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Trump administration says it’s freezing child care funds to Minnesota after series of fraud schemes

The freeze follows allegations that over half of $18 billion in child care funds since 2018 may have been stolen, with 57 convictions linked to a $300 million fraud scheme.

  • On Tuesday, President Donald Trump’s administration announced it is freezing child care funds to Minnesota, with Acting CDC director Jim O'Neill saying `We have turned off the money spigot`.
  • Following investigations tied to a $300 million Feeding Our Future scheme, a federal prosecutor alleged that more than half of roughly $100 million may have been stolen, prompting the federal step.
  • Federal officials said payments through the Administration for Children and Families will require justification and a receipt or photo evidence, launching a fraud hotline and demanding audits from Minnesota governor Tim Walz.
  • Minnesota Gov. Tim Walz said fraud will not be tolerated and his administration will work with federal partners, adding an audit due by late January should clarify the extent.
  • Tensions rose after allegations tied to Minneapolis day care centers, with most defendants Somali Americans, and Ilhan Omar urged not to blame the Somali American community in Minnesota.
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Trump administration says it's freezing child care funds to Minnesota after series of fraud schemes

The Trump administration has announced that it is freezing child care funds to Minnesota after a series of fraud schemes in recent years.

·United States
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MPR News broke the news in Saint Paul, United States on Tuesday, December 30, 2025.
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