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Minnesotaโs alleged fraud scandal continues with the blue state now “on the clock” to comply with federal officials.
“We asked Minnesota for evidence that child care funding goes to legitimate providers,” Jim OโNeill, deputy secretary for the Department of Health and Human Services (HHS), wrote in an X post video alongside HHS Assistant Secretary Administration for Children and Families (ACF) Alex Adams. “Six weeks later, they still have not sent this information.”
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The ACF sent a “preliminary notice of non-compliance” to the state, according to OโNeill.
“We are no longer asking, we are demanding,” Adams said. “Since Minnesota refused to comply with their federally approved state plan and regulations, ACF has sent a preliminary notice of non-compliance to Minnesota.”
Quality Learning Center in Minnesota was found at the center of an alleged childcare fraud scandal in the state. (Madelin Fuerste / Fox News Channel)
OโNeill said the state has 60 days to send the desired documents to federal officials.
“We put Minnesota on the clock,” OโNeill said in the video. “If their response is insufficient, weโll pursue full penalties under the law against the state.”
OโNeill said HHS sends approximately $20 billion to the state annually.
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“Every dollar that the state diverts into fraud is stolen from the intended Minnesota recipient. The status quo was to trust the state to stop fraud. That clearly did not work,” OโNeill said.
On Dec. 30, OโNeill and Adams announced a childcare payment freeze to the state after an alleged fraud scandal was exposed, involving daycare centers in the state.
Minnesota Gov. Tim Walz announces he will not be seeking reelection during a news conference, Jan. 5, at the State Capitol in St. Paul, Minn. (Jerry Holt/The Minnesota Star Tribune via Getty Images)
“Intrepid journalists have made shocking, incredible allegations of extensive fraud in Minnesotaโs childcare programs,” OโNeill said in a Dec. 30 video posted on X.ย “We believe the state of Minnesota has allowed scammers and fake daycares to siphon millions of taxpayer dollars over the past decade.”ย
Last month, OโNeill demanded Gov. Tim Walz turn overย a comprehensive audit of certain daycare centers, including attendance records, licenses, complaints, investigations and inspections.
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A spokesperson for Walzโs office told Fox News in December that they felt the investigation was politically motivated.
“Fraud is a serious issue. But this is a transparent attempt to politicize the issue to hurt Minnesotans and defund government programs that help people,” the spokesperson said.
Nick Shirley upended the news cycle last month with a 42-minute video investigating Minnesota daycare centers that appeared inactive despite receiving millions of dollars in government funding.ย (Nick Shirley)
Adams said the ACF has a team on the ground in the state conducting an “on-site monitoring visit,” where the department plans to attempt to gather records the state has not provided.
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“We will continue to pursue every credible lead, and we will restore integrity to programs that serve Americaโs most vulnerable people,” OโNeill concluded.
The ACF and the state Department of Health office of the inspector general did not immediately respond to Fox News Digitalโs request for comment.ย
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