January 10, 2026
The USDA is suspending all federal funding to Minnesota after a fraud scandal was uncovered involving several childcare grant programs in the state.
The USDA is suspending all federal funding to Minnesota after a fraud scandal was uncovered involving several childcare grant programs in the state.

The Trump administration announced on Thursday it is suspending all U.S. Department of Agriculture (USDA) funding to Minnesota, effective immediately, as a large-scale fraud investigation is underway.

“Enough is enough! The Trump administration has uncovered MASSIVE fraud in Minnesota and Minneapolis—billions siphoned off by fraudsters. And those in charge have ZERO plan to fix it,” Agriculture Secretary Brooke Rollins wrote in a social media post.  

The USDA will suspend federal financial awards to the state “until sufficient proof has been provided that the fraud has stopped,” according to Rollins.


“No more handouts to thieves!” she wrote in the post. “Time to drain the Minnesota swamp and put American taxpayers first.”

Earlier this week, the Department of Health and Human Services’ (HHS) froze funding for several childcare grant programs in the state, including the Child Care and Development Fund, Temporary Assistance for Needy Families and Social Services Block Grant programs.

Treasury Secretary Scott Bessent on Friday said Minnesota tax dollars may have been filtered to terrorist group al-Shabab.

This is a developing story. Please check back for updates

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