Federal Child Care Funds Put on Hold in Minnesota
The Trump administration has suspended federal child care payments to the state of Minnesota while officials review whether the funds were spent in compliance with federal law.
According to the U.S. Department of Health and Human Services, payments will remain frozen until the state demonstrates that taxpayer dollars were used appropriately and for authorized purposes.
Administration Cites Accountability and Legal Compliance
In a statement, the Health and Human Services Department said the action was taken to ensure federal funds are being spent lawfully and as intended.
The department did not specify the exact amount currently withheld. However, Assistant Secretary Alex Adams indicated publicly that Minnesota received approximately $185 million in federal child care funding during the most recent fiscal year.
Governor Pushes Back on Federal Action
Minnesota Governor Tim Walz criticized the funding freeze, arguing that the state has already taken steps to address fraud within its social services programs.
Walz stated that Minnesota has spent years working to identify and prevent misuse of public assistance funds. He accused the administration of using the issue to negatively impact working families in the state.
Increased Federal Scrutiny on Minnesota Programs
The Trump administration has recently increased its focus on Minnesota, asserting that large-scale fraud is occurring within the state’s welfare and health care systems.
Officials have previously raised concerns about misuse of federal benefits and have publicly criticized state leadership for what they describe as inadequate oversight.
President Donald Trump echoed those concerns on social media following the announcement of the funding freeze.
Medicaid Oversight and FBI Involvement
Earlier this month, the administrator of the Centers for Medicare and Medicaid Services issued a formal warning to Minnesota, calling for corrective action to address what federal officials described as systemic Medicaid fraud.
The state was instructed to:
- Provide weekly progress reports
- Freeze enrollment of high-risk providers
- Verify existing providers
- Submit a long-term plan to prevent future fraud
Federal officials also confirmed that the FBI has deployed investigative personnel to Minnesota to target large-scale fraud schemes involving federal programs.
Broader Federal Strategy on Funding Enforcement
The child care funding freeze is part of a broader effort by the Trump administration to enforce compliance with federal laws tied to immigration and social services.
While some federal funding restrictions imposed this year have been challenged and overturned in court, the administration has successfully reduced or eliminated funding in other areas, including foreign aid and certain grant programs.
Related Coverage
National News – https://idahonews.co/national-news/
Idaho News – https://idahonews.co/idaho-news-3/
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