Court extends federal funding freeze block to Minnesota child care programs

MN faces possible federal funding freeze over fraud

A judge sided with the State of Minnesota to block the federal government's effort to freeze child care funds, but the lawsuit is still ongoing. FOX 9's Soyoung Kim has the latest details. 

MINNESOTA (FOX 9) - The Trump administration announced it would be halting federal funds to review program integrity of child care assistance in five states, including Minnesota.

In the latest development in the lawsuit the states filed, a federal judge granted a motion to block the funding freeze, for now.

Funding crackdown

The backstory:

A viral video published in December thrust Minnesota child care centers back into the spotlight as the state is facing allegations of widespread fraud in government programs.

Minnesota and a coalition of four other states have been in a legal battle with the federal government over access to federal funding for child care and family assistance programs.

Legal battle

Timeline:

The U.S. Department of Health and Human Services (HHS) had threatened in late December to freeze access to funding. Then in early January, specifying a total amount of roughly $10 billion impacting programs in five states, including Minnesota.

Federal officials cited allegations of fraud in Minnesota as a reason why they are cutting off funding. HHS’s Administration for Children and Families (ACF) requested the states submit proof of legitimate spending.

Within days, Minnesota Attorney General Ketih Ellison joined a coalition of four other attorneys general and sued the Trump administration to block this freeze.

On Jan. 9, a temporary restraining order was granted, and a judge initially allowed that money to keep flowing.

Friday, a district court judge granted a motion for a preliminary injunction, continuing to block the funding freeze for now.

What they're saying:

"We believe the state of Minnesota has allowed scammers and fake day cares to siphon millions of taxpayer dollars over the past decade," said HHS Deputy Secretary Jim O'Neill in a recorded statement about alleged fraud in Minnesota programs.

"This is a tremendous relief for parents across Minnesota, as these cuts would have devastated our childcare system and forced low-income families to choose between going to work to pay the bills and staying home to provide childcare."

The Minnesota Department of Children, Youth and Families (DCYF) said this latest ruling protects access to hundreds of millions of dollars of critical services across the state.

What's next:

The lawsuit will move forward based on the merits of the case.