{"id":13153,"date":"2025-12-30T22:23:40","date_gmt":"2025-12-30T23:23:40","guid":{"rendered":"https:\/\/globaltalenthq.com\/?p=13153"},"modified":"2026-01-05T18:40:50","modified_gmt":"2026-01-05T18:40:50","slug":"us-cuts-off-minnesotas-child-care-funding-amid-massive-fraud-probe","status":"publish","type":"post","link":"https:\/\/globaltalenthq.com\/index.php\/2025\/12\/30\/us-cuts-off-minnesotas-child-care-funding-amid-massive-fraud-probe\/","title":{"rendered":"US cuts off Minnesota\u2019s child care funding amid massive fraud probe"},"content":{"rendered":"
Federal agents kicked off a large-scale investigation after a YouTuber claimed to have uncovered a massive Somali-run scam in Minneapolis<\/strong><\/p>\n The US has frozen all child care payments to the state of Minnesota following allegations of widespread fraud, according to Deputy Secretary of Health and Human Services Jim O’Neill.<\/p>\n The move came after reports surfaced alleging that Minnesota had funneled millions of taxpayer dollars to fraudulent daycares over the past decade.<\/p>\n “We have frozen all child care payments to the state of Minnesota,”<\/em> O’Neill said in a statement on X, outlining three additional actions taken in response to the alleged fraud.<\/p>\n O’Neill stated that he had activated the “Defend the Spend”<\/em> system for all Administration for Children and Families (ACF) payments, requiring justification and proof of receipt before funds are disbursed.<\/p>\n We have frozen all child care payments to the state of Minnesota.<\/p>\n You have probably read the serious allegations that the state of Minnesota has funneled millions of taxpayer dollars to fraudulent daycares across Minnesota over the past decade.<\/p>\n Today we have taken three actions\u2026 pic.twitter.com\/VYbyf3WGop<\/a><\/p>\n — Deputy Secretary Jim O'Neill (@HHS_Jim) December 30, 2025<\/a><\/p><\/blockquote>\n He also demanded a comprehensive audit from Minnesota Governor Tim Walz, including attendance records, licenses, complaints, investigations and inspections of the centers in question. Additionally, a dedicated fraud-reporting hotline has been launched.<\/p>\n \n Read more<\/strong><\/span><\/p>\n ACF Assistant Secretary Alex Adams stated that his office provides Minnesota with $185 million in childcare funds annually, intended to benefit approximately 19,000 American children.<\/p>\n “Any dollar stolen by fraudsters is stolen from those children,”<\/em> Adams said.<\/p>\n The investigation was prompted by a video posted by YouTuber Nick Shirley, who alleged a large-scale fraud scheme involving Somali-run childcare centers, estimating over $110 million in fraudulent claims.<\/p>\n In response, Department of Homeland Security Secretary Kristi Noem announced a “massive investigation on childcare and other rampant fraud,”<\/em> posting videos of agents questioning business operators.<\/p>\n\n
