WASHINGTON — The Department of Health and Human Services on Tuesday suspended all federal child care payments to Minnesota following allegations of fraud that circulated widely online.
HHS notified Minnesota officials of the funding freeze and cited an ongoing investigation into possible misuse of federal child care funds. The department said it took the step to allow a full review of the claims.
Reports linked to the allegations point to potential irregularities involving child enrollment numbers and billing practices among some child care providers. HHS did not release specific details while the review continues.
The Minnesota Department of Human Services said it is cooperating with federal officials and working to address the concerns. State leaders said they remain committed to accountability and transparency while stressing the importance of child care services for families across Minnesota.
HHS said it will continue reviewing the allegations in coordination with Minnesota officials. The department did not provide a timeline for restoring payments and said it will determine next steps after completing its assessment.