US Department of Health and Human Services Freezes Childcare Funding Amid Fraud Allegations
The Department of Health and Human Services (HHS) has announced a freeze on all childcare payments to every state. Funds will only be released once states provide detailed proof that the payments are being spent legitimately. Recipients must submit extensive documentation, including attendance records, licensing information, inspection and monitoring reports, as well as details of complaints and investigations, to access these funds.
Minnesota's childcare funding had already been frozen earlier, following allegations of fraud at Somali American daycare centers in Minneapolis. This announcement was made by HHS Deputy Secretary Jim O’Neill and Assistant Secretary Alex Adams. However, these allegations were prompted by a viral video which has not been independently verified by other media outlets, and previous reporting has questioned the validity of such fraud claims within Minnesota's social safety net.
A spokesperson for the Department has stated that it is incumbent upon the states to ensure that federal dollars are used for legitimate purposes. The freeze and the investigative actions come amid intensified anti-Somali American rhetoric from President Trump, including public criticisms targeting Ilhan Omar during cabinet remarks in December.
In response, Minnesota Governor Tim Walz condemned the federal funding freeze, asserting that it is part of a broader political strategy which he described as Trump's "long game." The article was published on 31 December 2025.
