Minnesota child care providers are searching for answers about how a sudden freeze in federal assistance announced by the Trump administration will affect their services and families.
The U.S. Department of Health and Human Services instituted the payment pause for child care assistance grants to Minnesota as a response to yet-proven claims of fraud by some providers. The furor was stirred by a YouTube creator who visited sites run by Somali Minnesotans in Minneapolis, alleging that they are improperly billing the government for care reimbursements.
State officials say they are looking into the allegations but so far haven’t substantiated the fraud claims.
Clare Sanford, government relations chair and a board member for the Minnesota Child Care Association, said there are many unanswered questions about how the payment halt will go. She said it’s possible that the federal action will have implications for providers beyond those from families that qualify for the Child Care Assistance Program, sometimes referred to as CCAP.
“We do know the immediate effects for those 30,000 children. But beyond that, we’re not sure because we’re not sure if the other things funded by the grant, like licensing, will also be affected,” Sanford told Morning Edition host Cathy Wurzer.
Sanford said she has been searching for answers since the halt was announced. Still unclear is whether Minnesota has already received its allocation for January provider payments. While the families are the ones who register and qualify for the county- and state-administered program, money flows to care centers.
Worries of harassment, cameras, strangers showing up at care centers
Sanford said the week has been unsettling for care providers around Minnesota, some of which are getting harassing phone calls and others that worry about unannounced visitors trying to videotape children inside care settings.
“When people are showing up at programs, that can be perceived in a menacing way. They’re unidentified. They want to videotape things that are going on,” Sanford said. “That is very unsettling for providers whose first job is to protect children and follow the rules to do that.”
The federal action follows a pattern by the Trump administration to take a broad action without offering much information about the process. The child care pause was announced Tuesday evening in a social media post by top federal agency officials, who cited the unverified YouTube video as the cause.
Jim O’Neill, a deputy secretary at HHS, said the child care payments won’t go out without “a justification and a receipt or photo evidence.” He said he sent a demand letter to Minnesota Gov. Tim Walz seeking data on providers and the reimbursements they have received. A nationwide fraud-reporting hotline was also established at the department.
“We have turned off the money spigot and we are finding the fraud,” the post on X read.
State Rep. Nolan West, R-Blaine, wrote to Department of Children, Youth and Families seeking a series of documents that shed light on what he called “a pattern of suspicious childcare center activities.”
“The department should prioritize maximum transparency with the public,” West wrote. “Failing to do so undermines public trust at a critical time.”
State Sen. Liz Boldon, DFL-Rochester, said Republicans risk disrupting child care in Minnesota.
“Stripping daycare access to tens of thousands of Minnesota families is an act of pure cruelty,” Boldon said Wednesday. “It also risks destabilizing the entire industry, not to mention local economies and bankrupting family budgets.”
A group of Democratic Minnesota lawmakers and child care providers planned a state Capitol news conference for later Wednesday to respond. MPR News has asked the Minnesota attorney general’s office about potential legal intervention, but has yet to hear back.