The Trump administration has announced a freeze on federal child care funds to Minnesota following multiple large-scale fraud investigations tied to publicly funded programs. Federal officials say the move comes after years of alleged fraud involving hundreds of millions of dollars — including the massive Feeding Our Future scandal. Minnesota Governor Tim Walz is pushing back, calling the freeze political and warning that it could hurt families who rely on assistance. The decision has sparked national debate over fraud, accountability, and the future of child care support programs. #TrumpAdministration #MinnesotaNews #ChildCareFundsFreeze #FederalFundsFreeze #TrumpVsMinnesota #GovTimWalz #USPolitics #BreakingNews #ChildCareCrisis #FraudInvestigation #FeedingOurFuture #MinnesotaScandal #PublicFundsFraud #HHSAnnouncement #NationalNews #USGovernment #FraudCrackdown
00:03I'm here with Assistant Secretary Alex Adams.
00:06Alex oversees the Administration for Children and Families.
00:09Intrepid journalists have made shocking and credible allegations of extensive fraud in Minnesota's child care programs.
00:16We believe the state of Minnesota has allowed scammers and fake daycares to siphon millions of taxpayer dollars over the past decade.
00:22My office, ACF, provides Minnesota $185 million in child care funds each year.
00:28That money should be helping 19,000 American children, including toddlers and infants.
00:33Any dollar stolen by fraudsters is stolen from those children.
00:38Yesterday, I spoke directly with the director of the Minnesota Child Care Services Office.
00:42She could not tell me with confidence whether those allegations of fraud are isolated or whether there's fraud stretching statewide.
00:49Today, we have taken three direct actions against the blatant fraud that seems to be rampant in Minnesota.
00:54First, I have activated our Defend the Spend System for all ACF child care payments across America.
01:01Starting today, we require a justification, receipt, or photo evidence before we make a payment.
01:07Second, I have just signed and sent a demand letter to Governor Walz.
01:11I required a full 360 review of these centers.
01:15This includes attendance records, licenses, complaints, investigations, and inspections.
01:20And third, we've launched a dedicated fraud reporting hotline and email address at childcare.gov.
01:26Whether you're a parent, a provider, a member of the public, we want to hear from you.
01:30Let me be crystal clear.
01:32ACF expects every state to uphold the highest standards of oversight, monitoring, and accountability for federal dollars.
01:39Minnesota is no exception.
01:40We're committed to holding bad actors accountable.
01:44Regardless of rank or office, anyone who's involved in perpetrating this fraud against the American people should expect to be prosecuted to the fullest extent of the law.
01:53Intrepid journalists have made shocking and credible allegations of extensive fraud in Minnesota's child care programs.
01:59We believe the state of Minnesota has allowed scammers and fake daycares to siphon millions of taxpayer dollars over the past decade.
02:05My office, ACF, provides Minnesota $185 million in child care funds each year.
02:12That money should be helping 19,000 American children, including toddlers and infants.
02:17Any dollar stolen by fraudsters is stolen from those children.
02:21Yesterday, I spoke directly with the director of the Minnesota Child Care Services office.
02:26She could not tell me with confidence whether those allegations of fraud are isolated or whether there's fraud stretching statewide.
02:32Today, we have taken three direct actions against the blatant fraud that seems to be rampant in Minnesota.
02:38First, I have activated our Defend the Spend system for all ACF child care payments across America.
02:45Starting today, we require a justification, receipt, or photo evidence before we make a payment.
02:50Second, I have just signed and sent a demand letter to Governor Walz.
02:55I required a full 360 review of these centers.
02:59This includes attendance records, licenses, complaints, investigations, and inspections.
03:03And third, we've launched a dedicated fraud reporting hotline and email address at childcare.gov.
03:09Whether you're a parent, a provider, a member of the public, we want to hear from you.
03:13Let me be crystal clear, ACF expects every state to uphold the highest standards of oversight, monitoring, and accountability for federal dollars.
03:22Minnesota is no exception.
03:24We're committed to holding bad actors accountable.
03:27Regardless of rank or office, anyone who's involved in perpetrating this fraud against the American people
03:32should expect to be prosecuted to the fullest extent of the law.
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