WASHINGTON, DC- The magic money machine is no longer operational, at least where it concerns Minnesota. In a sharp contrast to the Autopen (Biden) administration, the Trump administration is cutting off all childcare payments to Minnesota until the state can prove it has gotten widespread fraud under control, The New York Post reports. In other words, the adults are back in charge.
“We have frozen all child care payments to the state of Minnesota,” Deputy Health and Human Services Secretary Jim O’Neil wrote on Tuesday in a post on X. The administration’s move came days after independent journalist influencer Nick Shirley posted a viral video on YouTube showing rampant fraud at day cares in the state of Minnesota, which drew widespread attention.
In 2025, the state of Minnesota received $185 million in childcare payments from the Trump administration, according to Alex Adams, assistant secretary of HHS’ Administration for Children and Families.
Addressing the aid freeze, O’Neil said the “funds will be released only when states prove they are being spent legitimately.”
According to O’Neil, the “Land of 10,000 Lakes” has “funneled millions of taxpayer dollars to fraudulent daycares across Minnesota over the past decade,” while outlining three actions the department has taken to cut off the funds.
First, HHS will require “a receipt or photo evidence” for any payments made to states through the US Administration for Children & Families (ACF).
O’Neil has “demanded” a “comprehensive audit” of the highlighted centers, addressed to Minnesota Gov. Tim Walz (D).
“This includes attendance records, licenses, complaints, investigations, and inspections,” he wrote.
O’Neil addressed Shirley’s video specifically, which showed him visiting daycares across Minneapolis that received millions in state funds, apparently closed or otherwise out of operation.
Finally, HHS has launched a hotline and email address for the purposes of reporting fraud at childcare.gov.
“Whether you are a parent, provider, or member of the general public, we want to hear from you,” O’Neil wrote. “We have turned off the money spigot, and we are finding the fraud.”
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