Trump Expands Child Care Funding Freeze Beyond Minnesota
The Trump administration is widening a federal freeze on child care funding beyond Minnesota as the U.S. Department of Health and Human Services (HHS) ramps up a nationwide review aimed at rooting out fraud.
Deputy HHS Secretary Jim O’Neill announced Tuesday that the agency froze all federal child care payments to Minnesota as officials investigate allegations of widespread fraud in the state’s subsidy system. The funding freeze will extend to other states as federal officials review how taxpayer dollars are used, according to multiple reports.
“HHS has a clear duty to verify the proper use of taxpayer funds,” spokesman Andrew Nixon said in a statement, as reported by the New York Post. “The documentation process exists to rule out fraud and confirm that funds are supporting legitimate child care providers.
Minnesota Gov. Tim Walz pushed back after the Trump administration moved to freeze federal child care funding in the state, accusing the White House of using fraud concerns to justify the action.
This is Trump’s long game.
We’ve spent years cracking down on fraudsters. It’s a serious issue – but this has been his plan all along.
He’s politicizing the issue to defund programs that help Minnesotans. https://t.co/7ByWjeXxu0
— Governor Tim Walz (@GovTimWalz) December 31, 2025
“This is Trump’s long game. We’ve spent years cracking down on fraudsters. It’s a serious issue – but this has been his plan all along. He’s politicizing the issue to defund programs that help Minnesotans,” Walz wrote.
President Donald Trump said that investigators expect to uncover large-scale abuse elsewhere, including in California. (Read more from “Trump Expands Child Care Funding Freeze Beyond Minnesota” HERE)










