Minnesota child care operators say federal funding freeze ‘devastating’
Trump admin freezes federal child care funds
One day after the Trump administration announced it would freeze federal funding for child care programs in Minnesota as it investigated potential fraud, Minnesota’s political leaders and community spoke out about the decision that could affect thousands.
ST. PAUL, Minn. (FOX 9) - In 2025, Minnesota received about $185 million in federal child care assistance, according to the Department of Health and Human Services (HHS). The funds support around 4,000 child care centers and 30,000 families.
But after a single 42-minute video by a conservative YouTube personality alleging widespread fraud, highlighting Somali-run centers, HHS announced all payments to Minnesota are now frozen.
Meanwhile, no state nationwide will be reimbursed without meeting new stringent requirements and verification.
Uncertain funding future
What we know:
On Wednesday afternoon, Minnesota child care operators, families and advocates gathered at the state capitol to say this could be devastating.
"Fraud is never acceptable," said Amanda Schillinger, director of a child care center in Burnsville. "But cutting off childcare funding to everyone in the state is not the answer and it is not acceptable."
Schillinger says 75% of the families enrolled in her center receive government assistance. If they lose coverage, her center is in jeopardy.
"We can’t afford to continue operating if we lose 75% of our enrollment," said Schillinger. "Without child care assistance funding, our center will close within a month."
Fear for families
What they're saying:
Maria Snider, who runs a child care center in St. Paul, opened by her mother decades ago, agrees that fraud in state programs must be more vigorously prevented and investigated.
But she says that random audits are already fairly firm and demanding.
"Imagine my surprise that it’s so easy to scam child care assistance," Snider said.
She also fears how the funding freeze may play out, saying the new federal requirements remain unclear. And if families lose coverage, they can’t go to work.
"Many of the families at my center are one paycheck away from becoming homeless. I’m not exaggerating," she says.
Pushing back
What's next:
Minnesota Attorney General Keith Ellison released a statement on Wednesday saying that his office is "exploring all of our legal options to ensure that critical childcare services do not get abruptly slashed based on pretext and grandstanding."
Minnesota Rep. Carly Kotyza-Witthun, who co-chairs the House Children and Families Committee, said the legislature absolutely must create better safeguards for state programs, both in prevention and investigation.
But she said the fallout from a YouTube video, which the Minnesota GOP said they helped create, shouldn’t be a broad brush against all child care centers.
"Fraud prevention is about policy and not politics. It’s about Solutions and not spectacle," she said. "But everything we’ve seen from the federal government this week is about politics."