Financial earthquake at the behest of Trump: 129 million dollars blocked on the charge of massive fraud in an American state
Illustrative photo: A protest in front of the state Capitol on January 9, 2026 in St. Paul, Minnesota. Credit line: Stephen Maturen / Getty images / Profimedia
The Trump administration has announced the suspension of $129 million in federal payments to the state of Minnesota amid allegations of widespread fraud. In response, state authorities are denouncing the measure as “political revenge” and threatening an imminent court case to block what they see as an illegal cut of vital funds, according to The Guardian.
USDA Secretary Brooke Rollins released a letter to Minnesota Governor Tim Walz and Minneapolis Mayor Jacob Frey on Friday. In this document, Rollins informs them of the administration's decision, citing investigations into alleged fraud by local nonprofits and businesses.
“Despite a fraud scandal of staggering magnitude, your administrations refuse to provide basic information or take basic steps to stop this phenomenon. The Trump administration refuses to allow such fraud to continue,” Rollins said.
The USDA Secretary directed Walz and Frey to provide detailed justifications for all federal expenditures from January 20, 2025 to the present within 30 days. She also required that all future federal payments to the state be subject to the same justification procedure.
“We are in contact with state partners to assess the impact of such a sweeping reduction in funding on our most vulnerable residents,” said Brian Feintech, a spokesman for the city of Minneapolis, in a statement to the publication. The Guardian. “It is clear that Minneapolis is the latest target of the Trump administration, which is willing to sacrifice the well-being of Americans for political ends.”
“See you in court”
Minnesota Attorney General Keith Ellison publicly responded to Rollins' post, writing on the X platform: “I will not allow you to deprive Minnesotans of the help they need. See you in court.”
The USDA's announcement comes at the same time as a federal court ruling that the Trump administration cannot block funding for child care subsidies and other support programs for low-income families in five Democratic-led states, including Minnesota.
Over the past year, the Trump administration has repeatedly targeted Minnesota over allegations of fraud, targeting the state's Somali community in particular. Federal prosecutors estimate that up to $9 billion was stolen through fraudulent schemes related to this community.
In November 2025, President Trump ended legal protections for Somali migrants in this state, claiming that “Somali gangs are terrorizing the people of this great state and BILLIONS of dollars are missing. Send them back to where they came from.”
