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HHS Freezes Payments to Targeted Minnesota Child-Care Centers as Providers Challenge Viral Fraud Claims

State inspection records from recent visits reporting children on site complicate the allegations driving the freeze.

Overview

  • Federal officials halted payments to the cited centers and ordered audits, requiring attendance logs, inspection reports and complaint histories before funds can resume.
  • Minnesota regulators say they observed children during visits to the facilities within the past 10 months, undercutting assertions that the centers are empty.
  • Several operators dispute the video’s methods and timing, with one citing security footage showing a visit during closed hours and another saying staff hesitated over fears the visitors were from immigration enforcement.
  • The action arrives during broader state and federal probes of Minnesota social-service programs, with HHS also tightening verification rules for child-care funding nationwide.
  • Minnesota Democrats condemned the restrictions as politically driven, as community leaders reported harassment of Somali American-run centers and the president’s remarks about Somali immigrants drew criticism.