UPDATE: Minnesota families are facing an urgent crisis as federal health officials have announced a freeze on funds crucial for child care, potentially affecting thousands. The Department of Health and Human Services declared this funding freeze on October 17, 2023, citing concerns over alleged fraud within child care centers.
Parents and day care providers are sounding the alarm, warning that without this federal support, many centers could close within weeks. Day care owner Maria Snider from St. Paul stated, “Many families in Minnesota are living paycheck to paycheck as it is,” emphasizing that job losses may lead to homelessness for vulnerable families.
The freeze impacts approximately $185 million in federal funding that supports about 19,000 children in Minnesota. Deputy Secretary Jim O’Neill announced this drastic measure following a controversial viral video by Nick Shirley, which alleged widespread fraud in child care centers run by individuals of Somali origin. The video has ignited significant backlash due to its lack of conclusive evidence.
LeAndra Estis, a state employee and mother, expressed her dire situation, saying, “Without the funding, I would be forced to quit my job or be terminated.” Her family relies on subsidized child care, which costs several hundred dollars per week.
Federal officials are demanding more thorough documentation from child care centers to ensure compliance. Andrew Nixon, a spokesperson for the Department of Health and Human Services, confirmed that funding would resume once they are assured of the integrity within these centers. This involves scrutinizing attendance logs and regulatory compliance for centers suspected of fraud.
The funding freeze is part of a larger crackdown by the Trump administration on alleged fraud in Minnesota’s social services, which has seen numerous charges against individuals since 2022. Local investigations have scrutinized day care centers for overbilling, yet few convictions have resulted.
In a troubling incident related to these allegations, the Minneapolis Police Department is currently investigating a break-in at one of the centers featured in Shirley’s video, where enrollment records were reportedly stolen.
Minnesota officials, including Governor Tim Walz, have criticized the administration’s response as reckless and politically motivated. “He’s politicizing the issue to defund programs that help Minnesotans,” Walz stated, highlighting the distress caused by potential funding cuts.
Parents relying on subsidized child care are expressing fear and uncertainty. Deko Nor, a 24-year-old mother, fears that losing access to affordable child care may derail her plans to start medical school. “People are struggling with rent as it is,” she remarked, reflecting the emotional toll this situation is taking on families.
As the situation develops, all eyes will be on the Department of Health and Human Services and the state’s response to these alarming allegations. Families across Minnesota are left anxious and waiting for clarity on their child care futures.






































