Trump administration tightens CCDF rules and freezes child care funds amid fraud claims
The Trump administration’s HHS, led publicly by Deputy Secretary Jim O’Neill, has frozen Child Care and Development Fund (CCDF) disbursements to Minnesota — and instituted new nationwide verification (initially described broadly but later limited to CCDF) requiring justification and receipts or photo evidence and demanding audits and records for specific Minneapolis centers after a viral video and ongoing fraud investigations tied to prior cases like Feeding Our Future. At the same time the administration announced it will rescind Biden-era CCDF payment rules in favor of attendance-based billing, stop advance payments, prioritize vouchers, and has targeted roughly $10 billion in child‑care and TANF funds across five states, prompting legal and political pushback and concern about immediate impacts on families and providers.
📌 Key Facts
- HHS Deputy Secretary Jim O’Neill announced an immediate freeze of all Child Care and Development Fund (CCDF) payments to Minnesota after citing a viral video by independent journalist Nick Shirley alleging fraud at Somali‑run Minneapolis daycares; HHS demanded audits and records for specific centers and launched a fraud‑reporting hotline.
- HHS imposed new nationwide verification requirements for CCDF funding—states must submit additional administrative data (attendance, licensing, receipts/photos and related records) before payments resume—after an initial broader claim that all Administration for Children and Families payments would require receipts was narrowed to CCDF only.
- The enforcement response expanded beyond Minnesota: the Office of Management and Budget confirmed the administration froze about $10 billion in child‑care and cash‑assistance funds concentrated in five Democratic‑led states (Minnesota, California, Colorado, Illinois and New York), with more than $7 billion of that total from TANF, and HHS rolled out a nationwide 'defend the spend' data‑submission system.
- Nick Shirley’s 42–43 minute unverified video (viewed widely on social media, reported at over 140 million views) catalyzed rapid federal attention—Shirley has monetized the controversy and says he has received death threats—and his reporting drew public praise from top Trump officials, helping trigger multi‑agency probes.
- Federal enforcement in Minnesota has become multi‑agency: DHS/ICE/HSI worksite and site‑visit operations (including I‑9 audits and a public Operation Twin Shield campaign), DOJ criminal investigations and warrants, and DHS reviews of immigration/naturalization cases from multiple 'countries of concern' (including Somalia) have all been tied to the fraud response.
- There is substantial prosecutorial background but varying estimates of the scale: Feeding Our Future and related investigations have produced dozens of charges and convictions (reporting cites roughly 57–62 convictions and 92 charged), while federal prosecutors and administration officials have cited suspected losses ranging from about $1 billion up to claims of $9 billion or as much as $18 billion across multiple Minnesota programs since 2018.
- State and local response has been mixed and consequential: Minnesota officials say they first learned of the freeze via social media, were given tight deadlines (providers asked to submit records by Jan. 9), and report that spot checks found most centers active and licensed though some are under investigation; providers and families warn funding interruptions could force closures and job losses, and at least one targeted center has closed and another was vandalized.
- The actions have become politically charged: the White House and Trump administration officials have framed the moves as part of a broader fraud and immigration enforcement push and publicly tied allegations to Minnesota’s Somali community, while Minnesota leaders (Gov. Tim Walz, AG Keith Ellison and others) denounce politicization, have threatened legal action, and Congress has scheduled oversight hearings.
📊 Relevant Data
The Somali community in Minnesota began forming in the early 1990s as refugees fled the civil war in Somalia, with initial resettlement facilitated by voluntary agencies such as Lutheran Social Services and Catholic Charities under the U.S. Refugee Admissions Program, and secondary migration drawn by family networks, job opportunities, and Minnesota's generous welfare system.
How Minnesota became a hub for Somali immigrants in the U.S. — NPR
In Minnesota, 81% of Somali households receive some form of welfare, compared to 23% of native-born households, with 73% on Medicaid versus 21% of natives, and 54% on food stamps versus 7% of natives, based on 2019-2023 American Community Survey data.
Somali Immigrants in Minnesota — Center for Immigration Studies
The federal freeze on Child Care and Development Fund (CCDF) payments could affect over 20,000 children in more than 4,000 child care programs in Minnesota alone, with providers warning of potential closures and job losses.
Minnesota Democrats, child care providers push back on federal child care freeze — InForum
Among Somali Minnesotans, 36.4% live below the poverty line, with an additional 20.6% between 100-149% of the poverty level, based on recent data for the population where poverty status is determined.
Somali population - Cultural communities — Minnesota Compass
The U.S. Refugee Act of 1980 established the framework for Somali refugee admissions, with organizations like the International Institute of Minnesota and state refugee programs facilitating resettlement, contributing to Minnesota becoming home to over 80,000 Somalis by 2025.
Somali and Somali American Experiences in Minnesota — MNopedia
📊 Analysis & Commentary (2)
"A City Journal opinion argues that the Minnesota daycare/Feeding Our Future revelations reveal an almost 'Uber‑style' marketplace for welfare fraud, calling for aggressive enforcement and systemic fixes while warning about blunt federal responses and potential collateral damage."
"The City Journal piece argues that the drive for universal childcare — as promoted in some progressive circles — risks damaging New York children and families because centrally administered, large funding streams (illustrated by recent HHS CCDF freezes and tightened rules) create single points of failure, invite politicized enforcement, and can disrupt providers and access; the author advocates targeted, locally sensitive reforms and safeguards rather than a universal federal program."
🔬 Explanations (6)
Deeper context and explanatory frameworks for understanding this story
Phenomenon: Widespread fraud in Minnesota's Child Care Assistance Program
Explanation: Structural deficiencies in program oversight, including inadequate verification of child attendance and eligibility, allowing organized groups to exploit the system by billing for non-existent services
Evidence: Audits reveal flaws in monitoring attendance and payments, with historical estimates of significant annual fraud, and recent federal audits confirming ongoing oversight issues enabling exploitation
Alternative view: Cultural factors within specific immigrant communities facilitating organized fraud, though evidence is limited and contested
💡 Challenges the implicit narrative of isolated incidents by highlighting systemic failures in state administration, shifting focus from individual wrongdoing to institutional weaknesses
Phenomenon: Trump administration freezing federal child care funds to Minnesota and other Democrat-led states
Explanation: Executive branch leveraging control over federal grants to advance political agendas, using fraud allegations as a pretext to withhold funds from states with opposing political leadership
Evidence: Legal analysis shows a pattern of the Trump administration imposing conditions or freezes on federal funding to punish or influence states and institutions, bypassing congressional intent and using discretionary authority
Alternative view: Genuine policy response to prevent waste and fraud by requiring stricter verification, as stated by administration officials
💡 Complicates the coverage's portrayal of the freeze as a direct fraud crackdown by introducing evidence of political motivations, suggesting it's part of a broader strategy to target Democrat-led states
Phenomenon: Reignition of public furor over Minnesota fraud via social media videos
Explanation: Technological amplification through social media platforms, where algorithms promote sensational content alleging fraud, influencing public opinion and prompting federal action
Evidence: Research on social media's role in amplifying unverified claims shows how viral videos can drive policy responses by creating perceived crises, with examples from recent political events
💡 Adds depth to the story's description of the video's impact by explaining how tech platforms create feedback loops that escalate minor allegations into national issues, beyond just the content itself
Phenomenon: Institutional trust collapse
Explanation: According to a 2025 Pew Research Center study on changes in trust in information from news organizations, the decline in trust in traditional media is driven by increasing political polarization, the proliferation of online news sources, and perceptions of bias, leading Americans to turn to alternative and social media platforms for information.
Evidence: The study tracks trust levels over time, showing a drop from 76% trusting national news organizations 'a lot' or 'some' in 2016 to lower levels in 2025, correlated with partisan divides and the rise of digital alternatives.
Alternative view: A Substack analysis by journalist Eric Deggans attributes the decline partly to specific attacks on mainstream press by political figures and the media's own failures in transparency and audience engagement.
💡 This explanation complicates the typical coverage by highlighting how unverified influencer reports gain traction not just due to sensationalism, but as a symptom of deeper systemic distrust in established institutions, potentially justifying rapid policy responses outside traditional verification processes.
Phenomenon: Rise of populism and political realignment
Explanation: A 2025 article in West European Politics by Dani Rodrik argues that the rise of populism in the US is fueled by economic stagnation, decline of the working class, and backlash against globalization, leading to political realignment where leaders exploit anti-elite sentiments and immigration fears to mobilize support.
Evidence: The article analyzes economic data showing stagnant wages and job losses in manufacturing sectors, correlating with increased support for populist candidates in affected regions, supported by voting patterns from 2016 to 2024 elections.
Alternative view: A 2024 article in The Conversation by Christopher Federico emphasizes cultural factors like immigration, race, and religion as central drivers, alongside economic issues.
💡 It challenges the implicit narrative of fraud allegations as isolated incidents by framing the White House's swift actions as part of a populist strategy to target perceived elite corruption and immigrant communities, amplifying political tensions beyond factual verification.
Phenomenon: Ethnic and racial demographic transitions
Explanation: According to a 2025 Brookings Institution analysis by William H. Frey, ethnic and racial demographic shifts in the US are primarily caused by immigration from diverse regions, declining birth rates among white populations, and higher fertility among Hispanic and Asian American groups, leading to a more diverse population.
Evidence: The analysis uses recent Census data showing that post-pandemic population growth was driven by Hispanic, Asian American, and multiracial groups, with projections indicating non-white majorities in many areas by 2045.
Alternative view: A 2025 RSF: The Russell Sage Foundation Journal study highlights changes in Census data processing that artificially inflated multiracial identification, suggesting methodological factors also contribute to perceived shifts.
💡 This connects the story's focus on Somali community fraud to broader demographic changes, complicating narratives of targeted fraud by showing how immigration-driven diversity intersects with political scrutiny and policy crackdowns.
📰 Source Timeline (24)
Follow how coverage of this story developed over time
- Identifies independent journalist Nick Shirley and his 43‑minute viral video as the catalyst that rapidly drew top Trump administration attention to alleged Minnesota daycare fraud.
- States that Shirley’s video has been viewed over 140 million times on social media.
- Frames the timeline: the administration first froze all child‑care payments to Minnesota, then extended penalties to all 50 states by requiring new verification, and later announced a $10 billion freeze on child care, social-services, and cash‑support funds focused on five Democratic‑led states.
- Connects the daycare‑fraud crackdown and funding freezes to a broader Trump immigration and enforcement campaign in Minnesota, including the deployment of 2,000 federal agents and the politically explosive ICE shooting of a woman driver in Minneapolis.
- Reports that Minnesota Gov. Tim Walz cited the mounting fraud investigations and attention as a factor in ending his bid for a third term.
- Quality Learning Center in Minneapolis, which received $1.9 million in CCAP funds in FY2025 and was targeted in Nick Shirley’s fraud video, is now listed as closed in state licensing records.
- Its last licensing review in June cited operational violations but no evidence of fraud, suggesting closure reasons remain unclear.
- State inspection data show that nearly all daycares highlighted in the viral video were active, recently inspected, and had children present when spot‑checked by regulators.
- HHS announced it will rescind Biden-era CCDF rules that pushed states to pay providers based on enrollment, pay in advance, and favor contracted slots over vouchers.
- Under the new Trump administration policy, HHS says it will restore attendance-based billing, stop requiring advance payment to providers, and reprioritize voucher-based assistance.
- HHS confirms that the CCDF funding freeze took effect "immediately" and says funds will be unfrozen only after each state submits unspecified "administrative data."
- Advocates and state partners report that HHS has not clearly told states what specific data are required or when funding will resume, raising fears that even a month without payments could force provider closures.
- The article reiterates CCDF scale, citing HHS data that about 1.4 million children and 857,700 families per month received assistance through the program in 2019.
- OMB confirms to Axios that the Trump administration is freezing $10 billion in child care and TANF funds affecting five blue states: California, Colorado, Illinois, Minnesota and New York.
- More than $7 billion of the frozen total is TANF funding, with the rest from the Child Care Development Fund that subsidizes care for low-income families.
- The five states are being singled out because HHS says they are where its 'highest suspicion' lies, and each will have to provide additional documentation such as attendance records, inspection reports and parent complaints.
- HHS spokesman Andrew Nixon describes a new nationwide 'defend the spend' system under which all 50 states must submit more administrative data before accessing child care and TANF funds, with even stricter requirements for certain Minnesota centers.
- The Axios piece reports that child care providers in other states, including Texas and West Virginia, have been warned of potential delays, signaling that freezes and slowdowns may spread beyond the initial five states.
- Illinois’ Department of Human Services says it has not yet been formally notified and denounces the move as a politically motivated Trump administration action that confuses families.
- Minnesota’s Department of Children, Youth and Families (DCYF) emailed providers Friday saying information on funding recipients must be sent to the federal government by Jan. 9 and that the state learned of the funding freeze from social media, with formal notice arriving only late Tuesday.
- DCYF said the HHS freeze means all states must now submit 'additional verification' before they receive more federal child care funding, indicating a nationwide impact beyond Minnesota.
- DCYF reported that Minnesota’s Office of Inspector General conducted on‑site compliance checks at nine childcare centers named in Nick Shirley’s viral video and found them operating 'as expected,' with children present at all but one site that was not yet open.
- The department disclosed that four of the nine centers are under ongoing investigations and that it has 55 open investigations involving providers receiving Child Care Assistance Program funds.
- DCYF Commissioner Tikki Brown publicly acknowledged concerns about the video, said prior inspections had not uncovered fraud at the cited centers, and stated regulators are now conducting unannounced visits in response.
- Minnesota’s Department of Children, Youth, and Families told providers it has until Jan. 9, 2026 to provide information on providers and parents receiving federal child care funds to the Trump administration, or risk losing federal funding.
- The state agency says it first learned of the CCDF funding freeze via social media and did not receive formal federal communication until late Tuesday night, after HHS Deputy Secretary Jim O’Neill’s post on X.
- Minnesota inspectors conducted spot checks of nine childcare centers named in a viral influencer video and reported that they were 'operating as expected' with no operational issues; one center was not yet open and four are under ongoing investigation.
- An HHS spokesperson says a new child care fraud hotline has already received more than 200 tips.
- HHS Assistant Secretary Alex Adams told Fox News his agency sent Minnesota a letter last month seeking information on child care and other welfare programs by Dec. 26 but received no response.
- The U.S. House Committee on Oversight and Government Reform has scheduled a hearing for Wednesday to discuss alleged fraudulent use of federal child care funds in Minnesota.
- Describes DHS/ICE’s new on‑the‑ground tactics—site visits, I‑9 audits, and E‑Verify questioning—as part of the same Minnesota fraud response that triggered HHS’s funding freeze.
- Reports that Operation Twin Shield, begun in September, now includes a public campaign by DHS featuring videos of HSI officers conducting inspections.
- Confirms federal criminal enforcement progress, with six people charged and one guilty plea from the local U.S. Attorney’s Office.
- Independent journalist Nick Shirley says he has received explicit death threats and harassment, including calls to his family, after his Minnesota daycare fraud video went viral.
- Threats reportedly included warnings that he would be 'Kirked,' referencing the September assassination of conservative activist Charlie Kirk.
- Shirley states that one daycare he highlighted allegedly received roughly $4 million in taxpayer funding despite appearing largely empty.
- Minnesota Department of Children, Youth and Families Commissioner Tikki Brown publicly reiterated that past inspections found no evidence of fraud at the centers, while acknowledging concerns raised by the video and questioning some of Shirley’s methods.
- The article directly links the viral video to HHS’s Dec. 30 decision to halt child care payments to Minnesota, framing the stoppage as a response to the video’s allegations.
- The article provides on-the-ground reaction from Minnesota day-care providers and parents who say they could go out of business in weeks and may have to quit jobs or studies if the HHS freeze continues.
- HHS told the New York Times it is freezing funds for all Minnesota child-care centers that it was supporting under the program, clarifying the breadth of the freeze at the center level.
- Deputy Secretary Jim O’Neill’s announcement explicitly cited a viral video by conservative content creator Nick Shirley alleging fraud at Somali-run centers, and the article notes the video 'does not conclusively prove malfeasance' even as it drew praise from top Trump officials.
- Named example: St. Paul day-care operator Maria Snider warns that loss of subsidies could push paycheck-to-paycheck families into homelessness.
- Fox describes Nick Shirley’s original 42‑minute video in more detail as documenting several Minnesota daycare centers that appeared largely inactive while receiving millions in government funding.
- CBS News Minneapolis reporter Jonah Kaplan released a video segment saying state inspectors had repeatedly visited nearly a dozen centers highlighted by Shirley, found safety and cleanliness violations but "no evidence of fraud," and noted that all but two had active licenses.
- Kaplan’s report said CBS visited and called several of the centers on Monday but "received no responses."
- Minnesota Department of Children, Youth and Families Commissioner Tikki Brown publicly stated that past inspections of the centers had not uncovered evidence of fraud, while saying the state takes the concerns seriously and has questions about Shirley’s methods.
- The article reiterates that, in response to the viral video, HHS announced Tuesday that it would halt child‑care payments to Minnesota.
- President Trump, in New Year’s Eve remarks at Mar-a-Lago, publicly characterizes alleged Minnesota social-services fraud as $18 billion in 'stolen' taxpayer funds and says Minnesota is part of a broader pattern in states including California, Illinois and New York.
- Trump explicitly ties the allegations to the Somali community in Minnesota, referencing seeing Rep. Tom Emmer discuss 'the Somalia population' on television.
- White House press secretary Karoline Leavitt, in a Fox & Friends interview, warns that 'people will be in handcuffs' and says 'President Trump is not going to let Governor Walz off the hook,' framing Walz personally as accountable.
- The article reiterates that federal prosecutors have charged dozens of people and that total losses in Minnesota are estimated at up to $1 billion, while juxtaposing that figure with Trump’s far higher $18 billion claim.
- Leavitt states the Trump administration has increased federal investigative resources in Minnesota across multiple agencies, in line with HHS’s recent move to freeze all child-care payments to the state.
- CBS piece foregrounds on-the-ground impact: Minnesota parents now directly fear their specific daycare could close or lose funding because of the federal freeze.
- Story highlights uncertainty among families and providers while federal fraud probes continue, emphasizing immediate anxiety rather than just the policy mechanics.
- Reporter Jonah Kaplan is identified as tracking the fallout, indicating sustained local/national TV coverage of the freeze’s practical effects.
- Federal prosecutors now estimate Minnesota social‑services fraud could exceed $9 billion across more than a dozen programs, not just childcare.
- HHS has implemented sweeping nationwide changes for Medicaid‑supported daycares, requiring a justification and a receipt or photo evidence before sending money to any state.
- Federal prosecutors have charged 92 people and secured 62 convictions so far in Minnesota fraud cases that began with the Feeding Our Future investigation.
- FBI Director Kash Patel is quoted calling the Feeding Our Future case 'just the tip of a very large iceberg.'
- CBS reports that, contrary to the viral narrative, childcare fraud is 'vaguely' a priority for prosecutors and that their main focus is on other programs, including nutrition, housing and behavioral health.
- Confirms that HHS is freezing Child Care and Development Fund (CCDF) child-care disbursements to all 50 states until they submit additional verification and administrative data.
- Clarifies that, contrary to an earlier broad statement by Deputy Secretary Jim O'Neill that all Administration for Children and Families payments would require receipts or photo evidence, HHS now says the extra verification applies only to CCDF payments.
- Details that Minnesota, before resuming CCDF funding, must provide enhanced documentation for centers suspected of fraud, including attendance and licensing records, past enforcement actions, and inspection reports.
- Reports that the Trump administration is explicitly calling for an audit of certain Minnesota child-care centers as part of its fraud response.
- Adds on-the-record political pushback from Minnesota leaders: Gov. Tim Walz accusing Trump of politicizing fraud to 'defund programs that help Minnesotans,' AG Keith Ellison saying he is exploring legal options to prevent abrupt cuts, and Senate Majority Leader Erin Murphy warning the decision could destabilize the state’s already stressed daycare system.
- Details a specific downstream consequence of the viral Nick Shirley video and federal freeze: vandals targeted Nokomis Daycare Center in Minneapolis, breaking in and stealing children’s and employees’ records.
- Reports that Nokomis is not among the daycares featured in Shirley’s video, indicating potential spillover harassment beyond the named facilities.
- Provides on‑record verification from Minnesota DHS that Nokomis has no fraud history and only minor violations, and from CBS/WCCO that nearly all centers in the video are licensed and recently inspected.
- Quotes Nokomis manager Nasrulah Mohamed publicly distancing the center from fraud allegations and asserting they will not be intimidated.
- Clarifies that the viral video underlying HHS’s freeze was produced by Nick Shirley, not an anonymous or generic source.
- Adds that Shirley’s allegations are not independently verified and provides concrete counterexamples, such as daycare operations captured by other media during his visits.
- Details the political and media ecosystem around the video, including explicit endorsements by VP JD Vance and public commentary by FBI Director Kash Patel, strengthening the causal link between viral content and federal response.
- Shows Shirley monetizing the controversy by fundraising for his personal security and merchandising, indicating how the story has evolved into a broader political-media phenomenon.
- Confirms Deputy HHS Secretary Jim O'Neill publicly announced on X that the freeze is in response to 'blatant fraud' in Minnesota and nationally.
- Specifies that Assistant Secretary Alex Adams says ACF provides $185 million annually in child care funds to Minnesota, serving about 19,000 children.
- Details that O'Neill has demanded an audit of specific Minneapolis daycare centers run by Somali residents, including attendance records, licenses, complaints, investigations and inspections.
- Reports that Adams spoke with Minnesota's child care services director, who reportedly could not say with confidence whether alleged fraud is isolated or statewide.
- Adds that payments through ACF nationwide will now require justification plus a receipt or photo evidence before disbursement, alongside a new fraud-reporting hotline and email address, framed by O'Neill as part of a broader crackdown.
- Provides updated prosecutorial context: 57 Feeding Our Future defendants in Minnesota have been convicted, and a federal prosecutor recently alleged that half or more of roughly $18 billion across 14 Minnesota programs since 2018 may have been stolen, with most defendants Somali American.
- Notes that DHS officials were in Minneapolis the day before the announcement visiting unidentified businesses and questioning workers in fraud probes.
- Quotes Walz characterizing the move as part of 'Trump's long game' and accusing the administration of politicizing fraud to 'defund programs that help Minnesotans,' while saying an audit due by late January should clarify the fraud’s extent.
- President Donald Trump posted on Truth Social calling Minnesota and California 'Crooked States' and labeling Govs. Tim Walz and Gavin Newsom 'Crooked Governors,' asserting their states are 'awash with fraud' and tied for first when 'you add in Election Fraud.'
- Trump specifically alleged that 'up to 90%' of Minnesota fraud is caused by people who came illegally from Somalia, personally attacking Rep. Ilhan Omar and saying 'Send them back from where they came, Somalia.'
- The article explicitly links Trump’s rhetoric to the ongoing Minnesota fraud investigations and the existing HHS freeze, framing it as part of his broader political messaging.
- Gov. Tim Walz responded on X, accusing Trump of 'politicizing the issue to defund programs that help Minnesotans' and saying the president 'has been letting fraudsters out of jail' while Minnesota has been combating fraud.
- Fox notes that it sought comment from the offices of Omar, Newsom and Walz but had not received responses at the time of publication beyond Walz’s public posts.
- Karoline Leavitt explicitly links the child‑care funding cutoff for Minnesota to a broader multi‑agency fraud crackdown coordinated by the White House.
- She frames the HHS freeze as part of a package of federal actions including DOJ warrants, DHS door‑to‑door operations and deportations, and an agency letter demanding Minnesota disclose the name of every SNAP recipient.
- The article underscores that the administration views the Minnesota scandal as a central example in its national fraud‑enforcement push, with Leavitt saying the 'entire administration is working around the clock.'
- DHS confirms it is reviewing immigration and naturalization cases involving migrants from 19 'countries of concern,' including Somalia, for possible fraud that could warrant denaturalization.
- DHS says the review will focus on potential fraud in the immigration or naturalization process, such as marriage fraud or false statements to obtain status or citizenship.
- DHS emphasizes that denaturalization is governed by strict legal standards, is rare, and has historically been pursued only a few dozen times per year.
- The article explicitly links the DHS review to political pressure and GOP calls for tougher consequences following Minnesota’s childcare/social‑services fraud scandals.
- Explicit confirmation that "all child care payments to Minnesota were frozen Tuesday evening" and that this was framed by Axios as stopping child care payments while an investigation proceeds.
- More detailed description of the trigger: the expanded investigation followed viral allegations by MAGA-aligned YouTuber Nick Shirley during Christmas week and responses from the FBI and Vice President J.D. Vance.
- Direct characterization that the Trump administration has "repeatedly portrayed Minnesota as a propagator of fraud, particularly placing blame on the state's large Somali community," adding political and demographic framing to the enforcement move.
- New reaction from Gov. Tim Walz on X accusing Trump of "politicizing the issue to defund programs that help Minnesotans" while asserting Minnesota has spent years cracking down on fraud.
- Additional historical context that beyond Feeding Our Future and housing stabilization probes, Assistant U.S. Attorney Joe Thompson said in December he believes at least $9 billion in federal funds supporting 14 Minnesota-run programs since 2018 may have been stolen.
- Clarification that HHS did not immediately respond to Axios’ request for comment and that O’Neill and Adams have already identified child care centers from Shirley’s videos and demanded detailed records from Minnesota.
- Identifies the specific official making the announcement as HHS Deputy Secretary Jim O'Neill, who also serves as acting CDC director, and notes he made the statement on X.
- Provides a concrete figure for Minnesota’s annual ACF child care allocation: $185 million, which Assistant Secretary Alex Adams says should serve about 19,000 children.
- Details that all ACF child-care payments nationwide will now require 'justification and a receipt or photo evidence' before disbursement, and that HHS has launched a dedicated fraud-reporting hotline and email.
- Reports that O'Neill has formally demanded Gov. Tim Walz submit an audit of Somali‑run Minneapolis day care centers, including attendance records, licenses, complaints, investigations, and inspections.
- Links the Minnesota action explicitly to prior fraud cases, including the Feeding Our Future scandal (57 convictions, about $300 million) and a federal prosecutor’s allegation that up to half of $18 billion in federal funds for 14 Minnesota programs since 2018 may have been stolen, mostly involving Somali American defendants.
- Notes that DHS officials were in Minneapolis the previous day conducting fraud investigations by visiting unidentified businesses and questioning workers.
- Includes direct pushback from Gov. Tim Walz on X, accusing Trump of politicizing the fraud issue as part of a 'long game' to defund programs that help Minnesotans.
- HHS has independently taken action by freezing federal child care money to Minnesota over suspected fraud, rather than waiting for congressionally mandated triggers.
- The department is immediately requiring justifications and receipts or photo evidence for all Administration for Children and Families payments nationwide.
- The Deputy Secretary publicly framed the situation as evidence that fraud is 'rampant' beyond Minnesota.