Deputy Secretary of Health and Human Services Jim O’Neill said on the social platform X that the move is in response to “blatant fraud that appears to be rampant in Minnesota and across the country.”
Minnesota Gov. Tim Walz pushed back on X, saying fraudsters are a serious issue that the state has spent years cracking down on but that this move is part of “Trump’s long game.”
O'Neill referenced an independent journalist who posted a video Friday claiming he found that day care centers operated by Somali residents in Minneapolis had committed up to $100 million in fraud. O’Neill said he has demanded Walz submit an audit of these centers that includes attendance records, licenses, complaints, investigations and inspections.
“We have turned off the money spigot and we are finding the fraud,” O’Neill said.
The announcement comes one day after U.S. Homeland Security officials were in Minneapolis conducting a fraud investigation by going to unidentified businesses and questioning workers.
There have been years of investigations that included a $300 million pandemic food fraud scheme revolving around the nonprofit.
The Administration for Children and Families provides $185 million in child care funds annually to Minnesota, according to Assistant Secretary Alex Adams.
“That money should be helping 19,000 American children, including toddlers and infants," he said in a video posted on X. "Any dollar stolen by fraudsters is stolen from those children.”
Adams said he spoke Monday with the director of Minnesota's child care services office and she wasn't able to say "with confidence whether those allegations of fraud are isolated or whether there’s fraud stretching statewide.”
