The Trump administration is widening a federal freeze on child care funding beyond Minnesota as the U.S. Department of Health<\/b>
\nThe Trump administration is widening a federal freeze on child care funding beyond Minnesota as the U.S. Department of Health and Human Services (HHS) ramps up a nationwide review aimed at rooting out fraud.
Deputy HHS Secretary Jim O\u2019Neill announced Tuesday that the agency froze all federal child care payments to Minnesota as officials investigate allegations of widespread fraud in the state\u2019s subsidy system. The funding freeze will extend to other states as federal officials review how taxpayer dollars are used, according to multiple reports.
\u201cHHS has a clear duty to verify the proper use of taxpayer funds,\u201d spokesman Andrew Nixon said in a statement, as reported by the New York Post. \u201cThe documentation process exists to rule out fraud and confirm that funds are supporting legitimate child care providers.
Minnesota Gov. Tim Walz pushed back after the Trump administration moved to freeze federal child care funding in the state, accusing the White House of using fraud concerns to justify the action.
\u201cThis is Trump\u2019s long game. We\u2019ve spent years cracking down on fraudsters. It\u2019s a serious issue \u2013 but this has been his plan all along. He\u2019s politicizing the issue to defund programs that help Minnesotans,\u201d Walz wrote.
President Donald Trump said that investigators expect to uncover large-scale abuse elsewhere, including in California.
\u201cThere is more FRAUD in California than there is in Minnesota, if that is even possible,\u201d Trump wrote on TRUTH Social. \u201cWhen you add in Election Fraud, then they are tied for first. Two Crooked Governors, two Crooked States!\u201d
The move follows viral footage that YouTuber Nick Shirley posted Friday showing several purported Somali-run daycare centers in Minnesota that appeared to have no children present during his visits, despite receiving state funds. KSTP reported that the Quality \u201cLerning\u201d Center accumulated 95 violations cited by a Minnesota agency between 2019 and 2023.
Several state employees have accused Walz of retaliating against whistleblowers who flagged the schemes and as federal prosecutors pursued multiple cases, saying Walz bore responsibility for the fraud and rejected early warnings. Walz later acknowledged the problem during a Nov. 30 appearance on Meet the Press, saying Minnesota \u201cattracts criminals.\u201d
The HHS did not immediately respond to the Daily Caller News Foundation\u2019s request for comment.
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