Overview
- HHS halted all federal child‑care payments to Minnesota, roughly $185 million a year, and demanded a comprehensive audit of centers under scrutiny.
- The agency activated a nationwide ACF “Defend the Spend” control that requires receipts or photo evidence before funds are sent, and launched a fraud‑reporting hotline.
- DHS and the FBI have increased on‑the‑ground operations in Minnesota connected to suspected fraud in social service and daycare programs.
- State regulators said recent unannounced inspections of the centers featured in the video found children present with attendance consistent with expectations, and no findings of fraud at those specific sites.
- The clash unfolds against years of Minnesota fraud probes and prosecutions, including Feeding Our Future, while a multibillion‑dollar loss estimate cited by a federal prosecutor remains disputed by state officials.