HHS freezes all youngster care funds amid ongoing widespread fraud allegations – One America Information Community

[ad_1] <img decoding="async" width="800" height="533" src="https://www.oann.com/wp-content/uploads/2025/12/Screenshot-2025-12-30-174111.png" alt="Jim O'Neill and Alex J. Adams via screenshot" class="wp-image-750081" srcset="https://www.oann.com/wp-content/uploads/2025/12/Screenshot-2025-12-30-174111.png 800w, https://www.oann.com/wp-content/uploads/2025/12/Screenshot-2025-12-30-174111-400x267.png 400w, https://www.oann.com/wp-content/uploads/2025/12/Screenshot-2025-12-30-174111-768x512.png 768w" sizes="(max-width: 800px) 100vw, 800px"/> Jim O’Neill and Alex J. Adams through screenshot

OAN Workers Sophia Flores6:58 PM – Tuesday, December 30, 2025

The U.S. Division of Well being and Human Companies (HHS) has formally frozen all federal youngster care funds to the state of Minnesota. The choice follows a sequence of widespread fraud investigations and allegations concerning thousands and thousands in taxpayer funds being funneled to non-operational or fraudulent day care facilities.

On Tuesday, HHS Deputy Secretary Jim O’Neill revealed that every one youngster care funds to the North Star State have been frozen, including that the company has to date “taken three actions” in relation to the matter.

“You could have most likely learn the intense allegations that the state of Minnesota has funneled thousands and thousands of taxpayer {dollars} to fraudulent daycares throughout Minnesota over the previous decade,” O’Neill wrote on X.

“At this time we now have taken three actions towards the blatant fraud that seems to be rampant in Minnesota and throughout the nation,” he continued, earlier than sharing a video.

Now we have frozen all youngster care funds to the state of Minnesota.

You could have most likely learn the intense allegations that the state of Minnesota has funneled thousands and thousands of taxpayer {dollars} to fraudulent daycares throughout Minnesota over the previous decade.

At this time we now have taken three actions… pic.twitter.com/VYbyf3WGop

— Deputy Secretary Jim O'Neill (@HHS_Jim) December 30, 2025

O’Neill went on to focus on three actions the division has taken to be able to stop to stream of exploitable funds.

I've activated our defend the spend system for all ACF funds. Beginning as we speak, all ACF funds throughout America would require a justification and a receipt or picture proof earlier than we ship cash to a state.

Alex Adams and I've recognized the people in @nickshirleyy‘s glorious work. I've demanded from @GovTimWalz a complete audit of those facilities. This contains attendance information, licenses, complaints, investigations, and inspections.

Now we have launched a devoted fraud-reporting hotline and e mail tackle at Whether or not you're a guardian, supplier, or member of most people, we need to hear from you.

Following an expose by impartial journalist Nick Shirley, Division of Homeland Safety (DHS) Secretary Kristi Noem additionally deployed federal brokers to Minneapolis on Monday to analyze the large-scale childcare fraud.

Shirley’s reporting centered on quite a few Somali-owned facilities that had collected thousands and thousands in public cash, however gave the impression to be solely vacant or shut down.

Noem’s announcement of a “large investigation” marked the primary escalation in response to ongoing claims that Minnesota taxpayer funds have been being disbursed to immigrant-owned companies that existed largely on paper.