The U.S. Department of Health and Human Services has stopped federal child care payments to Minnesota after reports of empty centers and possible fraud.
Federal Child Care Funds Frozen in Minnesota Amid Fraud Claims | Columbus News
The U.S. Department of Health and Human Services has suspended federal child care funding to Minnesota following a controversial report that revealed numerous licensed centers were empty despite claiming care for hundreds of children. Deputy Secretary Jim O’Neill stated that the pause will remain in effect while new safeguards are implemented nationwide and a comprehensive audit is ordered to Minnesota Governor Tim Walz. A federal fraud hotline has also been established to receive tips.
Minnesota officials dispute the funding freeze, saying several facilities were temporarily closed due to licensing compliance issues and accusing federal leaders of politicizing essential child care support. The investigation comes as federal agents look into broader concerns about misuse of taxpayer dollars, including previous state issues such as the $250 million “Feeding Our Future” fraud case.
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