Could The Trump Administration Freeze Tax Refunds To Minnesota?

ST. PAUL, MN — As President Donald Trump freezes millions of dollars in federal funding to Minnesota over alleged fraud, some residents may be wondering whether the federal government could go even further and block tax refunds to Minnesotans.

To date, no plan is in place.

And under federal law, that is not something the president has the authority to do.

Recent federal actions against Minnesota have included a roughly $129 million freeze of food assistance funding through the U.S. Department of Agriculture and a separate freeze of federal child care payments imposed by the U.S. Department of Health and Human Services.

Administration officials have said those actions are tied to alleged widespread fraud in state-administered programs.

Minnesota Attorney General Keith Ellison has criticized the child care funding freeze as reckless and potentially illegal, saying it appears to rely on unverified claims rather than established evidence.

Ellison has said his office is exploring legal options to block the funding suspension.

The child care freeze affects a federal aid stream worth roughly $185 million annually to Minnesota. A federal judge has already temporarily blocked similar funding freezes affecting Minnesota and several other states while legal challenges proceed.

Federal tax refunds, however, operate under a different legal framework.

Tax refunds are administered by the Internal Revenue Service under federal tax law passed by Congress. Refunds are issued based on individual tax filings and statutory formulas, not discretionary executive decisions.

There is no mechanism in federal tax law that allows the president, including Trump, to freeze or withhold tax refunds from residents of a particular state based on policy disputes or enforcement actions.

While federal agencies may have limited authority to suspend specific program funding under certain circumstances, federal income tax refunds are not among the tools available to the executive branch.