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Scrutiny over Minnesota fraud increases
Minnesota’s fraud scandal is back in the national spotlight centered around child care assistance programs after allegations of fraud throughout the state. FOX 9’s Soyoung Kim has the latest update.
(FOX 9) - The Trump administration is cracking down following allegations of massive fraud in Minnesota and money stolen from taxpayers.
Federal investigators are stepping in and holding congressional hearings focused on fraud in Minnesota as several child care centers have been under the microscope.
Fraud probe intensifies
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.
This has also prompted a surge of federal officers on the ground in Minnesota investigating fraud allegations.
Since 2013, FOX 9 has been detailing and breaking stories of fraud in Minnesota, where millions of dollars were stolen from government programs.
In 2015, the FOX 9 Investigators uncovered day care fraud, which led to charges and guilty pleas.
In 2018, the FOX 9 Investigators spent more than five months looking into significant fraud in a massive state-run program.
Timeline:
The U.S. House Committee on Oversight and Government Reform will hold a hearing titled, "Oversight of Fraud and Misuse of Federal Funds in Minnesota: Part I," on Jan. 7.
Minnesota Gov. Tim Walz and Attorney General Keith Ellison have been invited to testify before the committee at another hearing scheduled for Feb. 10.
This comes as Minnesota is in the national spotlight and Walz is under ever-increasing criticism for how his administration has handled rampant fraud in state-administered federal programs.
What they're saying:
A spokesperson for Gov. Tim Walz responded in a statement saying: "We’re always happy to work with Congress, though this committee has a track record of holding circus hearings that have nothing to do with the issue at hand."
Extensive fallout impact
Big picture view:
This comes after the U.S Department of Health and Human Services (HHS) announced it has frozen all child care payments to Minnesota amid the ongoing investigation.
"My office, ACF, provides Minnesota with $185 million in child care funds each year," said Alex Adams, Assistant Secretary for the Administration for Children and Families.
By the numbers:
Minnesota’s Child Care Assistance Program (CCAP) is meant to help low-income families with child care costs so parents can work.
According to the Minnesota Department of Children, Youth, and Families (DCYF) in 2024, roughly 20,000 children were served during an average month. The program cost $306.6 million in 2024.
According to state legislative research, over 3,000 providers are enrolled in the program.
The Source: Minnesota Department of Children, Youth, and Families (DCYF), House Committee on Oversight and Government Reform, Office of Governor Tim Walz, U.S Department of Health and Human Services (HHS), previous FOX 9 reporting.