Minnesota officials have until next week to hand over information on providers and parents who receive that the Trump administration contends have been used fraudulently or risk losing federal funding. State officials said Friday recent inspections showed several childcare centers accused of fraud by a right-wing influencer were 鈥渙perating as expected.鈥�
In an email sent Friday to child care providers and shared with The Associated Press by multiple providers, Minnesota鈥檚 Department of Children, Youth, and Families said it has until Jan. 9 to provide information about recipients of the funds.
The announcement earlier this week by the Trump administration that it would freeze child care funds to Minnesota and the rest of the states comes after a series of involving government programs in which many defendants were Somali, as were many of those running spotlighted childcare centers.
Allegations of fraud at the child care centers went viral recently when a right-wing influencer posted a video claiming there was fraud taking place, putting Minnesota and some other states in the crosshairs of the Trump administration.
State officials said investigators did spot checks and reviews of nine centers this week in response to the influencer’s video posted last week, and found no operational issues. One center was not yet open at the time, and there are ongoing investigations at four of them.
The email sent Friday instructed providers and families who rely on the frozen federal child care program to continue the program鈥檚 鈥渓icensing and certification requirements and practices as usual.鈥� It does not say that recipients themselves need to take any action or provide any information.
鈥淲e recognize the alarm and questions this has raised,鈥� the email said. 鈥淲e found out about the freezing of funds at the same time everyone else did on social media.鈥�
The state agency added that it 鈥渄id not receive a formal communication from the federal government until late Tuesday night,鈥� which was after Health and Human Services Deputy Secretary Jim O鈥橬eill about the freeze on X. All 50 states will have to provide additional levels of verification and administrative data before they receive more funding from the Child Care and Development Fund, which is designed to make child care affordable for low-income families.
Minnesota is a target
The U.S. House Committee on Oversight and Government Reform will hold a hearing Wednesday to discuss the allegations of fraudulent use of federal funds in Minnesota. An HHS spokesperson said that the child care fraud hotline put up by the federal agency earlier this week has received more than 200 tips.
Minnesota has drawn ire from Republicans and the Trump administration over other fraud accusations.
Administration for Children and Families Assistant Secretary Alex Adams told Fox 海角社区app on Friday that his agency sent Minnesota a letter last month asking for information on the child care program and other welfare programs by Dec. 26, but didn’t get a response. The state did not immediately respond to a request for comment. President Donald Trump has also targeted the state’s with immigration enforcement actions and called them 鈥済arbage.鈥�
Minnesota Democrats say the Trump administration is playing politics and hurting families and children as a result. Minnesota’s Department of Children, Youth and Families said in a press release Friday that inspectors conduct regular oversight activities for the child care program, noting that there are 55 related open investigations involving providers.
鈥淒CYF remains committed to fact-based reviews that stop fraud, protect children, support families, and minimize disruption to communities that rely on these essential services,” the department said. “Distribution of unvetted or deceptive claims and misuse of tip lines can interfere with investigations, create safety risks for families, providers, and employers, and has contributed to harmful discourse about Minnesota鈥檚 immigrant communities.鈥�
It is unclear how recipients will be impacted
Maria Snider, director of a child care center in St. Paul and vice president of advocacy group Minnesota Child Care Association, said providers currently get paid at least three weeks after services are provided. Some 23,000 children and 12,000 families receive funding from the targeted child care program each month on average, according to the state.
鈥淔or a lot of centers, we鈥檙e already running on a thin margin,鈥� she said. 鈥淓ven centers where 10 to 15% of their kids are on childcare assistance, that鈥檚 a dip in your income.鈥�
Any child who attends a child care center with attendees who receive federal funding could be impacted, Snider said.
The Administration for Children and Families, a division of the U.S. Department of Health and Human Services, provides $185 million in child care funds annually to Minnesota, federal officials have said.
According to the Friday email from Minnesota鈥檚 Department of Children, Youth, and Families, HHS sent a letter to Minnesota asking for data from 2022 to 2025, including identifying information of all recipients of the child care funds, a list of all providers who receive the funds, how much they receive and 鈥渋nformation related to alleged fraud networks and oversight failures.鈥� It鈥檚 unclear whether Minnesota already has the data the administration is asking for.
HHS said five child care centers that receive funds from the child care program or Temporary Assistance for Needy Families would have to provide 鈥渟pecific documentation鈥� such as attendance, inspections and assessments, according to the email.
HHS said it would provide Minnesota with more information by Jan. 5, but the state agency wrote that it鈥檚 unclear what kinds of funding restrictions it faces.
鈥淥ur teams are working hard to analyze the legal, fiscal, and other aspects of this federal action,鈥� the email says. 鈥淲e do not know the full impact.鈥�
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