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It’s official—the U.S. Department of Health and Human Services is cutting child care funding to Minnesota and tightening national controls

by Sandra V
January 5, 2026
in Economy
It's official—the U.S. Department of Health and Human Services is cutting child care funding to Minnesota and tightening national controls

It's official—the U.S. Department of Health and Human Services is cutting child care funding to Minnesota and tightening national controls

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The U.S. government has made an important decision related to the federal money used to help pay for child care. In particular, we are going to talk about the Donald Trump Administration’s decision to temporarily stop payments to help pay for nurseries and child care programs in the state of Minnesota.

This situation affects families, child care centers, and state governments. It is also connected to fraud allegations, viral social media videos, and ongoing investigations by federal agencies. So, let’s learn more about what’s going on.

The decision

The U.S. Department of Health and Human Services (HHS) announced that it will stop all federal payments used to help pay child care in Minnesota. This means that, for now, the state won’t receive any money from the federal government to help fund nurseries and other child care services.

This decision was made after a video went viral on social media, in which it was confirmed that nurseries in Minnesota weren’t operating, but still received government money.

Fraud

According to the federal government, the video shows alleged proof of some child care facilities not being open or operating. However, they were still receiving state and federal funds.

For this reason, the HHS decided to stop payments while there’s an investigation going on to know whether the money was being properly used or not. The government said that they want to make sure every dollar reach only legitimate programs.

New rules for child care payments

Apart from stopping payments in Minnesota, the government announced new rules that will be applied in the entire country. From now on, federal payments for child care programs must meet with stricter requirements, such as:

  • Clearly explain what the money will be used for.
  • Proof such as receipts or photos.
  • Evidence that the funds are being spent legally.

What the government of Minnesota said

Minnesota governor, Tim Walz, publicly responded to this decision by stating that his government has been fighting against fraud for so many years, and that this issue is not something new.

According to Walz, the federal government is using this issue with political purposes and this situation will harm families who rely on child care support. For him, fraud is a serious issue, but freezing the help is not the right solution.

FBI and other agencies

THe FBI is actively investigating fraud accusations in Minnesota. In fact, the FBI director said that more resources were sent to the state to analyze these cases.

What’s more, these investigations have mainly focused on members of Minnesota’s Somali community, which has caused controversy. This community has been mentioned repeatedly in political discussions related to fraud, and this has raised concerns among many people.

The White House

From the White House, several workers stated that:

  • Search warrants and subpoenas are being carried out.
  • Arrests could happen if fraud is proven.
  • In some cases, citizenship could be revoked for people convicted of fraud.

These comments have been criticized for being very strong and for potentially affecting entire communities.

Fraud in Minnesota

This situation is not new in Minnesota, there was an important case of fraud in 2022 related to a child nutrition federal program. In this case:

  • More than 70 people were charged.
  • The fraud involved about $250 million.
  • One person was identified as the main organizer and was convicted.

This shows that there were real problems in the past, although it doesn’t mean that all current nurseries are involved.

Local authorities

Minnesota officials had something to say about the day care centers shown in the video:

  • One of the child care centers shown in the video closed in 2022.
  • Other centers mentioned still have active licenses.

This has raised questions about whether the video gives a full and accurate picture of the situation.

So…

The issue combines government funding, fraud investigations, political disagreements, and the real-life impact on children and parents, making it a complex and emotional topic across the country.

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