US Halts Minnesota Childcare Funding
This decision followed claims that, over the past ten years, Minnesota redirected millions of taxpayer dollars to daycare facilities engaged in fraudulent practices.
“We have frozen all child care payments to the state of Minnesota,” O’Neill declared in a statement on X, while detailing three further measures introduced to confront the suspected misconduct.
O’Neill explained that he had initiated the “Defend the Spend” mechanism for all Administration for Children and Families (ACF) transactions, which now requires evidence and confirmation of receipt before any money is released.
He additionally called for a thorough audit from Minnesota Governor Tim Walz, demanding documentation such as attendance logs, licenses, complaints, investigations, and inspections of the childcare centers under scrutiny. A specialized hotline for reporting fraud has also been established.
ACF Assistant Secretary Alex Adams emphasized that his department allocates $185 million annually to Minnesota for childcare, aimed at supporting nearly 19,000 American children.
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