The Trump administration's announcement on Tuesday includes a suspension of child care funding in Minnesota and an audit demand for various day care centers due to allegations of widespread fraud involving welfare programs.
Deputy Secretary of Health and Human Services, Jim O'Neill, stated that this freezing of funds is a reaction to what he describes as blatant fraud visible across Minnesota and the nation. He emphasized the need for scrutiny following claims made by right-wing influencers alleging that day care centers operated by Somali residents are implicated in fraud schemes totaling up to $100 million.
Minnesota Governor Tim Walz criticized this federal action via social media, asserting that the state has dedicated years to addressing fraud and views the administration's maneuver as a political strategy to undermine essential services which assist Minnesotans. “This is part of Trump’s long game to defund critical programs,” he stated.
O’Neill’s remarks referenced a conservative media outlet's coverage that accused Somali-operated day care centers in Minneapolis of fraud. He has insisted on an audit from Governor Walz, including thorough records relating to attendance, licenses, and investigations of the facilities.
Furthermore, O’Neill declared, We have turned off the money spigot and we are actively pursuing the fraud investigation. This measure is further reinforced as the Department of Health and Human Services announces stricter disbursal protocols that will now require documentation for payments.
This federal directive emerges just one day after officials from Homeland Security conducted a surprise investigation in Minneapolis, interrogating employees at various businesses during their probe into alleged fraudulent activities.
Notably, recent history in Minnesota has been marred by a $300 million scheme revolving around a nonprofit organization called Feeding Our Future, which involved extensive embezzlement during the pandemic. Prosecutors indicate that 57 defendants have faced charges connected to this organization, indicating a higher level of scrutiny on welfare allocations.
Earlier investigations led to claims from a federal prosecutor suggesting that as much as half of the approximately $18 billion funnelled into 14 Minnesota programs since 2018 may have fallen into corrupt hands. Many defendants in these recent welfare fraud schemes are identified as Somali Americans.
O'Neill, who is also acting as the director of the CDC, announced a new fraud-reporting hotline and stressed the importance of directing money intended for 19,000 children accurately: Any dollar stolen by fraudsters is money taken from these kids. The state government acknowledges some uncertainty regarding whether the fraud claims are isolated or widespread.
President Trump’s criticism of Walz’s administration has intensified during this controversy, leveraging it to confront the state’s significant Somali population, the largest in the U.S. Governor Walz has pointed to an upcoming audit due by late January to clarify the scope of the allegations and asserted that the state is undertaking robust measures to prevent further fraud incidents.
Democratic Congresswoman Ilhan Omar has voiced her concerns, urging the public not to associate the entire Somali community with the actions of a few individuals accused of wrongdoing.
