HHS Freezes Childcare Funding to Minnesota Amid Fraud Investigations12/31/2025The Department of Health and Human Services announced that it’s freezing child care funds to Minnesota after a series of fraud schemes. Deputy Health Secretary Jim O’Neill said he’s also demanded an audit from Minnesota Governor Tim Walz of the day care centers. O’Neill referenced independent journalist Nick Shirley’s report about allegations of fraudulent Somali-owned day care centers that totaled up to $110 million in fraud. The announcement comes one day after federal agents were investigating in Minneapolis.