Particle.news
Download on the App Store
58 ARTICLES
·
16h ago

HHS Freezes Minnesota Child-Care Funds and Tightens National Checks as Fraud Probes Intensify

HHS cites the need for stricter verification, with Minnesota leaders calling the action political.

President Donald Trump speaks at a New Year's Eve celebration at his Mar-a-Lago club, Wednesday, December 31, 2025, in Palm Beach, Florida.
Children watch television at ABC Learning Center in Minneapolis, Minnesota, on Wednesday, December 31, 2025.
NEW YORK, NEW YORK - OCTOBER 22: Conservative influencer Nick Shirley films protestors demonstrating against U.S. Immigration and Customs Enforcement (ICE) arrests on October 22, 2025 in New York City. Federal agents arrested nine individuals during an operation on Manhattan's Canal Street on Tuesday, targeting undocumented immigrants potentially linked to illegal street vending, according to officials and a senior law enforcement source familiar with the investigation. (Photo by Adam Gray/Getty Images)
Donald Trump as he signs a series of executive orders in the Oval Office on Feb. 10, 2025.

Overview

  • Deputy Secretary Jim O’Neill said child-care payments to Minnesota are paused and that CCDF disbursements nationwide now require receipts or photo evidence before payment, with HHS clarifying the rules apply to CCDF rather than all ACF programs.
  • Minnesota receives about $185 million a year in federal child-care support, and state officials including Governor Tim Walz and Attorney General Keith Ellison objected to the freeze and said they are weighing legal options.
  • Federal law enforcement has surged resources to Minnesota as DOJ prosecutions tied to earlier cases continue and officials review broader losses that have been estimated in the billions since 2018.
  • House Oversight Chair James Comer scheduled a fraud hearing for January 7 and announced a second session for February 10, inviting Gov. Walz and Attorney General Keith Ellison to testify.
  • A viral video by YouTuber Nick Shirley alleging empty, taxpayer-funded daycares helped drive scrutiny, while some operators deny wrongdoing and report harassment, and Shirley rejected claims that Minnesota GOP leaders worked with him.