US Freezes Minnesota Childcare Funds Amid Fraud Claims, Escalating Political Battle

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Moneycontrol•31-12-2025, 22:56
US Freezes Minnesota Childcare Funds Amid Fraud Claims, Escalating Political Battle
- •The US has frozen childcare payments to Minnesota over alleged fraud in government programs, demanding a comprehensive audit.
- •HHS Deputy Secretary Jim O’Neill announced the freeze, citing millions of taxpayer dollars funneled to fraudulent daycares.
- •President Trump accused Governor Tim Walz of mishandling funds, linking fraud to Somali immigrants and suggesting denaturalization.
- •Governor Walz criticized Trump for politicizing the issue, stating it's a 'long game' to defund programs helping Minnesotans.
- •The administration also halted $5.5 million in SBA funding and is auditing immigration cases, including for Somali refugees.
Why It Matters: US freezes Minnesota funds over fraud, sparking political clash and immigration crackdown.
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