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Trump Freezes EVERY State's Child Care Cash Over Minnesota Mega-Fraud

The Trump administration froze federal child care funds nationwide Tuesday, requiring enhanced verification after fraud allegations in Minnesota Somali-run centers.

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The Trump administration has halted federal child care payments nationwide, demanding stricter verification amid allegations of rampant fraud in Minnesota programs tied to Somali-operated centers.

The Department of Health and Human Services froze all Child Care and Development Fund payments Tuesday, citing "blatant fraud that appears to be rampant in Minnesota and across the country."

Deputy Secretary Jim O'Neill announced the action on social media, referencing a viral video by conservative influencer Nick Shirley alleging up to $100 million in misuse at Minneapolis day cares run by Somali residents.

All 50 states must now provide additional administrative data, including justifications, receipts or photo evidence, before receiving funds.

Minnesota faces heightened scrutiny, with requirements for attendance records, licensing details, past enforcement actions and inspection reports for suspected centers.

O'Neill demanded a comprehensive audit from Gov. Tim Walz, D-Minn.

The move follows ongoing federal probes into Minnesota's social programs, including a $250 million COVID-era child nutrition scam largely involving Somali defendants.

Walz called it politicizing a serious issue the state has long addressed.

"He's politicizing the issue to defund programs that help Minnesotans," Walz said.

Minnesota Democratic Attorney General Keith Ellison said he is "exploring all our legal options to ensure that critical childcare services do not get abruptly slashed based on pretext and grandstanding."

State Senate Majority Leader Erin Murphy condemned the decision.

"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 Trump’s agents strip away crucial funding. Our day care system is already stressed; this reckless decision could force a collapse that affects all of us."

White House Press Secretary Karoline Leavitt said investigations may expand to blue states like California and New York, with continued on-site probes in Minnesota and potential deportations or denaturalizations.

Providers expressed alarm. Maria Snider, director of Rainbow Child Development Center, said centers face layoffs and closures without the $185 million annual federal aid to Minnesota.

Ahmed Hasan, Somali director of ABC Learning Center featured in Shirley's video, denied wrongdoing.

"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."

He said the center enrolls 56 children and undergoes regular state checks but has faced harassing calls since the video.

Washington state Attorney General Nick Brown warned against harassment.

"Showing up on someone’s porch, threatening, or harassing them isn’t an investigation," Brown said. "Neither is filming minors who may be in the home."

This crackdown exposes the rot in taxpayer-funded welfare schemes, where fraudsters—often shielded by political correctness—have siphoned billions while hardworking Americans foot the bill. Finally, accountability hits home.

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