Overview
- Deputy HHS Secretary Jim O’Neill said states must provide receipts or photographic proof before federal childcare dollars will be released.
- An HHS spokesperson clarified the new verification rules apply across all states, with documentation such as attendance records, licenses, inspection reports, complaints and investigations required.
- FBI and DHS teams have executed raids and deployed personnel in Minnesota to investigate alleged large-scale fraud tied to childcare and related programs.
- The expanding inquiry builds on the Feeding Our Future case, a $300 million scheme that led to 57 convictions in Minnesota.
- A federal prosecutor has alleged that half or more of roughly $18 billion sent to 14 Minnesota programs since 2018 may have been stolen, as political tensions rise with President Trump attacking Somali immigrants and Governor Tim Walz urging cooperation without demonizing the community.