Minnesota investigators say child care centers accused of fraud in a viral online video are operating normally, even as Gov. Tim Walz ended his reelection bid amid mounting scrutiny.
State officials said compliance checks at all centers named in the video found children present and programs functioning as expected, though several investigations remain open.
The controversy intensified after the Trump administration froze federal child care funding to Minnesota and demanded detailed records by Friday.
Minnesota child care centers facing widespread fraud claims were operating as expected when visited by investigators, a state agency said. https://t.co/vtmhObWnXi
— CNN (@CNN) January 2, 2026
Federal officials say funds will remain withheld until the state verifies proper use of taxpayer dollars. Minnesota typically receives about $185 million annually for child care assistance.
Walz said he stepped aside to focus on governing and combating fraud rather than campaigning. Republicans have blamed Democratic leadership for weak oversight.
Meanwhile, DHS, the FBI, and House Oversight Committee investigators are expanding probes into possible misuse of public funds. Thousands of families and providers now face uncertainty as the funding deadline approaches.
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TIPP Staff
