Trump Admin Freezes Minnesota Child Care Funds Over Alleged Widespread Fraud

• The Trump administration froze all federal child care payments to Minnesota due to alleged large-scale fraud in programs supporting families.
• Jim O’Neill announced the freeze, citing long-standing concerns about taxpayer funds being diverted to fraudulent daycare operators.
• A new "defend the spend" system requires justification and evidence for all ACF payments nationwide, alongside a statewide audit and fraud hotline.
• The action follows years of fraud investigations in Minnesota, including the $300 million Feeding Our Future case, the largest COVID-19-related fraud scheme.
• Governor Tim Walz pledged cooperation, while Representative Ilhan Omar warned against collective blame, and a YouTuber's video highlighted irregularities.

Why It Matters: Federal child care funds to Minnesota are frozen amid a major fraud crackdown and new payment rules.