The Department of Agriculture is suspending all federal financial awards to Minnesota and Minneapolis, announced Brooke Rollins, the U.S. Secretary of Agriculture, on X. The funding cuts amount to more than $129 million.

In her letter addressed to Governor Tim Walz and Minneapolis Mayor Jacob Frey, Rollins cited the “widespread and systemic” fraud in federal benefit programs in the state and city, as well as what she called the state and city’s inability to handle federal resources without additional oversight and accountability measures.

“There is relentless proof of fraudulent use of tax dollars,” a USDA spokesperson said in a separate statement. “Minnesota must defend via payment justifications any USDA award dollars flowing through the state.”

However, the full scope of the funding freeze is unclear.

“USDA has informed us that the freeze will not apply to SNAP or WIC, and our office is currently gathering more information,” Brian Evans, press secretary for the Minnesota Attorney General’s office, said.

Previously, Minnesota Attorney General Keith Ellison and his office successfully obtained a preliminary injunction against the USDA’s attempt to freeze essential funds to the SNAP program earlier this week. In the blocked demand, USDA required Minnesota to verify the eligibility of nearly 100,000 households through in-person interviews within 30 days, or lose all SNAP funding, according to a Jan. 15 press release.

Sophia Lenarz-Coy, executive director of The Food Group, a Twin Cities-based nonprofit focused on food justice, has read the letter from Secretary Rollins, but said she is unsure what to make of it.

“I think it’s unclear whether that letter is a political letter versus how much it is truly going to result in programmatic or administrative changes,” Lenarz-Coy said.

Lenarz-Coy said Minnesota’s food needs are very high and have increased over recent years. In 2024, Minnesota saw about 9 million food shelf visits, whereas the number was around 3 million in 2020.

“It looks like 2025 will be on track for a very similar number as 2024,” she said, and cited high grocery prices as a key reason behind the increased demand.

Lenarz-Coy said that SNAP is among the most effective federal programs.

“There are incredibly low rates of fraud in the SNAP program,” Lenarz-Coy said. “It is federal money that goes directly into communities because it’s spent at local grocery stores.”

She acknowledged Minnesota has seen fraud in other programs, cases she said should be prosecuted.

“I think a decision to suspend everything to solve an unrelated problem does not make sense and would hurt a lot of people who have nothing to do with the issues at hand,” Lenarz-Coy added.

Lenarz-Coy said while it is unknown what will happen with the funding freeze, she remains hopeful.

“At this point, I would be surprised if there’s an interruption and benefits for individuals,” Lenarz-Coy said. “At least right away, because again I think a lot of this will need to get hammered out in court.”