HHS Pauses Funding for Child Care in Minnesota as Fraud Allegations Grow

The Trump administration has ‘turned off the money spigot’ as it uncovers alleged fraud, HHS Deputy Secretary Jim O’Neill said.

The headquarters of the US Department of Health and Human Services in Washington on Nov. 18, 2024. ROBERTO SCHMIDT/AFP via Getty Images

The Department of Health and Human Services announced Tuesday that it is halting all funding for child care to Minnesota as federal investigations into alleged systemwide fraud continue to grow this week.

“We have frozen all child care payments to the state of Minnesota,” HHS Deputy Secretary Jim O’Neill wrote on X. “We have turned off the money spigot and we are finding the fraud.”