At a Glance
- HHS freezes all federal child-care payments to Minnesota after a viral fraud video.
- New payment rules require justification and photo evidence before money is sent to any state.
- The freeze follows an FBI surge and political backlash from Governor TimWalz.
- Why it matters: The move cuts $185million a year in child-care support, raising questions about funding and fraud oversight across the nation.
The U.S. Department of Health and Human Services (HHS) halted all federal child-care payments to Minnesota on Tuesday, citing a viral video that alleged widespread fraud at state child-care facilities. The decision comes amid a fresh FBI investigation and a heated exchange with Minnesota’s governor.
HHS Freezes Minnesota Child-Care Funds
Deputy Secretary Jim O’Neill and Assistant Secretary Alex Adams announced the freeze in a statement and video posted on X. They said they were “turning off the money spigot” and would only release funds once states prove legitimate spending.
Deputy Secretary Jim O’Neill said:
> “We have turned off the money spigot and we are finding the fraud.”
O’Neill added that payments will be released “only when states prove they are being spent legitimately.” Adams noted that the Administration for Children and Families provides Minnesota with $185million in child-care funds each year, though HHS did not disclose how much is frozen.
- Every payment must be justified.
- A receipt or photo evidence is required.
- Funds will be sent only after verification.
FBI Investigation and Political Fallout
The announcement follows FBI Director Kash Patel’s claim that the bureau had “surged” resources to Minnesota to investigate fraud claims. The investigation focuses largely on Somali immigrants, a group that has been targeted by President Trump in recent months.
Governor TimWalz wrote:
> “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.”
The viral video, produced by right-wing influencer Nick Shirley, showed child-care centers allegedly receiving state and federal funds while not operating. Shirley’s clip was amplified by Vice President JD Vance, Elon Musk and other right-wing outlets, and singled out the Somali population in his accusations.
| State | Annual Child-Care Funding | Frozen? |
|---|---|---|
| Minnesota | $185million | Yes |
The freeze follows an FBI investigation focused on Somali-community fraud allegations and a viral video that sparked national debate.
Key Takeaways
- HHS has halted all federal child-care payments to Minnesota, cutting $185million a year.
- New rules now require justification and photo evidence before any state receives funds.
- The freeze follows an FBI investigation focused on Somali-community fraud allegations and a viral video that sparked national debate.
As the freeze takes effect, the federal government and Minnesota officials will need to navigate the complex balance between preventing fraud and ensuring families still receive essential child-care support.
Natalie A. Brooks contributed.
