Posted originally on CTH on December 31, 2025 | Sundance 

The federal dept of Health and Human Services has announced the suspension of all childcare service payments to the state of Minnesota, pending investigative review and compliance audits.

The announcement follows several grassroots reports showing extensive fraud and corruption stemming mostly from the Somali immigrant community.  Several taxpayer-funded assistance programs have been exploited. From daycares to nonprofits, immigrant communities in Minnesota now face multiple accusations of fraud, where they allegedly used state policies to take what some estimate to be about $9 billion in taxpayer dollars.

There are numerous indications the Minnesota fraud is only the tip of the iceberg.  Several states with large migrant population are also suspected of similar activity.  The Dept of Homeland Security, Federal Bureau of Investigation and HHS are now doing compliance audits to determine the scale and scope of the overall theft.

(VIA FOX NEWS) – The U.S. Department of Health and Human Services will freeze all child care payments to Minnesota, the agency said Tuesday, amid the scrutiny surrounding alleged fraud involving child daycare centers across the state.

“You have probably read the serious allegations that the state of Minnesota has funneled millions of taxpayer dollars to fraudulent daycares across Minnesota over the past decade,” HHS Deputy Secretary Jim O’Neill wrote on X. 

In a video message, O’Neill cited the viral video released last week by independent journalist Nick Shirley that highlighted alleged fraud involving Minnesota childcare and learning centers. 

[…]  In an effort to combat fraud, O’Neill said he ordered that all Administration for Children and Families payments made across the country require justification and receipt or photo evidence before money is sent to a particular state. 

Secondly, the agency is demanding that Minnesota Gov. Tim Walz hand over a comprehensive audit of the centers featured in Shirley’s video, including attendance records, licenses, complaints, investigations and inspections. (read more)