UPDATE: The US Department of Health and Human Services (HHS) has just announced a nationwide freeze on federal child care funding to all states due to a growing fraud scandal linked to daycare centers in Minnesota. This urgent move follows allegations of a widespread scam involving Somali-run childcare facilities, which have reportedly defrauded taxpayers of over $110 million.
The decision was confirmed by an HHS official who stated that federal funds will be released “only when states prove they are being spent legitimately.” The agency has mandated that all states, including those not suspected of fraudulent activity, submit their “administrative data” for review. Those states under investigation must provide detailed records including “attendance records, licensing, inspection and monitoring reports, complaints and investigations.”
HHS spokesperson Andrew Nixon emphasized that ensuring the legitimate use of taxpayer dollars falls on the states. “The onus is on the state to make sure that these funds, these federal dollars, taxpayer dollars, are being used for legitimate purposes,” Nixon told ABC News.
This unprecedented freeze follows a comprehensive audit request from Minnesota Governor Tim Walz, whose administration has faced scrutiny over the alleged funneling of millions into fraudulent daycare operations. Governor Walz defended his state’s integrity while accusing former President Donald Trump of politicizing the issue to undermine programs that assist Minnesotans. “This is Trump’s long game… He’s politicizing the issue to defund programs that help Minnesotans,” Walz stated.
The scandal gained momentum when conservative influencer Nick Shirley released a YouTube video detailing the fraud schemes, catalyzing federal investigations. In response, Department of Homeland Security Secretary Kristi Noem announced that a “massive investigation” would be launched to tackle child care fraud and other rampant issues.
FBI Director Kash Patel revealed that resources have been “surged” to Minnesota, highlighting the seriousness of the situation. He warned that these cases might only represent “the tip of a very large iceberg,” indicating that perpetrators could face severe consequences, including “denaturalization and deportation.”
The implications of this freeze are vast, affecting millions of families reliant on child care funding across the nation. As states scramble to comply with the new requirements, parents and caregivers are left in uncertainty regarding the future of their child care services.
What’s next? Authorities are urging states to act quickly, as the federal funds will remain frozen until all necessary documentation is submitted and verified. Expect further developments as investigations continue to unfold and more details emerge about the extent of the alleged fraud.
Stay tuned for the latest updates on this ongoing story as it continues to develop.
