The Trump administration announced on Tuesday the suspension of child care funds to Minnesota, requesting audits of specific daycare centers following reports of fraud. Deputy Secretary of Health and Human Services, Jim O’Neill, stated via the social platform X that the action was necessary due to prevalent fraud seen in Minnesota as well as across the nation.
Governor Tim Walz responded on the same platform, arguing that while fraud is a real issue, the decision was politically charged and part of Trump’s long game to defund crucial state programs that aid residents.
O’Neill referenced claims made by a right-wing influencer, who alleged that daycare facilities run by Somali residents in Minneapolis were involved in up to $100 million worth of deceptive practices. Consequently, he requested a comprehensive audit from Walz that would cover attendance records, licenses, complaints, and inspection reports.
“We have turned off the money spigot and we are finding the fraud,” O’Neill declared.
The announcement follows a recent investigation by Homeland Security in Minneapolis, wherein officials scrutinized various businesses for potential fraudulent activities.
Prior investigations have spotlighted cases such as a $300 million food fraud scheme associated with the nonprofit, Feeding Our Future, which has seen 57 convictions in connection to COVID-19 relief scams. Federal officials indicated that potentially half of the federal funding allocated for Minnesota’s service programs, amounting to approximately $18 billion, may have been misappropriated.
O’Neill elaborated on changes in funding protocols, highlighting that future payments will necessitate substantiation through receipts or photo evidence prior to the funds being disbursed. To assist the public with reporting fraud, new channels have been established by the Administration for Children and Families, which provides about $185 million in annual child care funding to Minnesota, aimed at supporting 19,000 children, including toddlers and infants.
In light of the issues raised, Governor Walz indicated that an audit due late January should reveal the full extent of fraud, maintaining that his administration is diligently addressing these concerns while promoting protections against further fraudulent activities.
Notably, Minnesota hosts a significant Somali American population, and accompanying narratives have sparked discussion regarding the characterization of entire communities based on the actions of a few individuals. Democratic U.S. Representative Ilhan Omar has cautioned against assigning blame to the larger Somali community due to the actions of a minority.
