Trump administration has stopped federal funding for SNAP and other US Department of Agriculture programs in Minnesota after what officials describe as serious and repeated failures to stop fraud.
US Agriculture Secretary Brooke Rollins informed Minnesota Governor Tim Walz that all active and future USDA awards to the state and the City of Minneapolis are being suspended. The total amount affected is more than $129 million.
“I am notifying you that, effective immediately, I am suspending payments on all active awards and any future awards from USDA to the State of Minnesota and the City of Minneapolis, currently totaling over $129.18 million,” Rollins wrote in the letter.
The fraud cases behind the decision
Federal investigators first released large-scale welfare fraud in Minnesota in 2022 through the Feeding Our Future case, a scheme estimated to have taken about $250 million in taxpayer money. Rollins said 78 people have been charged so far.
More concerns followed. In mid-December, First Assistant US Attorney Joe Thompson said that $9 billion or more in federal funds given to 14 state-run programs since 2018 may have been stolen. According to Rollins, Minnesota failed to take basic steps to prevent fraud even after these revelations.
“Despite a staggering, wide-reaching fraud scandal, your Administrations refuse to provide basic information or take common sense measures to stop fraud,” she wrote.
Dispute over SNAP checks and recertification
The blocked funding includes the Supplemental Nutrition Assistance Program, which supports around 453,900 people in Minnesota, about 8% of the state’s population. In December, the USDA ordered Minnesota to join a pilot program requiring SNAP recipients in certain counties to recertify their eligibility within 30 days. The letter says the state did not comply. Rollins also accused state officials of resisting federal oversight.
“In fact, rather than confirm your SNAP rolls are accurate to prevent continuing fraud, you asked the courts to block USDA’s directive to recertify the State’s SNAP recipients.” She added that Minnesota’s Department of Human Services had repeatedly given incorrect SNAP data to the federal government, leading the administration to act.
How SNAP fraud happens
USDA’s Food and Nutrition Service says SNAP fraud can occur in several ways. Some recipients may lie about eligibility, some retailers illegally trade benefits for cash, and criminals may steal benefits by skimming EBT cards.
In September 2025, the most recent month with available data, the USDA spent over $72.6 million on SNAP benefits in Minnesota. While the federal government pays for benefits, states share responsibility for administering the program.
Impact on Minnesota residents
The funding freeze raises concerns for hundreds of thousands of low-income residents who rely on SNAP to buy food. While the USDA covers benefit costs, the suspension creates uncertainty around administration and future payments if the dispute continues. The letter was also addressed to Minneapolis Mayor Jacob Frey, accusing both state and city leaders of “failed leadership and abysmal financial management oversight.”
Governor Walz responds
Governor Walz defended the state’s commitment to helping vulnerable people and also acknowledged the damage caused by fraud.
“Minnesota is a great place to live. We rank among the top states for quality of life, affordability, safety, retirement-friendliness and job opportunity. We are not a state that chooses to let people go hungry.”
He added further, “But we cannot effectively deliver programs and services if they don’t have the backing of the public’s trust. And our state’s generosity has been taken advantage of by an organized group of fraudsters who’ve put their greed and self-dealing above the needs of children, seniors and people with disabilities.”
Trump administration says funding will remain suspended until Minnesota takes stronger action to verify SNAP eligibility and address fraud concerns. Until then, the standoff leaves the future of key food assistance programs in the state uncertain.