Trump Admin Suspends $129M in Minnesota Benefits Amid Fraud Probes

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Source: The Guardian
Trump Admin Suspends $129M in Minnesota Benefits Amid Fraud Probes
Photo: The Guardian
TL;DR Summary

The Trump administration halted $129 million in federal benefit payments to Minnesota amid investigations into fraud by local nonprofits and businesses, demanding justification for all state spending since January 2025 and stating that future payments require the same. Minneapolis officials and Minnesota’s attorney general criticized the move and pledged to challenge it in court. The episode occurs amid broader fraud probes in the state, including schemes linked to Minnesota’s Somali population, with the FBI increasing its investigation and federal prosecutors estimating up to $9 billion stolen. The development comes as political controversy surrounds Minnesota’s leadership and policy decisions, with Governor Walz announcing he will not seek a third term.

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