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

Federal officials froze $185 million in annual child care funds to Minnesota amid widespread fraud investigations including 57 convictions tied to a $300 million pandemic-era scam.

  • 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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The Trump administration announced the freezing of federal funds for day care centers in Minnesota and demanded thorough audits of the Democratic Tim Walz government after detecting fraud schemes linked to federal-funded programs.Read more]]>

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Crooks and Liars broke the news in United States on Tuesday, December 30, 2025.
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