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HHS Freezes Payments to Minnesota Daycare Centers Cited in Viral Video as State Disputes Fraud Claims

A federal–state dispute is testing public trust in Minnesota childcare oversight.

Overview

  • HHS said federal childcare dollars tied to centers featured in the video will remain frozen until providers submit extensive documentation, including attendance logs and inspection records.
  • The White House said DOJ is executing search warrants and subpoenas, and DHS and the FBI are conducting on-the-ground checks in Minnesota as part of ongoing fraud probes.
  • Minnesota regulators cite recent inspections that recorded children present at the facilities, challenging the video's depiction of empty or inactive centers.
  • Providers and the journalist report threats, harassment and at least one vandalism incident, and officials urge the public to use formal fraud-reporting channels rather than doorstep confrontations.
  • Political amplification has intensified tensions, including an official administration account sharing an AI-generated anti‑Somali clip, and copycat visits in Washington state have drawn rebukes from state leaders and warnings against harassment.