HHS Freezes Child Care Payments to MN Amid Fraud Concerns

(Learfield News/Washington, DC) — The U.S. Department of Health and Human Services is halting all child care payments to Minnesota following reports of widespread fraud.

Deputy Secretary Jim O’Neill announced that payments are frozen effective immediately, citing what he called “blatant fraud” in Minnesota and across the country.

O’Neill said all future ACF payments nationwide will require justification and proof, such as receipts or photo evidence, before funds are released.

He also called on Governor Tim Walz to order an audit of Minnesota child care centers.

The move follows a viral video allegedly showing abandoned day care facilities still receiving taxpayer subsidies.

Walz says his administration has already taken steps to address the issue and supports criminal prosecutions.