The Trump administration has frozen federal childcare payments to Minnesota and launched new fraud investigations tied to daycare providers, citing concerns over misuse of taxpayer funds.
The move follows claims by a conservative YouTuber that some daycare centers linked to Somali Americans in Minneapolis were involved in large scale fraud.
We have frozen all child care payments to the state of Minnesota.
— Deputy Secretary Jim O'Neill (@HHS_Jim) December 30, 2025
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… pic.twitter.com/VYbyf3WGop
The Department of Health and Human Services said it acted to address serious allegations of abuse in federal programs.
Roughly $185 million in federal funds that support childcare for low income families across Minnesota have been halted.
At the same time, the Department of Homeland Security announced audits of immigration cases involving Somali Americans, warning that citizenship obtained through fraud could be revoked.
A recent video by conservative YouTuber Nick Shirley alleged nearly a dozen day care centers in Minnesota that are receiving public funds are not actually providing any service. After the video went viral, DHS Secretary Kristi Noem announced a "massive investigation on childcare… pic.twitter.com/vvQv8DEbaV
— CBS News (@CBSNews) December 30, 2025
The FBI has also deployed investigators to Minnesota to examine potential large scale schemes.
Minnesota officials called the action politically motivated, while some media reports noted that state inspections have found regulatory violations but no confirmed evidence of widespread fraud so far. Federal investigations remain ongoing.
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TIPP Staff
