The Department of Health and Human Services said Tuesday that it is freezing all federal child care payments to the state of Minnesota in the wake of a viral video that alleged widespread fraud at child care facilities across the state.
In a statement and accompanying video on X, Deputy Secretary Jim O’Neill and Assistant Secretary Alex Adams said they had halted all payments to Minnesota and implemented additional requirements for child care payments nationwide.
Gov. Tim Walz’s office did not immediately respond to a request for comment. HHS did not immediately respond to an inquiry about exactly how much money is being frozen.
The announcement comes days after FBI Director Kash Patel said the bureau had “surged” resources to Minnesota to investigate claims of widespread fraud, insisting those steps were taken before a right-wing influencer’s video went viral for purporting to show child care facilities that weren’t operational but were receiving state and federal funds.
The FBI’s fraud investigation has largely targeted Somali immigrants in Minnesota.
The Justice Department has been investigating fraud involving some members of Minnesota’s Somali community for years. Federal prosecutors in 2022 — under the Biden administration — announced initial indictments in what they said was a $250 million scheme to defraud a federally funded child nutrition program.
As of November, prosecutors had charged 77 people, and they described Aimee Bock, who is white, as the mastermind of the operation. A jury convicted Bock in March.
This is a developing story. Please check back for updates.
Corky Siemaszko contributed.
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