Overview
- The U.S. Department of Health and Human Services halted all federal child care disbursements to Minnesota, which state media report total about $185 million annually.
- HHS activated its Defend the Spend system for all Administration for Children and Families payments, began requiring documentation before funds are released nationwide, demanded a comprehensive audit from the governor’s office, and opened a fraud‑reporting hotline.
- Federal law enforcement said they have surged resources to Minnesota, with DHS sharing video of agents visiting locations and the FBI describing intensified efforts to investigate suspected large‑scale fraud.
- Minnesota regulators said the facilities featured in the video were recently inspected with children present and no evidence of fraud found at those sites, and local reporters observed children at one center shown in the footage.
- Governor Tim Walz called the funding freeze political, Republican officials pressed for tougher measures including denaturalization for those convicted of fraud, and Somali community leaders reported backlash extending to other states.