HHS freezes child care payments to Minnesota amid fraud probe

HHS Assistant Secretary Jim O’Neill in a YouTube announcement. (HHSTV1 by way of YouTube)

The U.S. Division of Well being and Human Providers will freeze all little one care funds to Minnesota, the company stated Tuesday, amid the investigation surrounding alleged fraud involving day care facilities throughout the state.

“You’ve most likely learn the intense allegations that the State of Minnesota has funneled tens of millions of taxpayer {dollars} to fraudulent daycare facilities throughout Minnesota over the previous decade,” HHS Assistant Secretary Jim O’Neill wrote on X.

In a video message, O’Neill cited the viral video launched final week by impartial journalist Nick Shirley highlighting alleged fraud at little one care and studying facilities in Minnesota.

‘NO WAY’ WALZ ADMINISTRATION WAS NOT AWARE OF MINNESOTA FRAUD SCANDAL, EMMER SAYS

Minnesota’s High quality Studying Middle discovered itself on the middle of an alleged little one care fraud scandal within the state. (Fox Information)

Within the video, most of the services appeared non-operational, regardless of reportedly receiving tens of millions of {dollars} in authorities support.

“We imagine that the state of Minnesota has allowed scammers and bogus daycares to siphon off tens of millions of taxpayer {dollars} over the previous decade,” he stated.

In an effort to fight fraud, O’Neill stated he ordered that each one Administration for Kids and Households funds made nationwide require justification and receipt or picture proof earlier than sending cash to a particular state.

Second, the company is demanding that Minnesota Governor Tim Walz present a complete audit of the facilities featured in Shirley’s video, together with attendance data, licensing, complaints, investigations and inspections.

FEDS LAUNCHES ‘MASSIVE’ INVESTIGATION AFTER VIRAL VIDEO CLAIMS MINNESOTA DAYCARE FRAUD

HHS Assistant Secretary Jim O’Neill in a YouTube announcement. (HHSTV1 by way of YouTube)

As well as, HHS has launched a hotline to report fraud.

A spokesperson for Walz’s workplace instructed Fox Information Digital that the HHS transfer was politically motivated.

“The governor has been preventing fraud for years, whereas the president is letting fraudsters out of jail,” the spokesperson stated in an announcement. “Fraud is a severe difficulty. However it is a clear try to politicize the problem to hurt Minnesotans and discourage authorities packages that assist folks.”

In a publish on X, Walz stated the transfer was a part of President Donald Trump’s “lengthy recreation.”

“We’ve got been cracking down on fraudsters for years. It is a severe difficulty, however this has been his plan all alongside,” he wrote. “He’s politicizing the problem to defund packages that assist Minnesotans.”

Alex Adams, the assistant secretary of the HHS Administration for Kids and Households, stated his workplace has offered Minnesota with $185 million yearly in youngsters’s funds.

“That cash ought to assist 19,000 American youngsters, together with toddlers and infants. All {dollars} stolen by fraudsters are stolen from these youngsters,” Adams stated.

Adams stated he spoke with the top of the Minnesota Youngster Care Providers workplace on Monday.

Unbiased journalist Nick Shirley’s video concerning the daycare facilities went viral. (Fox Information)

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“She couldn’t inform me with certainty whether or not these allegations of fraud are remoted or whether or not there’s a fraud that extends throughout the state,” he stated.