"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 a right-wing influencer 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 Trump administration froze childcare funds to Minnesota and demanded audits of certain day care centers after alleged fraud schemes. Deputy HHS Secretary Jim O'Neill cited 'blatant fraud' and requested audits including attendance records, licenses, complaints, investigations and inspections. Gov. Tim Walz acknowledged fraud enforcement but called the action politicized and part of 'Trump's long game.' Homeland Security agents conducted fraud investigations in Minneapolis. Past prosecutions involved a $300 million pandemic food fraud linked to Feeding Our Future and convictions of 57 defendants. A federal prosecutor alleged that half or more of roughly $18 billion in federal funds for 14 Minnesota programs since 2018 may have been stolen.
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