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The alleged fraud scandal in Minnesota continues and the blue state is now “against the clock” to comply with federal authorities.
“We are asking Minnesota for evidence that child care funds are going to legitimate providers,” wrote Jim O’Neill, deputy secretary of the Department of Health and Human Services (HHS), in an X publication video alongside HHS Administration for Children and Families (ACF) deputy secretary Alex Adams. “Six weeks later, they still haven’t sent this information.”
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ACF sent a “preliminary notice of noncompliance” to the state, according to O’Neill.
“We no longer ask, we demand,” Adams said. “Because Minnesota refused to comply with its federally approved state plan and regulations, ACF sent a preliminary notice of noncompliance to Minnesota.”
Quality Learning Center in Minnesota found itself at the center of an alleged child care fraud scandal in the state. (Madelin Fuerste/Fox News Channel)
O’Neill said the state has 60 days to send the desired documents to federal officials.
“We put Minnesota on the clock,” O’Neill said in the video. “If your response is insufficient, we will apply full sanctions in accordance with the law against the State.”
O’Neill said HHS sends about $20 billion to the state annually.
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“Every dollar the state diverts into fraud is stolen from the intended recipient in Minnesota. The status quo was trusting the state to stop fraud. That clearly didn’t work,” O’Neill said.
On December 30, O’Neill and Adams announced a freeze on child care payments to the state after an alleged fraud scandal involving day care centers in the state was exposed.
Minnesota Gov. Tim Walz announces he will not seek re-election during a Jan. 5 press conference at the state Capitol in St. Paul, Minnesota. (Jerry Holt/The Minnesota Star Tribune via Getty Images)
“Intrepid journalists have made shocking and incredible allegations of widespread fraud in Minnesota child care programs,” O’Neill said in a Dec. 30 video posted on
Last month, O’Neill demanded that Gov. Tim Walz provide a comprehensive audit of certain child care centers, including attendance records, licenses, complaints, investigations and inspections.
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A spokesperson for Walz’s office told Fox News in December that they felt the investigation was politically motivated.
“Fraud is a serious problem. But this is a transparent attempt for politicians to spin the problem to hurt Minnesotans and defund government programs that help people,” the spokesperson said.
Nick Shirley ended the news cycle last month with a 42-minute video investigating Minnesota daycares that appeared dormant despite receiving millions of dollars in government funding. (Nick Shirley)
Adams said ACF has a team on the ground in the state conducting an “on-site monitoring visit,” where the department plans to attempt to collect records that the state has not provided.
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“We will continue to pursue all credible leads and restore the integrity of programs serving America’s most vulnerable people,” O’Neill concluded.
The ACF and the state Department of Health inspector general’s office did not immediately respond to Fox News Digital’s request for comment.