The Department of Health and Human Services has frozen federal child care payments to Minnesota amid a widespread fraud scandal hitting the state.
HHS Deputy Secretary Jim O’Neill announced the move on social media, writing, “We have frozen all child care payments to the state of Minnesota. You have probably read the serious allegations that the state of Minnesota has funneled millions of taxpayer dollars to fraudulent daycares across Minnesota over the past decade.”
The new action requires ACF payments across the nation to include a “justification and a receipt or photo evidence before we send money to a state.” O’Neill has also demanded that Governor Walz (D) provide a “comprehensive audit” of the centers. “This includes attendance records, licenses, complaints, investigations, and inspections.”
A hotline addressing fraud has also been launched. “We have launched a dedicated fraud-reporting hotline and email address at childcare.gov. Whether you are a parent, provider, or member of the general public, we want to hear from you,” the statement continued.
In a video attached to O’Neill’s post, HHS Assistant Secretary Alex Adams stated: “My office, ACF, provides Minnesota $185 million in child care funds each year. That money should be helping 19,000 American children, including toddlers and infants. Any dollar stolen by fraudsters is stolen from those children.”
O’Neill said in the video, “We’re committed to holding bad actors accountable. Regardless of rank or office, anyone who’s involved in perpetrating this fraud against the American people should expect to be prosecuted to the fullest extent of the law.”
The Department of Homeland Security recently shared on social media following reports of widespread fraud that agents were going “DOOR TO DOOR at suspected fraud sites.”
“The American people deserve answers on how their taxpayer money is being used and ARRESTS when abuse is found,” the agency wrote. “Under the leadership of [Secretary Kristi Noem], DHS is working to deliver results.”
