Overview
- Deputy HHS Secretary Jim O’Neill said the agency halted all federal child-care payments to Minnesota and ordered a comprehensive audit, adding that payments now require receipts or photo evidence before release.
- Federal officials say enhanced verification is being extended beyond Minnesota as part of a broader review of child-care funding, according to multiple reports and HHS comments reported by CNN.
- President Donald Trump amplified fraud claims, floated large loss figures, and vowed aggressive investigations, while Gov. Tim Walz accused the administration of politicizing the issue and said Minnesota is cooperating.
- A 42-minute video by YouTuber Nick Shirley alleging empty, publicly funded day cares surpassed 130 million views and spurred fresh inspections, though aspects of his claims are disputed and he denied working with a GOP legislative leader.
- Tensions have risen for Somali American providers, with one Minneapolis day care reporting a break-in and threats, as DOJ-led fraud prosecutions continue, including 57 convictions in the Feeding Our Future case.