At a Glance
- HHS freezes all federal child-care payments to Minnesota after a viral video alleges widespread fraud.
- A video shows non-operational child-care facilities still receiving state and federal funds.
- The FBI has increased resources to investigate, focusing on the Somali community.
- Why it matters: The move cuts funding for child-care providers and signals a crackdown on fraud in federally supported programs.
The U.S. Department of Health and Human Services announced on Tuesday that it would halt all federal child-care payments to Minnesota after a viral video surfaced, alleging widespread fraud at child-care facilities. The decision comes as the FBI has stepped up its investigation, focusing on claims involving Somali immigrants. The freeze could affect many providers and families who rely on state and federal support.
HHS Halts Payments
The agency released a statement and posted a video on X in which Deputy Secretary Jim O’Neill and Assistant Secretary Alex Adams said the payments were stopped and new requirements were imposed nationwide.
Deputy Secretary Jim O’Neill stated:
> “We have halted all payments to Minnesota and implemented additional requirements for child-care payments nationwide.”
Assistant Secretary Alex Adams added:
> “This action is part of our commitment to ensuring funds reach legitimate providers.”
The freeze was triggered by a video that appeared to show child-care centers that were not operational yet were still receiving funds.
- Freeze all federal child-care payments to Minnesota
- Implement additional requirements for child-care payments nationwide
- FBI increased resources to investigate fraud
FBI Investigation Focuses on Somali Community
FBI Director Kash Patel said the bureau had “surged” resources to Minnesota to investigate widespread fraud claims before the video went viral.
FBI Director Kash Patel remarked:
> “We have surged resources to Minnesota to investigate claims of widespread fraud.”
The investigation has largely targeted Somali immigrants in Minnesota, following years of federal probes into fraud involving the community.
- FBI surged resources to Minnesota
- Targeting the Somali community
- Investigation began before the video went viral
Justice Department’s Long-Running Probe
The Justice Department has been investigating fraud involving members of Minnesota’s Somali community for years. In 2022, prosecutors announced indictments in a $250 million scheme to defraud a federally funded child nutrition program. As of November, 77 people had been charged, and Aimee Bock was identified as the mastermind; she was convicted in March.
- $250 million scheme to defraud a federally funded child nutrition program
- 77 people charged as of November
- Aimee Bock identified as mastermind and convicted in March
Key Takeaways
- HHS has frozen all federal child-care payments to Minnesota.
- The FBI is intensifying its investigation, focusing on the Somali community.
- The Justice Department has charged 77 people in a $250 million fraud scheme, with Aimee Bock convicted.
The freeze and intensified investigations underscore the federal government’s commitment to curbing fraud in child-care and nutrition programs, with significant implications for providers and the communities they serve.
