00:00The Federal Child Care and Development Block Grant Program aims to foster, as you know, healthy childhood development by improving the quality and access to low-income families for child care.
00:12It provides states some flexibility to develop these policies to meet these needs at the various states.
00:17Programs include requirements as well, though, for states to monitor providers that receive federal funds.
00:23Now, unfortunately, there's been a situation in my home state of Minnesota where we've got a number of daycare providers that are openly violating federal and state laws and regulations,
00:34taking money for personal use, using the money to set up a fraudulent child care client, and then providing a kickback has been reported.
00:42This is a major issue. There are allegations that, well, not just several, you've got 23 child care or daycare centers either closed or under investigation.
00:52The fraud may go as high as $100 million.
00:55Now, think about that. In fiscal year 2018, Minnesota received $120 million in federal funding.
01:00The state contributed about $50 million in matching and maintenance funds, and we may have a fraud case of nearly $100 million in this state,
01:08with money then being transferred out of the country via MSP Airport.
01:13This is a big issue in my home state of Minnesota.
01:15Can you share with me what your agency is doing to investigate this?
01:19Congressman, thank you for raising that important issue.
01:21We actually are integrated with the Minnesota Department of Human Services on the issue that you have raised regarding these allegations of fraud committed by child care providers.
01:31These do involve allegations of child care providers serving families that are receiving subsidies from the Child Care Development Fund.
01:40The DHS, the Minnesota DHS, has agreed us to provide information as they conduct their work,
01:46and after they've completed their work, an ongoing investigation, we'll certainly be taking any steps necessary to protect the federal side of this.
01:52So, thank you. We are very much connected with Minnesota on this important issue.
01:56That is very much connected with Minnesota.
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