Investigators from the Minnesota Department of Children, Youth, and Families found child care centers in the state operating as expected, following a viral video alleging widespread fraud. The investigation was prompted by a video that gained traction after being reposted by prominent figures, despite limited evidence. The Department is committed to reviewing the claims and ensuring safety while minimizing disruption to communities. Following the video’s release, Health and Human Services froze child care payments to the state, and the state must now provide additional verification to continue to receive federal funds.
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Minnesota Governor Tim Walz has criticized the Trump administration’s decision to pause federal child care funds, citing the politicization of the issue. The freeze followed a viral video alleging widespread fraud in daycare centers run by people of Somali descent. State officials dispute the video’s accuracy, noting prior fraud crackdowns and ongoing investigations, with some suggesting the potential for much larger fraud schemes. The controversy has been amplified by Republicans who have demonized Somali people and immigrant communities.
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The Trump administration announced a freeze on child care funds to Minnesota and mandated an audit of day care centers following reported fraud schemes, citing widespread issues across the country. Deputy Secretary of Health and Human Services Jim O’Neill stated the move was a response to blatant fraud, referencing allegations of significant fraud within day care centers operated by Somali residents in Minneapolis. Governor Tim Walz criticized the move as political, while investigations into state-run programs and the targeting of the Somali diaspora continue. The Administration for Children and Families will require justification and evidence for payments and has launched a fraud-reporting system.
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