Trump Admin Halts All Childcare Payments To Minnesota After Massive Fraud Allegations: ‘We Have Turned Off The Money Spigot’
Federal authorities say they have confirmed at least $1 billion in fraudulent childcare payments in Minnesota so far, with 92 individuals already charged. According to the US Attorney’s office, 82 of those charged are Somali immigrants, and prosecutors have cautioned that the total scope of the scheme could ultimately reach $9 billion.
Against that backdrop, the Trump administration has moved to cut off all childcare-related payments to the state and is pressing for an extensive review of Minnesota’s day care system, as scrutiny intensifies around the state’s human services department.
Deputy Health and Human Services Secretary Jim O’Neill announced the decision on Tuesday, writing on X, “We have frozen all child care payments to the state of Minnesota,” just days after a widely shared investigative video focused national attention on alleged fraud involving local day care providers.
O’Neill accused state officials of allowing massive abuse of public funds, saying Minnesota has “funneled millions of taxpayer dollars to fraudulent daycares across Minnesota over the past decade.” He detailed three steps the department is taking to prevent further misuse of federal money.
As part of the first measure, O’Neill said the federal government will now require “a receipt or photo evidence” before releasing any payments to states through the US Administration for Children & Families.
He also said he has “demanded” that Minnesota Gov. Tim Walz carry out a “comprehensive audit” of the day care centers identified in the investigation. “This includes attendance records, licenses, complaints, investigations, and inspections,” he wrote.
O’Neill pointed specifically to a YouTube video published Friday by Nick Shirley, who visited multiple Minneapolis-area day care sites that had received millions in public funding but appeared to be shuttered or not operating.
In addition, the Department of Health and Human Services has set up a dedicated hotline and email address at childcare.gov for reporting suspected fraud. “Whether you are a parent, provider, or member of the general public, we want to hear from you,” O’Neill said.
Summing up the administration’s posture, he added, “We have turned off the money spigot and we are finding the fraud.”
{Matzav.com}
