The Trump administration is freezing $10 billion in childcare and welfare funds for five states due to fraud concerns, potentially impacting low-income families and child care providers, with broader implications for the economy and social services.
Nine Minnesota child care centers discussed in a viral video were found to be operating as expected during recent state inspections, with ongoing investigations into some facilities for potential issues, amid broader concerns about fraud in state-funded programs.
A report states that Minnesota child care centers at the center of fraud allegations, fueled by a viral video, were operating normally during inspections, with investigations ongoing. The controversy was sparked by a viral video claiming widespread fraud at Somali-run centers, leading to federal review and funding freezes. The state emphasizes fact-based reviews and warns against misinformation that could harm communities, as investigations continue into the alleged misuse of child care funds.
The expiration of pandemic emergency relief funds from the American Rescue Plan Act (ARPA) on September 30 could lead to the closure of up to 70,000 child care centers and the loss of child care for as many as 3.2 million children. The funding had helped stabilize the child care industry by increasing pay for workers and keeping costs lower for parents. Without the funding, experts warn that parents may have to cut back on work or pay higher fees for child care, highlighting the need for increased federal support in the child care sector.