Minneapolis, Minn. — The Trump administration has expanded federal oversight of childcare funding nationwide while denying that it has frozen payments to Minnesota, following heightened scrutiny sparked by fraud allegations involving some child care providers in the state.
The Department of Health and Human Services said this week it is implementing tighter reporting and auditing requirements through its Administration for Children and Families to prevent misuse of federal childcare funds. The move follows viral allegations of fraud at several Minnesota childcare centers, though state regulators have said the facilities cited in online videos remain in compliance with licensing rules.
Confusion emerged after HHS initially stated that all childcare payments to Minnesota had been frozen. A department spokesperson later walked back the claim, saying no statewide freeze had occurred. Still, providers reported significant payment disruptions. The Holland Center in Minnesota said it expected roughly $212,000 in late December but received about $22,000, with officials warning delays of up to 90 days could force layoffs or closures.
HHS outlined three actions being taken nationwide: requiring additional documentation for childcare payments, auditing centers accused of fraud, and establishing a public fraud reporting hotline and email. Assistant Secretary Alex Adams cited approximately $185 million in childcare funds tied to Minnesota.
The FBI has also deployed personnel to Minnesota to investigate alleged large-scale fraud, according to Director Kash Patel. Minnesota Gov. Tim Walz criticized the federal response as politically motivated, while Attorney General Keith Ellison warned that aggressive enforcement could threaten access to essential childcare services.
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