As of December 30, 2025, the Trump Administration has frozen all federal childcare funding to all 50 states. Citing concerns over fraud in daycare programs as the reason, with Minnesota being under heightened scrutiny. According to the Guardian officials say that funding will be released only once states have provided documentation proving the money is being spent legitimately.
This comes after years of alleged fraud in Minnesota programs, which includes a $300 million pandemic food program scam involving the nonprofit Feeding Our Future, resulting in the conviction of 57 individuals. Federal prosecutors have also alleged that over half of $18 billion in federal funds for 14 Minnesota programs since 2018 may have been stolen.
HHS Deputy Secretary Jim O’Neil and Assistant Secretary Alex Adams announced that all administration for children and family payments nationwide will now require justification, receipts, and/or photo evidence before funds are released. With Minnesota facing additional verification including things like attendance record, licensing, inspections, complaints, and past enforcement actions.
The administration’s actions were in part prompted by a viral video from right-wing influencer (Nick Shirley) who claimed that Somali-American daycare centers in Minneapolis committed up to $100 million in fraud. However these claims have yet to be verified. With Homeland Security officials having been conducting on-site investigations, questioning daycare workers, and visiting businesses suspected of fraud.
by the White House, from Wikimedia Commons, on October 8 2025
According to AP news Minnesota Governor Tim Walz has condemned the freeze, saying it’s a part of “Trump’s long game”, going on to stress that the state has spent years cracking down on fraud. Other state leaders, including Senate Majority Leader Erin Murphy, warned that tens of thousands of families could be affected, with the childcare system already being strained and at risk.
The freeze comes as a part of a broader federal effort to combat fraud in multiple programs. For example, the Department of Labor is investigating Minnesota’s unemployment insurance program, and the Department of Agriculture has threatened to withhold SNAP funding unless the state’s more than 100,000 households and conducts in-person interviews. With federal officers possibly continuing to investigate potential fraud sites nationwide.
Despite criticism saying that the freeze unfairly targets the Somali-American community, the Trump administration has stated that the freeze is necessary to protect taxpayer dollars and ensure that federal funds reach children as intended. As for now the payments will remain frozen until states are able to provide the required verification and documentation.
