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Moneycontrol31-12-2025, 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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