Federal scrutiny has expanded beyond the SBA. The USDA and Treasury Department are now investigating misuse of SNAP and other benefit programs, while the Department of Health and Human Services has frozen childcare payments to Minnesota amid reports that taxpayer dollars were funding daycares that appeared vacant, according to independent reporting.
Trump administration officials point to failures in the Paycheck Protection Program and Economic Injury Disaster Loan initiatives as prime examples of Minnesota’s corruption. Approximately $2.5 million in PPP and EIDL funds were tied directly to fraudulent activity, while an additional $430 million in PPP loans flagged as potentially fraudulent were still disbursed and, in many cases, forgiven under the previous administration.
She warned that taxpayers would no longer foot the bill for fraudulent schemes and that federal resources would be redirected to law-abiding small business owners. “SBA’s responsibility is to taxpayers and small business owners, not to criminals or the politicians who enable them,” Loeffler said.
The action has drawn praise from supporters of President Trump, who argue it reflects a return to strict accountability and enforcement after years of permissive governance. They say Minnesota’s systemic failures provide a cautionary tale of what happens when political correctness and ideology override fiscal responsibility.
