring a misspelled sign, which referred to the daycare as the Quality ‘Learing’ Center – instead of the Quality Learning Center.
Nasrulah Mohamed, a manager at Nokomis Daycare Center in Minneapolis, said earlier this month that recent allegations – including Shirley’s – had placed a target on Somali facilities
Deputy Secretary of Health and Human Services (HHS) Jim O’Neill demanded that Walz audit the centers who were allegedly involved.
However, that freeze was temporarily blocked by a federal judge in New York on Friday, The New York Times reported.
Judge Arun Subramanian told the Trump administration to release the money – less than one day after Minnesota and four other states filed a lawsuit against the Trump administration’s move.
The lawsuit argued that the freeze would harm families with young kids.
Daycare workers and parents in Minnesota have raised concerns that Somali-run facilities were being targeted in wake of the allegations.
Nasrulah Mohamed, a manager at Nokomis Daycare Center in Minneapolis, alleged earlier this month that enrollment documents, staff paperwork and checkbooks had been taken from his place of work.
Mohamed said that ‘one video made by a specific individual made this all happen’ – referring to Shirley, who claimed the centers front to collect federal funds.
‘We’ve been receiving hateful messages through our voice notes threatening us since the past couple of days,’ Mohamed said.
This is a breaking news story. More to come…
