Federal Funding Freeze and Escalated Investigations
As the controversy grew, the U.S. Department of Health and Human Services (HHS) took the rare step of freezing federal child care payments to Minnesota until the state could demonstrate that federal funds were being used appropriately.
In addition to HHS’s action, representatives from the Department of Homeland Security (DHS) and the Federal Bureau of Investigation (FBI) increased their presence in the state to look into possible misuse of federal programs.
FBI leadership acknowledged awareness of the situation and confirmed that personnel and resources were being allocated to investigate potential fraud schemes linked with childcare and other social service programs.
Importantly, federal officials did not publicly claim that fraud had been proven at the centers featured in the video; rather, they indicated that they were pursuing investigatory leads and needed comprehensive documentation from the state to determine the legitimacy of program operations.
In the weeks following the viral storm, multiple official and media investigations shed further light on the situation — presenting a more nuanced and less sensational picture than what the original video implied. Continue reading…
