Texas Governor Orders Probes Into Potential Fraud in Child Care Services

The Lone Star state became the first to order an internal audit in the wake of a federal fraud crackdown in Minnesota.

Texas Gov. Greg Abbott speaks during a news conference in the State Capitol in Austin, Texas, on Aug. 15, 2025. Brandon Bell/Getty Images

Texas on Monday became the first state to order internal fraud investigations into child care services in the wake of a federal fraud crackdown in Minnesota.

Gov. Greg Abbott directed state agencies to launch probes of the state’s social services to uncover any potential funding fraud.

“Such fraud will never be tolerated in Texas,” Abbott said in a statement. “Today, I directed Texas state agencies to take proactive steps to prevent, detect, and eliminate misuse of taxpayer funds to protect the integrity of Texas’ Child Care Services Program.”

Under the directive, the Texas Workforce Commission will work with the Health and Human Services Commission to launch investigations into any potential fraud and misdirection of funding, and implement anti-fraud measures, Abbott’s office said.

The state commissions in charge of the investigation already have anti-fraud processes, such as audits of providers and in-person site visits, in place.

The state claims to have an improper payment rate of 0.43 percent as a result of proactive measures to oversee the programs, according to the governor’s office.

“Schemes like the ones uncovered in Minnesota harm taxpayers as well as other families and children waiting to participate in the Child Care Services Program,” Abbott wrote in a letter to the agencies Monday. “Waste, fraud, and abuse of taxpayer dollars will not be tolerated and will be punished to the fullest extent of the law in Texas.”

The investigation is expected to identify high-risk providers and conduct additional site visits to ensure compliance with laws and regulations.

The probe also calls for verifying the number of children said to be enrolled in the programs.

A final report is expected by Feb. 27.

Meanwhile, thousands of federal immigration agents and officers were expected to launch a massive deployment in the Twin Cities area of Minnesota this week as the fraud scandal continues to widen.

The U.S. Department of Homeland Security and Homeland Secretary Kristi Noem made their presence known Tuesday in the state, posting “Good Morning, Minneapolis!”

Activists confronted a group of Immigration and Customs Enforcement officers in the largely Somali neighborhood of Cedar-Riverside in Minneapolis on Dec. 9, 2025. AP Photo/Mark Vancleave

“We have the largest immigration operation ever taking place right now,” acting ICE Director Todd Lyons told Newsmax on Tuesday.

ICE and Homeland Security agents were going door-to-door at businesses suspected of being involved in illegal hiring and fraud, Lyons said.

President Donald Trump broadened the federal fraud investigation on Tuesday by opening another probe in California.

“The Fraud Investigation of California has begun,” Trump announced on Truth Social.

The federal government has also cut off $10 billion in federal social services and child care funding to five Democrat-led states, the president confirmed.