Overview
- HHS activated a “defend the spend” process that requires written justification, receipts, or photo evidence before releasing federal child-care dollars to states.
- Payments to Minnesota are paused as HHS demands a comprehensive review of targeted centers, in a state that typically receives about $185 million a year to subsidize care for tens of thousands of children.
- Homeland Security Investigations and the FBI say they have surged personnel in Minnesota as broader fraud probes continue.
- Gov. Tim Walz and Attorney General Keith Ellison criticize the action as politicized and consider legal options, while providers warn the cash freeze could force layoffs, closures, and missed work for parents.
- The shift followed a viral video alleging empty daycare sites that President Trump amplified with sweeping fraud claims, even as local checks found most cited facilities licensed and recently inspected.