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It’s not just about sending federal law enforcement officers in minnesota.
president Donald TrumpThe Trump administration has also lashed out at the state, threatening to withhold billions of dollars in federal funds, much of it intended to help low-income families with food assistance, health care and child care, and filing new lawsuits against the state.
The Trump administration has launched a broad crackdown on Democratic-controlled states, but Minnesota is a prime example, with the president last month calling the state’s Somali population “trash” and targeting them with actions not seen elsewhere.
In most cases, the government has not spelled out its specific plans, and it is unclear whether some of the money will actually stop flowing — or, if so, when.
The Trump administration has also issued a wave of threats to halt some federal funds flowing to other states, including to “sanctuary cities” that restrict cooperation with federal immigration officials and their states.
Minnesota was singled out for some of the cuts as Trump repeatedly criticized the governor. Tim Waltz Fraud in Federal Programs. Waltz, 2024 democracy Vice presidential candidate and high-profile Trump critic ended his campaign for a third term this month, saying he could not campaign while fending off attacks and running the country.
Minnesota is fighting back in court or elsewhere.
Here’s a look at what’s happening with Minnesota’s program freeze.
Ministry of Agriculture suspends funding
The USDA said it would freeze funding for the state and its largest city, Minneapolis, but gave few details. “No more giving handouts to thieves,” Agriculture Minister Brooke Rollins said when announcing the action on social media on January 9.
In a letter to Walz and the mayor of Minneapolis Jacob FreyShe cited a major fraud case involving a USDA-funded pandemic relief program that was uncovered in 2022 in which 78 people were charged and 57 were convicted.
Rollins said she would suspend all current and future incentives to the city and state and require them to provide justification for payments for all transactions since Jan. 20, 2025, the date Trump returned to office. In order to obtain future funding, justification also needs to be provided.
Rollins said the total awards at risk were more than $129 million, but did not specify what projects were included. Her department has not yet clarified whether that amount includes payments to individuals or just payments to government entities.
The freeze does not appear to include funding for the Supplemental Nutrition Assistance Program, which helps about 1 in 12 Minnesota residents buy groceries, according to Rollins. In 2024, Minnesota residents received more than $850 million through the program. However, the Minnesota Department of Children, Youth and Families website states that the department is analyzing the impact on SNAP.
The National School Lunch Program, which provides and subsidizes school meals, also appears to be excluded. Minnesota is expected to receive more than $240 million in funding for the budget year that ends Sept. 30.
The Department of Agriculture also operates programs targeted at food producers, including disaster assistance and price supports.
Minnesota Agriculture Commissioner Tom Peterson said at a news conference Wednesday that it’s unclear which projects may lose funding, but the state has begun receiving notices of some suspensions, including from poultry testing labs. He said there was uncertainty about who would pay if bird flu was discovered on a farm and the birds had to be removed.
Minnesota calls for reducing Medicaid payments
The Centers for Medicare and Medicaid Services also told Minnesota last week that it intends to withhold $515 million every three months from 14 Medicaid programs deemed high risk after rejecting corrective action plans requested by the federal government over fraud allegations.
Programs identified as high risk include adult companionship services, residential treatment services and non-emergency medical transportation.
The amount withheld is equivalent to one-quarter of the federal funds earmarked for these programs.
The state Department of Human Services said on a conference call with reporters Tuesday that it is filing an administrative appeal of the freeze.
They said the department has been emphasizing anti-fraud measures for more than a year and questioning the federal action, which they said was unlike anything they had seen in other states.
“Minnesota cannot afford to lose more than $2 billion annually in funding for these programs without having catastrophic consequences for the people we serve,” said Interim Human Services Commissioner Shireen Gandhi, adding that the state could not find other examples of similar federal decisions.
“This is not corrective action,” she said. “This is a punitive action.”
Court halts freeze on funding for child care, other social services
The U.S. Department of Health and Human Services told Minnesota in late December that it was freezing funding from the Child Care and Development Block Grant, which provides child care subsidies to low-income families, and told the state that attendance records and other information must be submitted before the money can flow again.
Last week, the Trump administration said it would stop child care payments to Minnesota and four other Democratic-led states, as well as Temporary Assistance for Needy Families, which provides job training and cash assistance, and the Social Services Block Grant, which funds a variety of social services.
Those five states — along with Minnesota, California, Colorado, Illinois and New York — filed lawsuits. Advocates and officials warn that ending child care subsidies would put many day care providers at risk of layoffs or closures. These could put all client families in a difficult position, not just those who rely on subsidies.
Last week, a federal judge ruled that the government could not temporarily freeze the funds.
Federal government files lawsuit over government hiring practices
The federal government launched another round of attacks on Minnesota government Wednesday.
The U.S. Department of Justice filed a lawsuit in federal court over the state’s affirmative action hiring requirements. The lawsuit seeks to end a program aimed at diversifying the government workforce, claiming “Minnesota requires its hiring managers to jump through additional hurdles to hire employees whose skin color or sex chromosomes are undesirable.”
The lawsuit also seeks funding for affected and future employees.
The state attorney general’s office said it would respond in court.
