U.S. HHS Deputy Secretary says all child care payments to Minnesota have been frozen

FOX 9 Minneapolis-St. Paul covers remarks by the U.S. Department of Health and Human Services Deputy Secretary announcing emergency actions taken against what the official characterizes as widespread fraud in Minnesota’s child care system.

According to FOX 9 Minneapolis-St. Paul, the HHS Deputy Secretary announced three direct enforcement measures. First, the official stated that a “defend the spend” system has been activated for all Administration for Children and Families (ACF) child care payments nationwide, effective immediately. FOX 9 Minneapolis-St. Paul reports that under this new requirement, providers must submit justification receipts or photo evidence before the federal government will process payments.

Second, according to FOX 9 Minneapolis-St. Paul, the Deputy Secretary signed and sent a demand letter to Governor Walls requiring a comprehensive review of child care centers. In the video, FOX 9 Minneapolis-St. Paul claims this review must include attendance records, licenses, complaints, investigations, and inspection reports.

Third, FOX 9 Minneapolis-St. Paul reports that HHS has launched a dedicated fraud reporting hotline and email address at childcare.gov to receive tips from parents, providers, and members of the public.

In the video, FOX 9 Minneapolis-St. Paul characterizes the situation as indicating that “blatant fraud seems to be rampant in Minnesota,” prompting the federal response. The official quoted by FOX 9 Minneapolis-St. Paul emphasizes that the ACF expects every state to maintain the highest standards of oversight, monitoring, and accountability for federal dollars, and states that Minnesota is not exempt from these expectations.

FOX 9 Minneapolis-St. Paul reports the Deputy Secretary’s statement that the administration is “committed to holding bad actors accountable regardless of rank or office” and that anyone involved in perpetrating fraud against the American people should expect prosecution to the fullest extent of the law.

The enforcement actions announced in this video are significant because federal child care subsidies represent substantial funding for state programs, and the freeze on Minnesota payments until receipt documentation is provided could affect program operations. FOX 9 Minneapolis-St. Paul’s reporting on these measures reflects broader scrutiny of how federal child care dollars are being spent and accounted for at the state level.

In FOX 9 Minneapolis-St. Paul’s Own Words

“We have taken three direct actions against the blatant fraud that seems to be rampant in Minnesota.”

“We require a justification receipt or photo evidence before we make a payment.”

“Anyone who’s involved in perpetrating this fraud against the American people should expect to be prosecuted to the fullest extent.”