USDA Payment Suspension for Minnesota Exceeds $120 Million, Announces White House

The U.S. Agriculture Secretary, Brooke Rollins, declared on Friday a halt on all ongoing and upcoming financial distributions from the USDA to Minnesota. This decision stems from a persistent fraud controversy that led the White House to suspect federal funds misuse.

In communication with Governor Tim Walz and Mayor of Minneapolis Jacob Frey, Rollins noted that the paused awards amount to over $129 million as of Friday evening.

Rollins outlined the suspension's rationale, citing alleged fraudulent activities involving Minnesota non-profit organizations and accusations of deception scattered across the state.

She criticized the local administrations for not supplying essential information or engaging in pragmatic steps to curb fraudulent activities. Rollins requested that Walz and Frey substantiate all federal expenditures from the state starting from the previous January 20 to the current date within a month. Future disbursements will necessitate such spending justifications.

Minnesota's Attorney General, Keith Ellison, responded online, stating his refusal to let Minnesotans suffer and promising legal action.

Local news outlet, WCCO, tried obtaining responses from Walz and Frey regarding the development.

A series of noted large-scale fraudulent schemes within Minnesota have gained national attention, with former President Trump labeling the state a focal point for illicit money operations.

On Friday, U.S. Treasury Secretary Scott Bessent introduced new initiatives, such as an IRS task force, to tackle the fraud, highlighting the heightened risk amidst the current heightened scrutiny.

During a visit to Minnesota, Bessent stated, "Minnesota will serve as the foundation for investigating protocols, methodologies, and teamwork, paving the way for nationwide implementation."

Federal officials informed CBS News that Minnesota recently received additional resources to scrutinize and address the statewide fraudulent actions within its social service sectors.

Governor Walz announced earlier this week his withdrawal due to rising examination of his handling of the scandal. He defended his administration's efforts against fraud and accused the former president of using the situation politically to slash funding for essential Minnesota programs.