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HHS says it’s freezing child care payments to Minnesota after fraud allegations

An HHS official says the agency has “frozen all child care payments” to the state of Minnesota after allegations of fraudulent day care centers there. 

​An HHS official says the agency has “frozen all child care payments” to the state of Minnesota after allegations of fraudulent day care centers there.    

HHS also said it’s tightening requirements for other payments.

ByABC NEWS

December 30, 2025, 8:03 PM

An official with the Department of Health and Human Services says the agency has “frozen all child care payments” to the state of Minnesota after allegations of fraudulent day care centers there. 

In addition, HHS is tightening requirements for payments from the Administration for Children and Families to all states, requiring a justification and a receipt or photo evidence, Deputy HHS Secretary Jim O’Neill said in a post on social media Tuesday. 

The move comes after an unverified online video from conservative influencer Nick Shirley alleging fraud in child care in Somali communities in Minneapolis. Minnesota officials had disputed the allegations. 

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