US EditionMinnesota Investigators Say Child Care Centers Accused of Fraud in Viral Video Are Operating Normally. Here’s What Comes Next
Federal child care funds totaling $12.3 billion require states to prove legitimate spending after Minnesota fraud allegations prompted payment freezes, HHS said.
- On Tuesday, President Donald Trump's administration announced states must provide written justification, receipts, or photos to receive federal child‑care dollars after allegations of fraud in Minnesota led HHS to freeze payments.
- A Craigslist ad in Minneapolis showed a removed listing seeking `20 child actors` for daycare, offering `$1500 per day`, while Nick Shirley's viral posts helped prompt federal scrutiny.
- CCDF funding stood at roughly $12.3 billion in fiscal year 2025, comprising $8.75 billion from CCDBG and $3.55 billion from CCES, providing federal funds to help low‑income families obtain child care.
- Advocates warned the action may disrupt payments, delaying funds for parents and children who rely on CCDF-funded care, while federal action intensified political debate nationwide after viral claims prompted the shift.
- HHS Deputy Secretary Jim O'Neill posted that he had `activated our defend the spend system` for all ACF payments and clarified shortly that `funds will be released only when states prove they are being spent legitimately`, while HHS acknowledged limited specifics on review procedures.
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