US EditionMinnesota Investigators Say Child Care Centers Accused of Fraud in Viral Video Are Operating Normally. Here’s What Comes Next
Federal child care funds totaling $12.3 billion require states to prove legitimate spending after Minnesota fraud allegations prompted payment freezes, HHS said.
- On Tuesday, President Donald Trump's administration announced states must provide written justification, receipts, or photos to receive federal child‑care dollars after allegations of fraud in Minnesota led HHS to freeze payments.
- A Craigslist ad in Minneapolis showed a removed listing seeking `20 child actors` for daycare, offering `$1500 per day`, while Nick Shirley's viral posts helped prompt federal scrutiny.
- CCDF funding stood at roughly $12.3 billion in fiscal year 2025, comprising $8.75 billion from CCDBG and $3.55 billion from CCES, providing federal funds to help low‑income families obtain child care.
- Advocates warned the action may disrupt payments, delaying funds for parents and children who rely on CCDF-funded care, while federal action intensified political debate nationwide after viral claims prompted the shift.
- HHS Deputy Secretary Jim O'Neill posted that he had `activated our defend the spend system` for all ACF payments and clarified shortly that `funds will be released only when states prove they are being spent legitimately`, while HHS acknowledged limited specifics on review procedures.
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Uncertainty lingers for federal child care dollars in SD
SIOUX FALLS, S.D. (KELO) -- Over $8 million in direct federal child care reimbursements for South Dakota could be paused in lieu of alleged daycare fraud investigations in Minnesota. A Monday news release from the U.S. Health and Human Services Administration said it plans to reverse a policy that currently bases federal payments to providers [...]
After Minnesota fraud allegations, HHS orders states to justify child care spending - Garden City Telegram
BY SHAUNEEN MIRANDAStates Newsroom WASHINGTON — States must now provide “justification” that federal child care funds they receive are spent on “legitimate” providers in order… Login to continue reading Login Sign up for complimentary access Sign Up Now Close
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As Minnesota reels from revelations of massive Somali-led fraud tied to taxpayer-funded programs, a new development has ignited fresh outrage after a Craigslist posting emerged allegedly advertising for “child actors” to help a Minneapolis "daycare" appear operational during state inspections. The post Ad Emerges for ‘Child Actors’ to Fill Minnesota ‘Daycare’ amid Somali Fraud Scandal appeared first on Slay News.
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