In the wake of explosive fraud allegations in Minnesota and, now, Washington State, the Trump administration is freezing child care payments to all states pending a review of recipient data by the Department of Health & Human Services (HHS).
According to HHS spokesperson Andrew Nixon, all recipients of funding are required to send data to HHS for review; recipients who are not suspected of fraudulent activity are only required to submit “administrative data,” but those recipients who are suspected of fraudulent activity are required to submit additional records:
Nixon said that recipients of federal funding in Minnesota and those “suspected of fraudulent activity” have to provide the HHS with additional records that include “attendance records, licensing, inspection and monitoring reports, complaints and investigations.”
“It’s the onus of the state to make sure that these funds, these federal dollars, taxpayer dollars, are being used for legitimate purposes,” Nixon told ABC News.
In a separate statement to the New York Post, Nixon said:
“HHS has a clear duty to verify the proper use of taxpayer funds. The documentation process exists to rule out fraud and confirm that funds are supporting legitimate child care providers. These requirements help ensure the integrity of the program and protect both families and providers
According to Nixon, until individual state-level allocations can be vetted, no further funding will be disbursed.
While investigations have been ongoing in the state since May and nearly two dozen of indictments have already been returned, independent journalist Nick Shirley’s viral video documenting numerous taxpayer-funded “learing” centers with zero children in attendance brought nationwide attention to the scandal.
The first Autism program fraud indictment was back in September — loss was $14 million.
The defendant pled guilty on Dec. 18 and is cooperating.
The US Attorney covered it in his televised press conference that same day, and announced a second indictment — loss $6 million –… https://t.co/j0gdJnuNSk
— Shipwreckedcrew (@shipwreckedcrew) December 31, 2025
🚨 Here is the full 42 minutes of my crew and I exposing Minnesota fraud, this might be my most important work yet. We uncovered over $110,000,000 in ONE day. Like it and share it around like wildfire! Its time to hold these corrupt politicians and fraudsters accountable
We ALL… pic.twitter.com/E3Penx2o7a
— Nick shirley (@nickshirleyy) December 26, 2025
Cam Higby, another independent journalist, documented similar issues in Washington State.
🚨$800,000 FOR FAKE DAYCARE?
I went to the listed address for “Hilowle Safia Daycare” in Kent, WA. Residents say there IS NO DAYCARE HERE.
Records show massive subsidy payments following inspections reflecting risk of death to children. pic.twitter.com/8lFWCjIqpo
— Cam Higby 🇺🇸 (@camhigby) December 31, 2025
In a Truth Social post, President Trump hinted that investigations and indictments will be finding their way to California, where RedState has reported on pandemic unemployment fraud thought to be close to $60 billion at last count, and where our ongoing investigation into federally-funded day care centers (which will be published in January) suggests that similar fraud schemes are being carried out. Trump said, “There is more FRAUD in California than there is in Minnesota, if that is even possible.”
It’s very possible, Mr. President.
Happy New Year, and let the sunshine in.
Editor’s Note: Help us continue to report the truth about corrupt politicians like Gavin Newsom and Tim Walz.
Join RedState VIP and use promo code MERRY74 to receive 74% off your membership.
