Trump administration freezes Minnesota child care funds over fraud

By 
 December 31, 2025

Federal child care payments to Minnesota have been slammed to a halt by the Trump administration amid shocking claims of widespread fraud.

The move, sparked by allegations targeting Somali-run providers, comes as part of a broader push to stamp out misuse of taxpayer dollars, with multiple federal agencies stepping in to investigate and enforce accountability across the state.

For hardworking Minnesota parents, this freeze is a gut punch, as the $185 million in annual funds from the Administration for Children and Families (ACF) is meant to support 19,000 children, including vulnerable toddlers and infants. From a conservative standpoint, it’s infuriating to think that fraud could siphon off resources meant for our youngest, leaving families scrambling for care options while bearing the financial burden of potential service gaps. No one involved should escape scrutiny until every dollar is accounted for.

Crackdown Begins with Funding Freeze

The saga unfolded when Health and Human Services (HHS) Deputy Secretary Jim O’Neill announced the funding freeze on Tuesday through a post on X, pointing to serious concerns about misuse of federal money.

These allegations exploded into the public eye thanks to independent journalist Nick Shirley, whose investigative video racked up over 2.2 million views on YouTube and a staggering 127 million on X by Tuesday night. It’s a wake-up call that taxpayers can’t ignore when fraud claims hit numbers like that.

HHS isn’t just sitting on its hands—three decisive steps have been rolled out to tackle the mess, starting with a “defend-the-spend” system for all ACF payments nationwide, demanding proof like receipts or photos before funds flow to any state.

HHS Demands Answers from Minnesota

Additionally, HHS has zeroed in on individuals named in Shirley’s reporting, calling on Minnesota Governor Tim Walz for a full audit of implicated child care centers, complete with attendance records and inspection details.

They’ve also set up a fraud-reporting hotline and email via childcare.gov, opening the door for parents and providers to blow the whistle. It’s about time the public had a direct line to hold bureaucrats accountable.

On Monday, HHS Assistant Secretary Alex Adams pressed Minnesota’s Department of Children, Youth, and Families Commissioner Tikki Brown on these allegations, but answers were apparently less than reassuring. “She could not tell me with confidence whether those allegations of fraud are isolated or whether there's fraud stretching statewide,” Adams said, as reported by HHS. Talk about a red flag—when state officials can’t even clarify the scope, it’s no wonder trust in oversight is at rock bottom.

Multiple Agencies Join the Fight

Adams didn’t hold back, adding, “Let me be crystal clear. ACF expects every state to uphold the highest standards of oversight, monitoring, and accountability for federal dollars.” That’s the kind of no-nonsense stance conservatives have been begging for, especially when children’s futures are on the line.

The Trump administration’s actions don’t stop at HHS—on Monday, the Small Business Administration (SBA) halted over $5.5 million in funding to Minnesota, citing rampant fraud and oversight failures under Governor Walz’s watch. SBA Administrator Kelly Loeffler had already warned Walz in a letter last week, pulling the plug on disbursements to partner organizations in the state.

On Tuesday, Department of Homeland Security (DHS) agents swept through Minnesota, targeting suspects accused of ripping off taxpayers with searches and enforcement actions. DHS declared on X, “We will root out this rampant fraud plaguing Minnesota.” That’s a promise every law-abiding citizen can cheer, though it’s a shame it took this long to act.

Justice Department Delivers Results

Meanwhile, the Department of Justice has been digging into these claims for months, according to Attorney General Pam Bondi’s statement on Monday via X. Their investigation has already led to charges against 98 individuals, with 85 of Somali descent and over 60 convictions secured. It’s a stark reminder that accountability must be blind to background—fraud is fraud, period.

This multi-agency crackdown sends a clear message: the days of federal funds vanishing into thin air are over, at least under this administration’s watch. For too long, progressive oversight failures have let taxpayer money slip through the cracks, and now Minnesota families are caught in the crossfire.

While some might cry foul over the timing or focus of these investigations, the bottom line for conservatives is simple—every stolen dollar is a betrayal of trust, especially when it’s meant for our kids. Let’s hope this shake-up forces real reform, not just headlines, because Minnesota’s children deserve better than a system riddled with holes.

" A free people [claim] their rights, as derived from the laws of nature."
Thomas Jefferson