Trump Administration Freezes Federal Childcare Funding in Minnesota Amid Fraud Allegations
The Trump administration has frozen federal funding for Minnesota childcare programs amid allegations of widespread fraud, continuing investigations that extended into the Biden administration era. HHS Deputy Secretary Jim O’Neill stated the freeze aims to address what he described as rampant, blatant fraud, with the department having turned off the money spigot.
The decision followed a video by a right-wing influencer from Minneapolis, which prompted Homeland Security officials to question daycare workers regarding alleged fraudulent activities. These investigations trace back to 2022 indictments involving 47 defendants in a $250 million scheme exploiting a COVID-era federal child nutrition program. Ultimately, 57 individuals were convicted in related "Feeding Our Future" cases.
In December, a federal prosecutor suggested that half or more of roughly $18 billion in Minnesota federal funds disbursed since 2018 across 14 programs may have been stolen, noting that most defendants were Somali Americans. In response, former President Trump has used these allegations to promote policies targeting refugees from Somalia, prompting Representative Ilhan Omar to urge caution against scapegoating the entire community.
To combat fraud, the administration will require justification and receipts or photo evidence for nationwide payments distributed by the Administration for Children and Families. Additionally, a fraud reporting hotline and email have been launched to facilitate reporting.
Minnesota Governor Tim Walz criticized the freeze, calling it politicizing and defunding essential programs. He promised an audit to be completed by late January to assess the extent of fraud and emphasized continuing collaboration with federal partners.
