HHS freezes all federal child care payments to Minnesota. The agency typically sends about $185 million a year in child care funding to the state. New rules now apply to all ACF payments nationwide.

by

Deputy Secretary Jim O’Neill

@HHS_Jim
We have frozen all child care payments to the state of Minnesota.

You have probably read the serious allegations that the state of Minnesota has funneled millions of taxpayer dollars to fraudulent daycares across Minnesota over the past decade.

Today we have taken three actions against the blatant fraud that appears to be rampant in Minnesota and across the country:

1. I have activated our defend the spend system for all ACF payments. Starting today, all ACF payments across America will require a justification and a receipt or photo evidence before we send money to a state.

2. Alex Adams and I have identified the individuals in
@nickshirleyy
‘s excellent work. I have demanded from
@GovTimWalz
a comprehensive audit of these centers. This includes attendance records, licenses, complaints, investigations, and inspections.

3. We have launched a dedicated fraud-reporting hotline and email address at https://childcare.gov Whether you are a parent, provider, or member of the general public, we want to hear from you.

We have turned off the money spigot and we are finding the fraud.
@ACFHHS

@HHSGov

HHS freezes all child care payments to Minnesota after viral fraud allegations

The Department of Health and Human Services said Tuesday it has frozen federal child care funding for the state of Minnesota, citing viral fraud allegations.

Deputy HHS Secretary Jim O’Neill announced the move in a post on X, writing that “blatant fraud … appears to be rampant in Minnesota and across the country.”

“We have turned off the money spigot and we are finding the fraud,” he wrote.

O’Neill cited a video in which conservative YouTuber Nick Shirley alleged nearly a dozen Minnesota day care centers that receive state funds aren’t actually providing services. O’Neill said the agency has identified the centers mentioned in a video and demanded that the state carry out a “comprehensive audit” of them, including “attendance records, licenses, complaints, investigations and inspections.”