The U.S. Department of Health and Human Services (HHS) announced on Tuesday that it is halting all child care payments to Minnesota due to an ongoing investigation into suspected fraud involving child care centers in the state.
“You may have seen reports about serious allegations that Minnesota has funneled millions in taxpayer dollars to fraudulent child care centers over the last decade,” HHS Deputy Secretary Jim O’Neill stated on X.
In a video message, O’Neill pointed to a viral clip released recently by independent journalist Nick Shirley, which exposed alleged fraud at a Minnesota child care and learning center.
In this video, many facilities appeared to be shut down, even though they had reportedly received substantial government funding. “We suspect that Minnesota has let scammers and fake daycares drain millions from taxpayers over the past ten years,” he remarked.
To address this issue, O’Neill has implemented measures requiring that payments made to the Department of Children and Families demand proof of legitimacy, such as receipts or photos, before being sent to any state.
Additionally, the agency is asking Minnesota Governor Tim Walz to provide a thorough audit of the centers mentioned in Shirley’s video, which should include documentation such as attendance records, licenses, complaints, investigations, and inspections.
Furthermore, HHS has established a hotline dedicated to reporting fraud.
A spokesperson for Walz’s office claimed the HHS actions are politically driven. They pointed out, “While the president releases fraudsters from prison, governors are working to combat fraud.” They described this move as a blatant attempt to politicize the issue and undermine programs benefiting Minnesotans.
In a post on X, Walz suggested that this situation was part of a broader “long game” by former President Donald Trump, emphasizing, “We have worked hard to crack down on scammers. This is a serious concern, but it seems he is using it to defund programs assisting Minnesotans.”
According to Alex Adams, assistant secretary for HHS’s Office of Children and Families, the office contributes $185 million annually in child care funding to Minnesota. “That funding is meant to support around 19,000 American children, including infants and toddlers. Each dollar stolen is a dollar taken from those children,” Adams stated.
He noted that he had spoken with the director of the Minnesota Office of Child Care Services on Monday, but the director could not confidently say whether these fraud allegations were isolated incidents or indicative of more widespread issues throughout the state.
