by WorldTribune Staff / 247 Real News December 31, 2025

All federal payments to childcare businesses in Minnesota have been frozen by the Trump Administration amid growing evidence of massive fraud by Somali-owned daycare centers.

“We’re committed to holding bad actors accountable, regardless of rank or office,” said a X video from Jim O’Neil, deputy secretary at the Department of Health and Human Services (HHS). “Anyone who is involved in perpetrating this fraud against the American people should expect to be prosecuted.”

Alex Abrams, the assistant secretary at the Administration for Children and Families, stated:

“My office, ACF, provides Minnesota $185 million in child care funds each year. That money should be helping 19,000 American children, including toddlers and infants. Any dollars stolen by fraudsters is stolen from those children. Yesterday, I spoke directly with the director of the Minnesota Child Care Services office. She could not tell me with confidence whether those allegations of fraud are isolated or whether there’s fraud stretching statewide.”

O’Neil added:

“Today, we have taken three direct actions against the blatant fraud that seems to be rampant in Minnesota. First, I’ve activated our Defend the Spend [accounting] system for all ACF child-care payments across America. Starting today, we require a justification receipt for photo evidence before we make a payment. Second, I just signed and sent a demand letter to Governor [Tim] Walz. I required a full 360 [degree] review of these centers. This includes attendance records, licenses, complaints, investigations, and inspections.”

The freeze will force the state’s legitimate operators to demand state investigations into the Somali operators.

“The fraud is evidently hidden by the imported, self-serving, clannish Somali culture of ‘amoral familism,’ which is very different from U.S.-style citizenship, which emphasizes reciprocal rights and duties in a shared society,” Breitbart News noted.

Democrats had successfully suppressed public recognition of the mass fraud by their political allies until last week, when independent journalist Nick Shirley posted a series of man-on-the-street videos showing empty childcare centers.

The Minnesota freeze is also intended to pressure other states to check for fraud in their federally funded services — especially within the ethnic enclaves created by long-standing federal policy of mass migration.

White House Press Secretary Karoline Leavitt warned Wednesday that “people will be in handcuffs” as fallout grows from the massive fraud allegations under Minnesota Democrat Gov. Tim Walz’s watch.

“President Trump is not going to let Governor Walz off the hook,” Leavitt told “Fox & Friends,” echoing arguments that responsibility lies with the governor as the alleged fraud occurred under his administration.

Leavitt said the Trump Administration has surged federal resources into Minnesota, with multiple agencies conducting investigations tied to the alleged fraud.

Somali TikToker isn’t upset that members of the Somali community in Minnesota scammed taxpayers, she’s upset that they got caught and are now giving the community bad PR. pic.twitter.com/Ka6lAlYBfy

— I Meme Therefore I Am 🇺🇸 (@ImMeme0) December 30, 2025

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  Trump Administration freezes childcare payments to Minnesota, WorldTribune.com