Minnesota officials have until next week to provide extensive data on child care providers and families receiving federal assistance, or risk losing millions of dollars in funding, amid heightened scrutiny from the Trump administration over alleged fraud.
The Minnesota Department of Children, Youth, and Families (DCYF) confirmed Friday that it has until January 9 to submit information requested by the U.S. Department of Health and Human Services (HHS), following the administration’s announcement that it would freeze federal child care funds nationwide pending additional verification.
The move comes after fraud allegations involving government programs in Minnesota gained national attention, particularly following a viral video posted by a right-wing influencer accusing several child care centers—many operated by Somali residents—of widespread fraud.
However, state officials said recent inspections contradict those claims. According to DCYF, investigators conducted spot checks and reviews at nine child care centers named in the video and found that most were “operating as expected.” One center had not yet opened, while four others remain under active investigation.
“We recognize the alarm and questions this has raised,” DCYF said in an email sent to providers and families on Friday. “We found out about the freezing of funds at the same time everyone else did—on social media.”
The agency added that it did not receive formal federal notice until late Tuesday night, after the freeze had already been publicly discussed online.
Federal Pressure Intensifies
Under the Trump administration’s directive, all 50 states must now submit additional administrative and verification data to continue receiving money from the Child Care and Development Fund, a program designed to help low-income families afford child care.
HHS has requested data covering 2022 to 2025, including identifying information on recipients, lists of all participating providers, payment amounts, and details related to alleged fraud networks and oversight failures. It remains unclear whether Minnesota already possesses all the data being demanded.
An HHS spokesperson said a newly launched fraud hotline has already received more than 200 tips, while the U.S. House Committee on Oversight and Government Reform is scheduled to hold a hearing next week focused on Minnesota’s alleged misuse of federal funds.
Administration for Children and Families Assistant Secretary Alex Adams told U.S. media that Minnesota failed to respond to a federal request for information by a December 26 deadline—an assertion the state has not yet publicly addressed.
Political and Community Fallout
Minnesota Democrats have accused the Trump administration of politicizing the issue and targeting immigrant communities, particularly the state’s large Somali population. President Donald Trump has previously criticized the community and linked Minnesota to broader fraud concerns.
DCYF warned that the spread of unverified claims could have serious consequences.
“Distribution of unvetted or deceptive claims and misuse of tip lines can interfere with investigations, create safety risks, and contribute to harmful discourse about Minnesota’s immigrant communities,” the agency said.
State officials noted that there are 55 active investigations related to child care providers, emphasizing that oversight is ongoing and routine.
Uncertainty for Families and Providers
The funding freeze has created uncertainty for thousands of families and child care centers across the state. According to Minnesota officials, an average of 23,000 children and 12,000 families rely on the affected program each month. The federal government provides about $185 million annually in child care funding to Minnesota.
Maria Snider, director of a St. Paul child care center and vice president of the Minnesota Child Care Association, warned that even short delays could be devastating.
“For a lot of centers, we’re already running on a thin margin,” she said. “Even a 10 to 15 percent loss in income can be critical.”
Providers have been instructed to continue operating under normal licensing and certification rules while state and federal officials work through the dispute. However, DCYF acknowledged that the full impact of the federal action remains unclear.
“Our teams are working hard to analyze the legal, fiscal, and other aspects of this federal action,” the agency said. “We do not know the full impact.”
As the January 9 deadline approaches, Minnesota’s response and the federal government’s next steps—are expected to have significant implications for child care access, funding stability, and political tensions nationwide.
