Minnesota Gov. Tim Walz (D) accused President Donald Trump of “politicizing the issue” of alleged Somali immigrant fraud after the Department of Health and Human Services (HHS) froze federal payments to childcare businesses in the state.
In a post on X, Walz responded to a video from HHS Deputy Secretary Jim O’Neill in which O’Neill announced that the agency had “frozen all child care payments” to Minnesota.
O’Neill also explained that HHS had activated the “defend the spend system for all ACF childcare payments across America,” and that Walz had been sent a “demand letter” requiring a “full 360 review” of the childcare centers in Minnesota, which includes “attendance records, licenses, complaints, investigations, and inspections.”
“This is Trump’s long game,” Walz said. “We’ve spent years cracking down on fraudsters. It’s a serious issue — but this has been his plan all along. He’s politicizing the issue to defund programs that help Minnesotans.”
The Hill reported that since 2022, the Department of Justice (DOJ) “has charged 98 people in connection with the sweeping fraud case.”:
Dating back to 2022, the Justice Department has charged 98 people in connection with the sweeping fraud case, which concerns businesses that falsely billed programs under Minnesota’s Department of Human Services (MDHS).
Joseph Thompson, assistant U.S. attorney for Minnesota, said at a press conference earlier this month it is possible that “half or more” of the $18 billion billed to 14 services under MDHS since 2018 is fraudulent.
Court records reviewed by the Minnesota Star Tribune earlier this month indicate that the alleged fraud is closer to $218 million.
The announcement from HHS came after citizen journalist Nick Shirley shared a video of himself visiting several childcare centers in Minnesota that allegedly received millions of dollars in federal aid. While visiting these locations, there appeared to be no signs of children.
One of the places the Shirley visited, the Quality Learning Center had a misspelled sign that said, Quality “Learing” Center.
Since Shirley’s exposé was released, the New York Post obtained video footage of the Quality Learning Center fixing the misspelled word on its sign.
Ibrahim Ali, who serves as the manager of the Quality Learning Center, dismissed allegations of fraud, telling KARE11 News that “there’s no fraud going on whatsoever.”
