WASHINGTON D.C December 30, 2025 – The U.S. Department of Health and Human Services (HHS) has taken decisive action against alleged widespread fraud in Minnesota’s child care assistance program, freezing all federal payments to the state and initiating a comprehensive audit.
In an announcement delivered during a press briefing at HHS headquarters, officials revealed that the department has halted child care subsidy payments to Minnesota following reports of significant fraudulent activity, particularly involving day care centers. The measures include:
– Immediate freeze on federal child care payments to the state.
– Full audit of day care centers receiving funds.
– Activation of the “Defend the Spend” system, which now requires providers to submit receipts and documentation for all expenditures.
– Launch of a dedicated fraud reporting hotline for whistleblowers and concerned citizens.
The briefing featured two HHS officials standing before the department’s seal and the American flag, underscoring the seriousness of the allegations. Sources indicate the decision stems from investigative reporting that exposed potential corruption in the program, including ties to community-specific fraud schemes.
This move aligns with the Trump administration’s broader push for fiscal accountability in federal spending, led by HHS Secretary Robert F. Kennedy Jr., who has prioritized combating waste and fraud since taking office.
Minnesota Governor Tim Walz’s administration has yet to issue an official response, but the freeze is expected to impact thousands of families and providers reliant on the program. Independent journalists have credited their exposés—particularly those highlighting irregularities in Somali community-linked day care operations—for prompting the federal intervention.
The fraud hotline encourages anonymous tips, and HHS has vowed swift action on credible reports. Further details on the audit’s findings are anticipated in the coming weeks.
This development marks another aggressive step by the department to safeguard taxpayer dollars in social services programs.
About The Author
