Wed Dec 31 10:40:00 UTC 2025: Federal Government Freezes Child Care Funds to Minnesota Amid Fraud Allegations
Minneapolis, MN – The U.S. Department of Health and Human Services (HHS) has frozen all child care payments to Minnesota, citing ongoing investigations into alleged fraud within the state’s child care system. The move comes as the FBI and Department of Homeland Security (DHS) intensify their presence in the state, home to the largest Somali population in the country.
Deputy Secretary of HHS Jim O’Neill announced the funding freeze on X (formerly Twitter), citing the need for states to provide justification and receipts for all payments from the agency’s Administration of Children and Families. “Funds will be released only when states prove they are being spent legitimately,” O’Neill stated. Minnesota receives $185 million in federal child care funding, impacting approximately 19,000 children.
The federal action follows a viral video posted by a conservative YouTuber alleging widespread fraud at Somali-run child care centers. The video, which has garnered over 2 million views and was retweeted by prominent figures, presents limited evidence but has fueled anti-immigrant rhetoric.
In addition to the child care funding freeze, the Small Business Administration has suspended funding to Minnesota to investigate $430 million in suspected PPP fraud. Meanwhile, ICE has launched operations targeting undocumented Somali immigrants in the Minneapolis-St. Paul area.
Minnesota Governor Tim Walz says his administration has spent years cracking down on fraud, referring cases to law enforcement, and shutting down high-risk programs, and is seeking more authority from the legislature to take aggressive action.
Critics argue that the increased scrutiny unfairly targets the Somali community, while supporters claim it is a necessary step to ensure taxpayer dollars are used responsibly. The investigations are ongoing, with federal agencies vowing to “follow the money” and protect children.
First Piper 