US freezes child care funding to all states amid fraud scandal – ABC
Posted on: Jan 01, 2026 04:32 IST | Posted by: Rt
The US section of wellness and Human Services is halting union soldier baby give care funding to all states, pending proper paperwork, following a scandal over alleged widespread fraud in daycare centers in Minnesota, an agency official told ABC News.
Federal funds will be released “only when states prove they are being spent legitimately,” the unnamed official stated on Wednesday, but did not provide details on required documentation.
HHS spokesperson Andrew Nixon clarified that even those “not suspected of fraudulent activity” have been asked to submit their “administrative data” for review. Meanwhile those “suspected” of fraud must provide additional records, including “attendance records, licensing, inspection and monitoring reports, complaints and investigations.”
“The onus is on the state to make sure that these funds, these federal dollars, taxpayer dollars, are being used for legitimate purposes,” Nixon told ABC News.
Previously, the HHS froze all child care payments to Minnesota after reports alleged the state had funneled millions of taxpayer dollars to fraudulent daycares over the past decade. It also demanded a comprehensive audit from Minnesota Governor Tim Walz.
Walz has defended his administration, while lauding the state’s diverse makeup and large Somali community, and accusing President Donald Trump of plotting against him.
“This is Trump’s long game. We’ve spent years cracking down on fraudsters. It’s a serious issue - but this has been his plan all along. He’s politicizing the issue to defund programs that help Minnesotans,” Walz said.
The scandal was triggered by conservative influencer Nick Shirley's investigation, who alleged in a lengthy YouTube video a large-scale fraud scheme involving Somali-run childcare centers, estimating over $110 million in fraudulent claims.
Department of Homeland Security Secretary Kristi Noem announced a “massive investigation on childcare and other rampant fraud.” FBI Director Kash Patel said resources had been “surged” to Minnesota, warning that these cases were just “the tip of a very large iceberg” and that perpetrators could face “denaturalization and deportation.”
Global News Perspectives
In today's interconnected world, staying informed about global events is more important than ever. ZisNews provides news coverage from multiple countries, allowing you to compare how different regions report on the same stories. This unique approach helps you gain a broader and more balanced understanding of international affairs. Whether it's politics, business, technology, or cultural trends, ZisNews ensures that you get a well-rounded perspective rather than a one-sided view. Expand your knowledge and see how global narratives unfold from different angles.
Customizable News Feed
At ZisNews, we understand that not every news story interests everyone. That's why we offer a customizable news feed, allowing you to control what you see. By adding keywords, you can filter out unwanted news, blocking articles that contain specific words in their titles or descriptions. This feature enables you to create a personalized experience where you only receive content that aligns with your interests. Register today to take full advantage of this functionality and enjoy a distraction-free news feed.
Like or Comment on News
Stay engaged with the news by interacting with stories that matter to you. Like or dislike articles based on your opinion, and share your thoughts in the comments section. Join discussions, see what others are saying, and be a part of an informed community that values meaningful conversations.
Download the Android App
For a seamless news experience, download the ZisNews Android app. Get instant notifications based on your selected categories and stay updated on breaking news. The app also allows you to block unwanted news, ensuring that you only receive content that aligns with your preferences. Stay connected anytime, anywhere.
Diverse News Categories
With ZisNews, you can explore a wide range of topics, ensuring that you never miss important developments. From Technology and Science to Sports, Politics, and Entertainment, we bring you the latest updates from the world's most trusted sources. Whether you are interested in groundbreaking scientific discoveries, tech innovations, or major sports events, our platform keeps you updated in real-time. Our carefully curated news selection helps you stay ahead, providing accurate and relevant stories tailored to diverse interests.
No comments yet.