The Trump administration is cutting off all childcare payments to Minnesota and demanding a comprehensive audit of the state’s day care centers as a mushrooming billion-dollar fraud scandal engulfs the state’s human services department.
“We have frozen all child care payments to the state of Minnesota,” Deputy Health and Human Services Secretary Jim O’Neill wrote on X Tuesday afternoon, days after a viral video investigating alleged fraud at day care centers in the state drew national attention.
O’Neill said Minnesota has “funneled millions of taxpayer dollars to fraudulent daycares across Minnesota over the past decade,” and outlined three actions the department has taken in an attempt to cut off the flow of exploitable funds.
The first action will impose the requirement for “a receipt or photo evidence” for any payments made to states through the US Administration for Children & Families (ACF).
O’Neill said he has “demanded” Minnesota Gov. Tim Walz conduct a “comprehensive audit” of the centers highlighted.
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