AUSTIN, Texas — Gov. Greg Abbott on Monday ordered two Texas state agencies to expand investigations into potential child care fraud, citing a widening federal probe into alleged misuse of public funds in Minnesota’s subsidized child care system.
Abbott directed the Texas Workforce Commission and the Texas Health and Human Services Commission to strengthen anti-fraud measures by increasing site visits to child care providers, reviewing data collection practices, and identifying vulnerabilities that could allow misuse of taxpayer funds. The governor said Texas already maintains strong safeguards but argued additional oversight is necessary to prevent systemic abuse.
In a statement, Abbott referenced investigations underway in Minnesota, where federal authorities are examining allegations of large-scale fraud tied to subsidized child care and other social services programs. Abbott contrasted the two states’ records, noting Texas reported an improper payment rate of 0.43 percent, compared with Minnesota’s 11 percent rate.
The directive follows heightened national attention on Minnesota’s programs after the Trump administration expanded its inquiry and independent reporting highlighted alleged fraud involving some Somali-run child care centers. Abbott said Texas would not tolerate similar abuses and emphasized that proactive enforcement is essential to maintaining public trust.
Texas agencies are expected to submit a progress report to the governor’s office by Jan. 30, with a final report due Feb. 27. Abbott said his administration would continue working across state agencies to protect taxpayer dollars while ensuring access to affordable child care.
Minnesota Gov. Tim Walz ended his reelection bid amid scrutiny over his handling of the situation, as the White House signaled the Justice Department may pursue further accountability related to the case.
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