Trump administration pauses child care funding nationwide

The Trump administration has paused federal child care funding to all states following allegations of fraud involving daycare centers in Minnesota, according to federal officials.

The pause was confirmed Wednesday by an official with the Department of Health and Human Services, who told ABC News that funding will be released only after states demonstrate the money is being spent legitimately. The official did not specify what documentation states must provide to resume payments.

HHS spokesperson Andrew Nixon told ABC News that funding recipients who are “not suspected of fraudulent activity” are required to submit administrative data to the department for review.

The nationwide pause follows earlier measures taken against Minnesota on Tuesday, where HHS froze federal child care payments after alleging that millions of taxpayer dollars were improperly directed to fraudulent daycare providers.

Federal officials have requested that Minnesota Governor Tim Walz provide a comprehensive audit of child care centers that received federal funds, including attendance records, licensing information, complaints, inspections, and investigations. HHS has also launched a fraud-reporting hotline and email address through Childcare.gov.

The funding pause follows a viral video posted by YouTuber Nick Shirley that raised allegations of fraud involving daycare and healthcare providers in the Minneapolis area.