The administration of former US President Donald Trump has implemented a sweeping nationwide freeze on federal child care funding. The move mandates all 50 states to clear additional verification hurdles before funds are released, a decision that has ignited significant political and legal opposition. The state of Minnesota, where recent fraud investigations have garnered widespread attention, finds itself at the epicentre of this intensified scrutiny.
Nationwide Freeze and Enhanced Scrutiny for Minnesota
According to a spokesperson from the US Department of Health and Human Services (HHS), all states must now submit extra verification and administrative data to receive future payments from the Child Care and Development Fund (CCDF). While this applies universally, Minnesota will confront stricter requirements. These include providing attendance logs, licensing records, inspection reports, and past enforcement action documents for child care centres under suspicion.
Deputy Secretary of HHS, Jim O'Neill, justified the decision by citing concerns over the widespread misuse of public money. In a social media announcement, O'Neill labelled the action a necessary response to what he called "blatant fraud that appears to be rampant in Minnesota and across the country." Initially, it was indicated that all payments from the Administration for Children and Families (ACF) would need justification with receipts or photo evidence. However, HHS later clarified that the enhanced measures are specific to CCDF funding and not all ACF programmes.
Strong Political Backlash and Legal Threats
Democratic leaders in Minnesota have fiercely condemned the funding freeze, accusing the Trump administration of politicising fraud enforcement. State Attorney General Keith Ellison stated his office is "exploring all our legal options" to prevent vital childcare services from being abruptly cut. He suggested the move was based on "pretext and grandstanding."
Governor Tim Walz acknowledged fraud as a serious issue the state has long addressed but framed the federal action as part of "Trump’s long game." State Senate Majority Leader Erin Murphy was more blunt, accusing Republicans of "playing sick games" and warning that "tens of thousands of Minnesota families will pay the price" as crucial funding is stripped away.
Broader Crackdown and Community Impact
The freeze aligns with a wider federal crackdown on alleged fraud in states led by Democrats. White House Press Secretary Karoline Leavitt stated the administration is examining potential fraud in other programmes, including unemployment insurance in Minnesota and initiatives in California and New York. Leavitt also mentioned ongoing investigations into "potential fraud sites" in Minnesota and plans concerning undocumented immigrants.
The controversy has sharply focused on Minnesota's Somali community, the largest such diaspora in the US. The issue gained momentum after a right-wing influencer's video alleged up to $100 million in fraud at Somali-run day care centres—a claim referenced by O'Neill. This has raised serious concerns about racial and religious profiling. Critics argue the administration is singling out the community, a charge amplified by reports of harassment targeting centres featured in the viral video.
Child care providers warn of dire consequences. Maria Snider, a director and vice president of the Minnesota Child Care Association, said the freeze is causing fear and uncertainty. She warned that without federal subsidies, centres may be forced to lay off staff or shut down classrooms. The ACF provides approximately $185 million annually in child care funds to Minnesota, according to Assistant Secretary Alex Adams.
Ahmed Hasan, director of the ABC Learning Center—one facility named in the viral video—reported receiving threatening calls. He asserted his centre, which has 56 enrolled children and is regularly inspected, is operating legitimately. "There’s no fraud happening here," Hasan told The Associated Press. "We are open every day, and we have our records to show that this place is open."
