US Restricts State Childcare Payments on Minnesota Fraud Claims

Jan. 1, 2026, 12:11 AM UTC

The Trump administration is increasing scrutiny of childcare payments to all states following allegations of fraud linked to daycare centers in Minnesota, expanding its efforts to identify any illicit activity in government programs.

The moves come as President Donald Trump has focused on fraud claims in Minnesota, in particular cases involving people of Somali origin and accused the state’s Democratic governor, Tim Walz, of mishandling government funding. The scrutiny on the state intensified in recent days following a viral video that purported to reveal fraud in daycare centers.

Jim O’Neill, the deputy secretary for the Department of Health and ...

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