Washington, D.C. | December 31, 2025
Trump Administration Halts Minnesota Child Care Funding Amid Fraud Allegations
The Trump administration has announced a decision to halt federal child care funding to the Democratic-led state of Minnesota, citing alleged large-scale fraud within state child care programs. The move has triggered sharp criticism from Minnesota Governor Tim Walz, who described the action as politically motivated.
The decision was made public on Tuesday by U.S. Deputy Health Secretary Jim O’Neill, who shared the announcement through a social media post. According to the administration, the funding freeze follows findings of alleged fraud within Minnesota’s child care assistance system.
Federal Government Cites Widespread Fraud
O’Neill stated that the suspension of funds was a direct response to what he described as “open and widespread fraud” affecting Minnesota and other parts of the country. Federal officials allege that fraudulent activities were uncovered in several daycare centers during inspections conducted by Homeland Security investigators in Minneapolis.
The administration claims that approximately $100 million in fraudulent claims were linked to daycare facilities allegedly operated by individuals of Somali origin. Authorities have announced plans to conduct detailed audits of the implicated child care centers.
Minnesota Governor Pushes Back
Governor Tim Walz strongly opposed the decision, arguing that while fraud is a serious issue, Minnesota authorities have been addressing it for years. In a social media post, Walz accused the Trump administration of politicizing the issue by withholding funds from programs that support working families.
“Fraud is a legitimate concern, but cutting off funding for programs that help Minnesotans is part of a broader political strategy,” Walz said, adding that the move harms vulnerable communities rather than addressing the problem constructively.
Concerns Over Targeting a Community
Democratic Representative Ilhan Omar of Minnesota, who is of Somali descent, also weighed in, cautioning against blaming an entire community for the alleged actions of a few individuals. Omar stated that wrongdoing by some should not lead to broad accusations against Somali Americans.
Federal agencies maintain that investigations are ongoing and emphasize that audits will determine the full scope of the alleged fraud.
