HHS cuts off Minnesota child care payments over alleged daycare fraud scheme

Crime

HHS cuts off Minnesota child care payments over alleged daycare fraud scheme

HHS Deputy Secretary Jim O'Neill said the state 'funneled millions of taxpayer dollars to fraudulent daycares' over past decade

Louis Casiano

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Louis CasianoFox News

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December 30, 2025 6:02pm ESTclose HHS deputy secretary announces child care payment freeze to Minnesota Video

HHS deputy secretary announces child care payment freeze to Minnesota

HHS Deputy Secretary Jim O'Neill announced a child care payment freeze to Minnesota, following fraud allegations in the state. (Credit: HHSTV1 via YouTube)

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The U.S. Department of Health and Human Services will freeze all child care payments to Minnesota, the agency said Tuesday, amid the scrutiny surrounding alleged fraud involving child daycare centers across the state.

Quality learning center sign

Quality Learning Center in Minnesota was found at the center of an alleged childcare fraud scandal in the state. (Fox News)

"You have probably read the serious allegations that the state of Minnesota has funneled millions of taxpayer dollars to fraudulent daycares across Minnesota over the past decade," HHS Deputy Secretary Jim O'Neill wrote on X. 

This story is breaking. Please check back for updates. 

Louis Casiano is a reporter for Fox News Digital. Story tips can be sent to louis.casiano@fox.com.

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