UPDATE: The US Department of Health and Human Services (HHS) has just announced an immediate freeze on federal child care funding for all states, a drastic measure triggered by a sweeping fraud investigation centered in Minnesota. This decision comes after allegations of a massive scam involving Somali-run daycare centers, estimated to have siphoned off over $110 million in taxpayer dollars.
The HHS will only release funds once states can provide proof that federal resources are being used legitimately. HHS spokesperson Andrew Nixon emphasized that all states must submit their “administrative data” for review, regardless of whether they are suspected of fraud. States identified as potentially involved in fraudulent activities will need to present additional documentation, including attendance records, licensing, and inspection reports.
Earlier today, Nixon stated, “The onus is on the state to ensure that these funds, these federal dollars, taxpayer dollars, are being used for legitimate purposes.” This announcement follows a previous freeze on child care payments specifically to Minnesota, where reports revealed that millions had been funneled to fraudulent daycare operations over the last decade. The agency is now demanding a comprehensive audit from Minnesota Governor Tim Walz.
Governor Walz has defended his administration’s integrity, insisting that efforts to combat fraud have been ongoing. He accused former President Donald Trump of politicizing the issue to undermine programs benefiting Minnesotans. “This is Trump’s long game,” Walz stated. “We’ve spent years cracking down on fraudsters. It’s a serious issue – but this has been his plan all along.”
The investigation gained momentum after Nick Shirley, a conservative influencer, released a detailed YouTube exposé outlining the alleged fraud scheme. His findings have prompted the Department of Homeland Security to initiate a “massive investigation” into child care and related fraud. FBI Director Kash Patel indicated that resources have been significantly increased in Minnesota, warning that the current cases represent only “the tip of a very large iceberg.” He added that those found guilty could face serious repercussions, including “denaturalization and deportation.”
This federal funding freeze affects thousands of child care providers across the nation, raising concerns about the immediate impact on families relying on these services. The HHS’s stringent measures reflect a growing urgency to root out fraud in public funding programs, and the situation continues to develop.
As investigations unfold, state officials and child care providers will be closely monitored to ensure compliance with federal regulations. The next steps include audits and further investigations, which are expected to intensify in the coming weeks.
Stay connected for ongoing updates as this crucial story develops, impacting families and communities nationwide.
