At a Glance
- Trump administration freezes $185 million Minnesota child-care funding.
- Demands audit of Somali-run day-cares after $100 million fraud claim.
- Gov. Walz calls the move political.
- Why it matters: the funds support 19,000 children, and fraud threatens essential services.
On Tuesday, the Trump administration announced it would freeze the $185 million a year that Minnesota receives for child-care programs and ordered an audit of certain day-care centers after a series of fraud allegations.
Freeze of Child-Care Funds
Deputy Secretary Jim O’Neill said on X that the freeze is a response to “blatant fraud that appears to be rampant in Minnesota and across the country.”
Jim O’Neill stated:
> “We have turned off the money spigot and we are finding the fraud.”
- $185 million annually supports 19,000 children.
- Funds are paid through the Administration for Children and Families.
- Payments now require receipt or photo evidence.
Audit Demand and Fraud Allegations
O’Neill referenced a right-wing influencer who claimed Somali-run Minneapolis day-cares committed up to $100 million in fraud.
Jim O’Neill added:
> “We have demanded Walz submit an audit of these centers that includes attendance records, licenses, complaints, investigations and inspections.”
Gov. Tim Walz replied on X:
> “He’s politicizing the issue to defund programs that help Minnesotans.”
| Program | Alleged Fraud |
|---|---|
| Somali-run day-cares | $100 million |
| Pandemic food fraud | $300 million |
| Federal child-care funds | $18 billion |
The allegations stem from a $300 million pandemic food fraud scheme involving Feeding Our Future, which led to 57 convictions in Minnesota.
State and Federal Response
Assistant Secretary Alex Adams said the $185 million should help 19,000 children.
Alex Adams noted:
> “That money should be helping 19,000 American children, including toddlers and infants. Any dollar stolen by fraudsters is stolen from those children.”
The federal government has launched a fraud-reporting hotline and email address, and will require justification and evidence before disbursing child-care funds.
Key Takeaways
- The freeze halts $185 million that supports 19,000 children.
- An audit of Somali-run day-cares seeks to uncover $100 million in alleged fraud.
- Federal agencies now demand receipts or photo evidence before disbursing child-care funds.
The move underscores a broader effort to curb fraud in federally funded programs while highlighting the tension between federal oversight and state administration.
