Key Insights on the Trump Administration’s Halt on Federal Child Care Funding

This suspension, initiated by the Trump administration, demands states to enhance their verification processes for child care programs. The move comes in response to a series of fraud incidents linked to day care centers in Minnesota, predominantly managed by the Somali community.

While the review encompasses all 50 states, the Republican administration has turned a particular focus on Minnesota, a Democratic stronghold, urging an in-depth audit of certain facilities.

Reacting to the development, Minnesota’s Democratic Attorney General, Keith Ellison, expressed his concerns on Wednesday. He emphasized that he is “exploring all our legal options to ensure that vital childcare services are not abruptly cut off based on pretext and grandstanding.”

The scope of the additional verification measures required from states remains uncertain at this point.

In a social media announcement on Tuesday, Deputy Secretary of Health and Human Services, Jim O’Neill, justified the decision as a response to “blatant fraud that appears to be rampant in Minnesota and across the country.”

Here are some things to know about these moves:

All 50 states will have to provide additional levels of verification and administrative data before they receive more funding from the Child Care and Development Fund, according to a U.S. Department of Health and Human Services spokesperson. However, Minnesota will have to provide even more verification for child care centers that are suspected of fraud, such as attendance and licensing records, past enforcement actions and inspection reports.

In his social media post on Tuesday, O’Neill said all Administration for Children and Families payments nationwide would require “justification and a receipt or photo evidence” before money is sent, but the HHS spokesperson said Wednesday that the additional verifications only apply to CCDF payments.

Minnesota Gov. Tim Walz, the 2024 Democratic vice presidential nominee, said in a social media post that fraudsters are a serious issue that the state has spent years cracking down on but that this is a political move that is part of “Trump’s long game.”

State Senate Majority Leader Erin Murphy condemned the move in a statement Wednesday.

“Republicans are playing sick games and winning devastating prizes,” Murphy said. “And now, tens of thousands of Minnesota families will pay the price as Donald’s Trump’s agents strip away crucial funding.”

The administration launched efforts in recent weeks to track down fraud in other programs in Minnesota and is looking at fraud in blue states such as California and New York, White House Press Secretary Karoline Leavitt said in an interview with “Fox & Friends” on Wednesday.

The administration will continue to send officers to investigate “potential fraud sites” in Minnesota and deport undocumented immigrants, Leavitt said, adding that the Department of Homeland Security is considering plans to denaturalize citizens.

The Department of Labor is also investigating the state’s unemployment insurance program, Leavitt said. The administration this month threatened to withhold SNAP food aid funding from Democratic-controlled states, including Minnesota, unless they provide information about people receiving assistance.

The announcement came a day after U.S. Homeland Security officials conducted a fraud investigation in Minneapolis, questioning workers at unidentified businesses. Trump has criticized Walz’s administration over the cases, capitalizing on them to target the Somali diaspora in the state, which has the largest Somali population in the U.S.

In his post Tuesday, O’Neill, who is serving as acting director of the Centers for Disease Control and Prevention, referenced a right-wing influencer who posted a video last week claiming he found that day care centers operated by Somali residents in Minneapolis had committed up to $100 million in fraud.

Meanwhile, there are concerns about harassment that home-based day care providers and members of the Somali community nationwide might face amid the vitriol, including Trump’s comments earlier this month referring to Somali immigrants as “garbage.” Washington state Attorney General Nick Brown released a statement saying, “Showing up on someone’s porch, threatening, or harassing them isn’t an investigation. Neither is filming minors who may be in the home.”

Maria Snider, director of the Rainbow Child Development Center and vice president of advocacy group Minnesota Child Care Association, said fear is rising among both families — many of which are living paycheck to paycheck — and child care centers that rely on the federal funding. Without child care system tuition, centers may have to lay off teachers and shut down classrooms, she said.

The Administration for Children and Families provides $185 million in child care funds annually to Minnesota, according to Assistant Secretary Alex Adams.

In Minnesota, the application process for the funding is complex and multilayered, Snider said. Her own child care center has been subjected to random audits, she said, and all centers are required to submit to licensing visits by officials.

“I don’t know what else I would provide,” she said.

Ahmed Hasan, director of the ABC Learning Center that was one of those featured in the video by the right-wing influencer, said on Wednesday that there were 56 children enrolled at the center. Since the video was posted, Hasan, who is Somali, said his center has received harassing phone calls making staff members and parents feel unsafe.

He said the center is routinely subject to checks by state regulators to ensure they remain in compliance with their license.

“There’s no fraud happening here,” Hasan told The Associated Press. “We are open every day, and we have our records to show that this place is open.”

Kramon reported from Atlanta and Brumfield reported from Cockeysville, Maryland. AP Videojournalist Mark Vancleave contributed from Minneapolis, Minnesota, and AP Writer Margery Beck contributed from Omaha, Nebraska.