Minneapolis, Minnesota — The Trump administration announced Tuesday it is freezing federal child care funding to Minnesota while demanding audits of certain day care providers, citing what officials described as widespread fraud involving government programs.
Deputy Health and Human Services Secretary Jim O’Neill said the freeze follows years of fraud investigations in the state and alleged that misconduct remains “rampant.” He ordered Minnesota to submit extensive documentation on child care centers, including attendance records, licensing files, inspections, and complaint histories. Federal officials also confirmed that investigators were recently in Minneapolis questioning workers at unidentified businesses as part of an ongoing probe.
Gov. Tim Walz pushed back sharply, arguing the move politicizes legitimate law enforcement efforts. Walz said Minnesota has aggressively prosecuted fraud for years, including the $300 million Feeding Our Future case that led to dozens of convictions, and accused the administration of using high-profile cases to justify defunding programs that serve vulnerable families.
The funding freeze affects roughly $185 million annually that supports child care for about 19,000 Minnesota children, according to federal officials. HHS also announced nationwide changes requiring additional documentation before child care payments are released and launched a fraud-reporting hotline.
Civil rights advocates have raised concerns that recent rhetoric disproportionately targets Minnesota’s Somali American community, many of whom have no connection to the fraud cases. Rep. Ilhan Omar urged caution against blaming entire communities for the crimes of a few, warning that broad crackdowns risk harming families and children who rely on essential services.
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