Governor Tim Walz today announced a new dashboard Minnesotans can use to track disruptions and cancellations of federal funding and their impact on services available to Minnesotans. Federal disruptions and cuts so far include grants to track measles and avian influenza, provide heating assistance, and mitigate flooding.
Despite court orders prohibiting the federal government from freezing many funding streams, disruptions to federal funds have continued. Some disruptions are short-lived. Other grants and awards are abruptly canceled altogether, resulting in layoffs and fewer services for Minnesotans.
“Decisions made by billionaires in Washington are cutting real programs that save Minnesotans money, monitor disease outbreaks, and keep us safe. And they’re just getting started on their promised cuts to Social Security and Medicaid,” said Governor Walz. “Sweeping changes at the federal level are happening with little to no warning or public process. By tracking these changes, we’re doing what we can to keep Minnesotans informed on what we know and what’s to come.”
Minnesota state agencies report federal funding disruptions or cancellations to Minnesota Management and Budget (MMB), which tracks the ever-changing data and will post information about impacted funds to the new website, mn.gov/mmb/budget/federal-investments/data-and-reporting/, every weekday.
The site lists which grants or awards were disrupted or canceled, the federal agency that awarded the funds, the state agency that oversees the funds, a description of the impacted grant, the total award, the amount of the award impacted by the federal action, and the date of the action.
“One in every three dollars Minnesota state government spends currently comes from the federal government,” said MMB Commissioner Erin Campbell. “Consistent, timely access to federal dollars is needed to continue providing the services Minnesotans depend on. That includes funding for Medicaid, food assistance, childcare assistance, and employment counseling and financial assistance to families in poverty, among many other programs and services. This new online resource provides transparency into federal funding disruptions impacting Minnesota.”
In fiscal year 2025 alone, Minnesota was awarded 687 federal grants and awards totaling $23.3 billion. In addition to the significant losses in funding for vital services Minnesota is already experiencing, potential cuts in federal funding for entitlement programs like Medicaid, which Minnesota is required to provide, could create huge funding holes in Minnesota’s state budget.
Federal funding cancellations have already had a significant impact on Minnesotans across a wide range of sectors, including:
Minnesota Department of Health
On March 24, the federal government cut more than $220 million in previously approved public health funding with no advance notice. Public impacts include:
- A potential rise in preventable illnesses due to reductions in funding for vaccines, disease tracking and outbreak responses
- Loss of infection-prevention training and capacity building at large long-term care facilities, as well as funding for HVAC upgrades to help prevent spread of disease
- Funding disruptions and loss for disease tracking and response in long-term care facilities, shelters, and correctional facilities
- Layoffs of 170 Minnesota Department of Health employees and retraction of job offers to nearly 20 others
Minnesota Department of Human Services
On March 25, the federal Substance Abuse and Mental Health Services Administration notified the Minnesota Department of Human Services that several grants totaling up to $27.5 million had been abruptly terminated the day before. The sudden termination of previously authorized funds will have immediate and wide-ranging impacts. The lost funding impacts:
- School-based mental health services for children
- Access to the life-saving overdose reversal drug naloxone
- Critical treatment and recovery supports for people experiencing behavioral health issues
- Access to behavioral health care
- Ability to address disparities in Minnesota’s mental health system
Minnesota Department of Agriculture
Also in March, the U.S. Department of Agriculture announced it was cancelling some already-approved grants to states. Minnesota was set to receive nearly $18 million over three years under approved agreements with the USDA. The canceled funding would have benefited Minnesota farmers, schools, early childcare operations, and food shelves.
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