Chicago – December 30, 2025
The Trump administration announced it is freezing federal child care payments to Minnesota amid allegations of widespread fraud in state-run programs.
Deputy Health and Human Services Secretary Jim O’Neill stated on X that the move targets “blatant fraud” after a viral video exposed non-operational daycares receiving millions in taxpayer funds. This follows a $300 million scheme by the Feeding Our Future nonprofit, leading to 57 convictions in the nation’s largest COVID-19 fraud case exploiting child meal programs. Federal prosecutors estimate over half of $18 billion in funds to 14 Minnesota programs since 2018 may have been misappropriated, with many defendants Somali Americans.
The freeze impacts $185 million annually, affecting 30,000 low-income families reliant on subsidies. Governor Tim Walz called it politically motivated, vowing continued anti-fraud efforts with federal partners. HHS demands audits and evidence before resuming funds, launching a national fraud hotline.
