US suspends $129M in federal aid to Minnesota

By Darren Lyn

HOUSTON, United States (AA) - The US Department of Agriculture (USDA) announced Friday it is suspending more than $100 million in federal aid to the state of Minnesota.

The move comes in the wake of a multi-billion-dollar childcare fraud scandal uncovered after an intensive federal investigation.

In a letter addressed to Minnesota Gov. Tim Walz and Minneapolis Mayor Jacob Frey, Agriculture Secretary Brooke Rollins spelled out the consequences of the scandal and the ramifications it will have on Minnesotans.

"Because of your failed leadership and abysmal financial management oversight, 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.

The city and state must provide the USDA with documentation and justification of federal funding usage within 30 days.

"Going forward, all transactions on awards ... will require such payment justification," said Rollins. "If those payment justifications are not received, awards will remain suspended."

The Department of Health and Human Services (HHS) also froze funding for several childcare grant programs in Minnesota earlier this week.

The USDA's decision is just the latest fallout from the scandal.

"While your administrations have turned a blind eye to documented fraud, the Trump Administration has made clear that fraud, waste, and abuse are unacceptable," said Rollins.

"The American people deserve to know that their taxpayer dollars are helping those in need--not criminals," she added.