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Trump administration tightens US childcare reporting requirements, no funds frozen in Minnesota

The Department of Health and Human Services requires stricter documentation for childcare funding nationwide after audits showed 11% of payments in Minnesota had attendance issues.

  • The Trump administration froze federal child care payments to all 50 states and halted all payments to Minnesota amid fraud allegations, Jim O'Neill said on Dec. 31.
  • A viral social media video by Nick Shirley alleged fraud at Somali-run child care centers in Minnesota, but WCCO and other reporters found 10 licensed centers with children present and noted vandalism at one site Tuesday.
  • HHS activated new verification systems and a hotline, requiring receipts or photo evidence before states can draw down CCDF matching funds, Jim O'Neill said Tuesday.
  • Federal CCDF subsidies support 1.4 million children, with over half under five, and providers warn the freeze could force closures, staff cuts, or higher tuition.
  • State data show prior referrals led to repayments and closures, with Ohio officials urging more unannounced inspections among nearly 5,200 publicly funded child care providers, while a federal prosecutor alleges billions stolen in Minnesota.
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Minnesota families and child care providers scramble as federal funds hang in balance

In the days since the Trump administration announced it would freeze federal child care payments to Minnesota amid an alleged fraud investigation, fear and confusion have spread almost as fast as the viral video that launched the scandal.

·Atlanta, United States
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Reuters broke the news in United Kingdom on Wednesday, December 31, 2025.
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