Investigation into Minnesota Child Care Assistance Program
In the last eight years, Minnesota’s Child Care Assistance Program (CCAP) has distributed over $67 million in public subsidies to nine childcare providers, some of which were recently raided by federal agents. An investigation by a local news outlet, KSTP, pointed out that it remains unclear how much of this funding might be fraudulent, as no charges have been brought forward yet. While the specific daycare centers involved in the federal raids haven’t been fully disclosed, records show that several recipients of CCAP grants were targeted.
A review of public records showed a substantial increase in state payments through the CCAP program to these nine establishments, jumping from roughly $8 million in 2023 to over $16 million in 2025. Interestingly, the number of children served during this period didn’t change significantly.
Phil Klinkie, a former state lawmaker and member of the Minnesota Taxpayers Federation, expressed concerns about public discontent with the situation, stating that voters are frustrated, but he doesn’t attribute the blame to any specific party.
Notably, just last week, a bill aimed at enhancing oversight and increasing penalties for fraudulent activities among childcare providers was blocked by Democrats. The Minnesota House Republican Caucus criticized this move, suggesting it reflects poorly on current governance.
Federal agents executed 22 search warrants at various daycares and autism centers across Minnesota as part of the ongoing investigation. Efforts to confirm the details of these raids with the FBI and other agencies were largely met with silence, except for a vague response from the Department of Health and Human Services, which stated that it doesn’t comment on ongoing litigation.
Former Minnesota Attorney General Lori Swanson highlighted that the scope of the warrants indicates investigators want to ensure that the services billed to the government were genuinely provided. She raised the question of why there has been such dramatic growth in these daycare centers without substantiated evidence of service delivery.
CCAP, which is managed by the Minnesota Department of Children, Youth and Families for families in need of affordable childcare, provided data for the investigation. Attempts to get comments from DCYF went unanswered, raising further suspicion as local news outlets relied on state representative Kristin Robbins for insights into the situation. Robbins managed to obtain some records, but the lack of transparency from DCYF continues to concern many.
