President Donald Trump’s administration announced on Tuesday that it is freezing child care funds to Minnesota and demanding an audit of certain daycare centers following a series of allegations surrounding fraud in government programs.
Deputy Secretary of Health and Human Services Jim O’Neill stated on social media that this action is driven by ‘blatant fraud that appears to be rampant in Minnesota and across the country.’
Minnesota Governor Tim Walz has responded sharply, asserting that while fraud is an issue, this federal move is part of Trump’s long-term strategy to undermine programs that benefit ordinary Minnesotans.
‘He’s politicizing the issue to defund programs that help Minnesotans,’ Walz tweeted.
O’Neill referred to a recent claim by a right-wing influencer that daycare centers, predominantly run by Somali residents in Minneapolis, might be guilty of committing up to $100 million in fraud. O’Neill insisted on an audit of these centers, requiring documentation including attendance records and inspections.
‘We have turned off the money spigot and we are finding the fraud,’ O’Neill proclaimed.
This announcement follows a visit by U.S. Homeland Security officials to Minneapolis where they conducted inquiries into suspected fraud related to federal financial assistance programs.
The state has been grappling with a series of fraud investigations, including a $300 million pandemic food fraud scheme involving the non-profit Feeding Our Future, resulting in multiple convictions.
According to recent allegations, over half of the $18 billion in federal funds allocated for several assistance programs in Minnesota since 2018 may have been misappropriated. Many of the accused belong to the Somali American community, which has brought additional scrutiny and criticism.
In a continued effort to combat fraud, O'Neill also announced that future funding will necessitate explicit justifications, receipts, or photographic evidence prior to disbursement.
O'Neill noted that Minnesota receives $185 million annually in child care funds, crucial for supporting approximately 19,000 children, emphasizing that theft through fraud directly robs these children of vital assistance.
Walz mentioned an audit expected by late January, which he anticipates will provide clarity on the statewide extent of the alleged fraud. He confirmed that his administration remains committed to preventing further fraud occurrences.
Notably, Minnesota’s significant Somali American population, represented by figures such as Democratic U.S. Rep. Ilhan Omar, has called for a balanced response, urging against the demonization of an entire community due to the actions of a few.
