Archive · 24 Dec 2025
Trump Administration Halts $5.5M in SBA Funds to Minnesota
The Trump administration has decided to stop sending $5.5 million each year to Minnesota.
They say this is because some people and businesses in Minnesota might have cheated with government loans.
The administration is investigating these cases and says they don't trust Minnesota to handle the money properly.
Minnesota's governor, Tim Walz, disagrees.
He says the cheating shows problems with federal programs, not the state.
A big nonprofit in Minnesota, called Feeding Our Future, is involved in the largest fraud case related to pandemic relief.
The House Small Business Committee is also asking for more information about the funds.
The Trump administration is halting $5.5 million in annual funding to Minnesota over allegations of fraud in government loans.
SBA Administrator Kelly Loeffler announced the halt, citing dozens of investigations and a lack of trust in Minnesota's administration of federal funds.
Minnesota Governor Tim Walz's office argues that the fraud exposes weaknesses in federal programs and that the administration is unfairly blaming the state.
The House Small Business Committee has requested information about federal pandemic relief funds in Minnesota connected to the fraud scandal.
The Minnesota nonprofit Feeding Our Future is at the center of the largest pandemic relief fraud case in US history.
- Who
- The Trump administration and Minnesota Governor Tim Walz
- What
- Halt of $5.5 million in annual funding to Minnesota over alleged fraud
- When
- Announced on Tuesday (specific date not provided)
- Where
- Minnesota, USA
- Why
- Allegations of fraud in government loans and criticism of the state's handling of federal funds
Trump Administration
Minnesota Governor's Office
Funding Halt
Trump Administration
The administration is halting $5.5 million in annual funding to Minnesota due to alleged fraud in government loans, citing a lack of trust in the state's administration of federal funds.
Minnesota Governor's Office
The funding halt is seen as a political move to blame the state for federal program weaknesses, with the governor's office arguing that the fraud exposes failures in federal systems.
Fraud Investigations
Trump Administration
The administration is conducting dozens of investigations into alleged fraud, including cases involving COVID-era emergency loans and Somali refugees.
Minnesota Governor's Office
The governor's office acknowledges the fraud but argues that the federal government should address the weaknesses in its own programs rather than blaming the state.
- Amount of Funding Halted
- $5.5 million
- Reason for Halt
- Alleged fraud in government loans
- Announced By
- SBA Administrator Kelly Loeffler
- Minnesota Nonprofit Involved
- Feeding Our Future
- House Committee Action
- Sent a letter to Loeffler requesting information about federal pandemic relief funds in Minnesota