Trump administration says it's freezing child care funds to Minnesota after series of fraud schemes

"President Donald Trump's administration announced on Tuesday that it's freezing child care funds to Minnesota after a series of fraud schemes in recent years. Acting director of the Centers for Disease Control and Prevention Jim O'Neill announced on the social platform X that the step is in response to blatant fraud that appears to be rampant in Minnesota and across the country. We have turned off the money spigot and we are finding the fraud, he said."

"The announcement comes after years of investigation that began with the $300 million scheme at the nonprofit Feeding Our Future, for which 57 defendants in Minnesota have been convicted. Prosecutors said the organization was at the center of the country's largest COVID-19-related fraud scam, when defendants exploited a state-run, federally funded program intended to provide food for children."

The Trump administration froze child care funds to Minnesota amid allegations of widespread fraud in federally funded programs. Acting CDC director Jim O'Neill said on X that federal payments were halted while investigators pursue blatant fraud. Investigations began with a $300 million scheme at the nonprofit Feeding Our Future, resulting in convictions of 57 defendants. Prosecutors say the nonprofit was central to the nation's largest COVID-19-related fraud, exploiting a state-run, federally funded food program for children. A federal prosecutor alleged that half or more of roughly $18 billion supporting 14 Minnesota programs since 2018 may have been stolen. Gov. Tim Walz pledged aggressive action and an audit due by late January. Rep. Ilhan Omar urged against blaming an entire community for the actions of a few.

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