Childcare fraud in Minnesota has been reported since 2014.
On Wednesday, the administration of U.S. President Donald Trump announced the freezing of federal childcare funds for Minnesota and an audit to investigate alleged fraud at daycare centers.
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Jim O’Neill, Deputy Secretary of Health and Human Services (HHS), stated that payments were suspended after allegations that millions of dollars had been diverted to fraudulent daycare centers over the past decade.
In addition, the HHS will tighten requirements for payments from the Administration for Children and Families (ACF) to all states, including justification and receipt or photo evidence.
O’Neill based his assertions on conservative YouTuber Nick Shirley, who released a video showing empty or abandoned daycare centers in Somali communities that receive public funds. However, Minnesota officials have refuted the allegations.
Why are Republicans suddenly upset that criminals committed fraud in Minnesota, when Donald Trump released Phillip Esformes from jail after he committed a $1.2 billion Medicare fraud?
Philip isn’t Somali, so that fraud is all good, I guess. pic.twitter.com/qYIJNUctlp
— Grant Stern (@grantstern) December 29, 2025
The commissioner of the Minnesota Department of Children, Youth, and Families raised concerns about the video, including whether footage was taken during times when the centers were scheduled to be open.
The video adds to Trump’s previous attacks against Minnesota Governor Tim Walz, the state’s Somali community, which he called “trash”, and Congresswoman Ilhan Omar, representative of District 5 of the state.
O’Neill asked Walz for a thorough audit of the centers, including attendance records, licenses, complaints, and inspections, and established a phone line and email address for reporting fraud.
Childcare fraud in Minnesota has been reported since 2014, with cases involving the embezzlement of hundreds of millions of dollars. The Walz administration maintains that it has been investigating and combating these irregularities for a long time.
The United States bombed Yemen, Iran, Nigeria, Venezuela, Somalia, and Syria in 2025.
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