Minnesota Gov. Tim Walz on Tuesday condemned the Trump administration’s decision to pause federal funding for Minnesota amid fraud allegations in state COVID-era programs. In a social media post, Walz charged that the move is part of what he called Trump’s long game—a politicized campaign to defund programs that help Minnesotans. “We’ve spent years cracking down on fraudsters,” Walz wrote on X. “It’s a serious issue—but this has been his plan all along. He’s politicizing the issue to defund programs that help Minnesotans.”
The Small Business Administration (SBA) and the Department of Health and Human Services (HHS) announced this week that they were pausing disbursements tied to Minnesota’s federally funded programs, including the Supplemental Nutritional Assistance Program (SNAP) and Medicaid, amid investigations alleging fraud infiltration of those programs and the theft of millions in taxpayer dollars.
Attorney General Pam Bondi said Monday that over 60 people have been convicted of fraud in Minnesota, and 98 have been charged. The SBA said its focus is on fraud in two COVID-era state programs: the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loans (EIDL). HHS is pausing disbursements of child-care funds amid allegations of fraud within the state’s daycare system.
Walz’s office framed the pause as a federal tactic to undermine state efforts to clamp down on fraud and to pull funding from services Minnesotans rely on. While fraud investigations have drawn national attention, officials note that dozens of convictions and charges have appeared over the years.
Misty Severi of Just The News reported the developments, with coverage noting the tension between state enforcement and federal oversight in Minnesota’s COVID-era programs.