Photo: Alamy
The Trump administration is taking action against reported fraud in Minnesota. Tuesday night, representatives from both the Department of Health and Human Services (HHS) and the Administration for Children and Families announced that the state will be cut off from federal funding for child care payments.
We have frozen all child care payments to the state of Minnesota.
— Deputy Secretary Jim O'Neill (@HHS_Jim) December 30, 2025
You have probably read the serious allegations that the state of Minnesota has funneled millions of taxpayer dollars to fraudulent daycares across Minnesota over the past decade.
Today we have taken three actions… pic.twitter.com/VYbyf3WGop
Deputy HHS Secretary Jim O’Neil and ACF Assistant Secretary Alex J. Adams posted a video on X outlining the situation. O’Neil stated, “We believe the state of Minnesota has allowed scammers and fake day cares to siphon millions of taxpayer dollars over the past decade.”
Adams explained that the ACF grants Minnesota $185 million for child care funding every year, but when he contacted the director of the Minnesota child care services office, “She could not tell me with confidence whether those allegations of fraud are isolated or whether there is fraud stretching statewide.”
This has led the ACF and HHS to require photo evidence before sending funding to any child care centers in the future. They have also opened a fraud reporting hotline where concerned citizens can report suspicions of fraud by calling: 202-690-6782 or emailing: [email protected].
In addition, they have demanded that Minnesota Governor Tim Walz provide a comprehensive audit of these centers. He must hand over attendance records, licensing information, inspection reports, investigation materials, and complaints against day care centers.
This is Trump’s long game.
— Governor Tim Walz (@GovTimWalz) December 31, 2025
We’ve spent years cracking down on fraudsters. It’s a serious issue – but this has been his plan all along.
He’s politicizing the issue to defund programs that help Minnesotans. https://t.co/7ByWjeXxu0
Waltz publicly responded online by claiming that his state has been punishing “fraudsters” for years, and that President Trump is somehow using the fraud reports to politicize the issue of using taxpayer dollars to fund daycare centers.
Independent journalist Nick Shirley originally reported on daycare fraud in Minnesota by going to these government-funded centers and discovering that masses of them were empty and run by Somali’s who refused to answer questions regarding their facilities. He also questioned government leaders who have done nothing to end and prevent fraud. The report went viral and has led millions of Americans to question Minnesota’s leadership and its goals.
