Federal Freeze on Child Care Funds in Minnesota Amid Fraud Investigations
On Tuesday, the Trump administration announced a freeze on child care funds designated for Minnesota, along with a demand for an audit concerning suspected fraud within state government programs.
Deputy Secretary of Health and Human Services Jim O’Neill stated the action stems from what he termed "blatant fraud" reported in the state and nationwide. Minnesota Governor Tim Walz countered that while fraud is a concern, the decision to freeze funds appears politically motivated, suggesting it is aimed at defunding beneficial programs for Minnesotans.
The announcement follows a claim made by a social media influencer alleging that day care centers run by Somali residents in Minneapolis are involved in up to $100 million in fraudulent activities. O’Neill has requested that Governor Walz provide a comprehensive audit, including various records related to these centers.
This development coincides with a recent investigation by U.S. Homeland Security officials in Minneapolis, focusing on unidentified businesses. The state has faced ongoing scrutiny over fraud, including a $300 million scheme related to the pandemic food program run by the nonprofit Feeding Our Future, resulting in several convictions.
Federal prosecutors allege that significant portions of the $18 billion in federal funds for various programs in Minnesota since 2018 may have been misappropriated, with many defendants being Somali Americans.
O’Neill also stated that future payments for child care assistance will require justification, along with photographic evidence, before disbursement. The Administration for Children and Families provides approximately $185 million annually to Minnesota, which supports services for about 19,000 children.
Walz has indicated that an upcoming audit, expected by late January, will clarify the scope of the alleged fraud. He has defended his administration’s efforts to combat fraudulent activities. U.S. Representative Ilhan Omar has publicly urged against stigmatizing the broader Somali community due to the actions of a few individuals.
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Interesting article, definitely worth a read.