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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 half of $18 billion in Minnesota child care funds since 2018 may have been stolen, with 57 convictions in a $300 million fraud scheme.

  • Child care payments to Minnesota have been frozen by the Trump administration, according to HHS Deputy Secretary Jim O'Neill.
  • Three actions have been taken against fraud in Minnesota and across the country.
  • Investigations estimate that the cost of fraud to taxpayers could be between $250 million and $1 billion.
  • A federal prosecutor claimed that over half of the $18 billion in federal funds for Minnesota's programs may have been stolen since 2018.
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Crooks and Liars broke the news in United States on Tuesday, December 30, 2025.
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