The Trump administration has officially announced the suspension of child care funding to Minnesota, ignited by persistent allegations of fraud involving state-funded day care centers. Deputy Secretary of Health and Human Services Jim O’Neill voiced concerns over what he termed as 'blatant fraud' not only present in Minnesota but across the nation.
In a post on the social media platform X, O’Neill claimed that their department had decided to 'turn off the money spigot' until a thorough audit is conducted. The details of this audit will probe operational validity — including attendance records and official complaints — for centers reportedly involved in the fraud schemes.
The political ramifications of this suspension have been significant, prompting Minnesota Governor Tim Walz to assert that this move exemplifies 'Trump’s long game' of undermining state-level programs that benefit families. In his response, Walz emphasized that while fraud should be scrutinized, the federal government should not politicize these issues to the detriment of aid meant for children.
The announcement follows a continued investigation into Minnesota’s child care system, notably spotlighting allegations against Somali-run businesses. Recent claims suggested that these entities may have committed fraud amounting to $100 million, spurred by an influencer's viral claims.
In addition to the freezing of funds, O’Neill also remarked on forthcoming policy changes, indicating that future disbursements from the Administration for Children and Families would necessitate proper justifications, including photographic proof, before any funds are transferred.
This freezing of funds, according to Assistant Secretary Alex Adams, represents a significant blow to the annual budget of $185 million provided to Minnesota's child care services, which is crucial for approximately 19,000 American children. Adams also highlighted the need for an urgent audit to ascertain the extent of potential fraud, aiming for more operational transparency.
Amid these tensions, prominent voices including U.S. Rep. Ilhan Omar have called for understanding, urging the public not to penalize the entire Somali community for the actions of a few. The audit, expected by late January, is anticipated to deliver a clearer picture of the fraud's scope and drive heightened efforts to combat such activities.






















