Summary
The U.S. Department of Health and Human Services (HHS) has halted child care funding for Minnesota due to fraud investigations related to daycare operations in Minneapolis. Over 90 individuals face charges, with significant taxpayer money reportedly involved. State and federal officials continue to investigate the extent of the fraud and have implemented measures to address the issue.
Key Facts
- The Department of Health and Human Services stopped child care funding to Minnesota amid fraud allegations.
- HHS Deputy Secretary Jim O'Neill outlined three actions to tackle the alleged fraud.
- Measures include verifying payment receipts and photos before states get funds, requiring an audit by Governor Walz's office, and setting up a fraud hotline.
- Over 60 convictions have occurred with more than 90 individuals charged in Minnesota.
- The alleged fraud may involve $250 million to $1 billion in taxpayer funds, according to estimates.
- Federal prosecutors mentioned that $9 billion might have been misused in 14 state-run programs since 2018.
- Many suspects are part of Minnesota's Somali immigrant community.
- The investigation by both state and federal authorities is ongoing.
