January 1, Minnesota Loses Federal Child Care Funds Over Fraud

Wyatt’s Take

• The government froze all federal child care money to Minnesota.
• Officials say millions were sent to fake or empty day care centers.
• Federal agents were sent to Minneapolis to investigate the scheme.

Federal health officials have stopped sending child care funds to Minnesota after major fraud concerns involving taxpayer dollars.

HHS Deputy Secretary Jim O’Neill said they have taken new actions to stop the misuse of money meant for daycares.

“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.”

“Today we have taken three actions…”

— Deputy Secretary Jim O’Neill (@HHS_Jim) December 30, 2025

To receive federal funds now, states must provide proof and a reason for every penny they request.

The department is also demanding a full audit of centers suspected of fraud, including every document and inspection record.

A new hotline lets anyone report possible fraud with childcare funds.

Independent reports claim the fraud involved centers that took public money and barely operated or sat empty, with some tied to recent immigrants.

Homeland Security sent agents to Minneapolis to dig deeper, calling it a “massive investigation” into how public funds were handled.

Tough times call for tough leadership and clear answers—Minnesota families deserve to know where their tax money went and who allowed it to happen.

Wyatt Matters

Middle America expects honesty from government when handling our money, especially funds meant for children. Core values like hard work, integrity, and accountability matter most right now.

Full story at OANN