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The Trump administration has temporarily halted child care funding to all states following allegations of fraud in Minnesota daycare centers. The Department of Health and Human Services (HHS) announced the freeze after a viral video from conservative influencer Nick Shirley claimed widespread fraud in daycare facilities operated by Somali communities in Minneapolis. HHS Deputy Secretary Jim O'Neill stated that funds will only be released once states prove they are being spent legitimately.
According to ABC News, the HHS is requiring states to submit administrative data, including attendance records and inspection reports, to verify the legitimacy of fund usage. Minnesota officials, including Governor Tim Walz, have disputed the allegations and criticized the federal response as politically motivated. Walz emphasized that his administration has been actively addressing fraud issues.
The freeze affects the Child Care and Development Fund, which supports low-income families. This move could impact approximately 1.4 million children nationwide. Minnesota Attorney General Keith Ellison is exploring legal options to prevent disruption of critical child care services.
The FBI has increased resources in Minnesota to investigate the fraud claims, which have targeted Somali immigrants. The Trump administration has emphasized the importance of verifying fund usage before releasing payments, with Vice President JD Vance praising the decision to ensure taxpayer money is spent appropriately.