HHS Freezes Childcare Payments Nationwide After Bombshell Somali-Linked Daycare Fraud Allegations In Minnesota
The Department of Health and Human Services is freezing all federal childcare payments to every state following alleged Somali-linked welfare fraud involving Minnesota daycare and autism centers. These revelations shocked the nation earlier this week after being exposed by citizen journalist Nick Shirley.
A growing army of citizen journalists is descending into corrupt, Democratic-run states this week, where additional suspected welfare fraud schemes tied to migrant networks are being uncovered – even as corporate media outlets attempt to downplay the findings and discredit those reporting them. Legacy media has acted as a public relations arm for the Democratic Party in an attempt to discredit anyone investigating suspected fraud.
By Tuesday, Shirley's viral exposé of suspected Minneapolis daycare fraud had surpassed 100 million views on X and sparked a massive shift in public sentiment, creating broader support for HHS' efforts to stop fraud, waste, and abuse. That public sentiment enabled HHS to take decisive action.
The action phase began Tuesday when HHS froze all federal childcare funding for Minnesota, citing rampant fraud allegations attributed to Somali-linked daycare operators. By Wednesday night, the funding suspension had been expanded nationwide.
We have frozen all child care payments to the state of Minnesota.
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.
Today we have taken three actions… pic.twitter.com/VYbyf3WGop
— Deputy Secretary Jim O'Neill (@HHS_Jim) December 30, 2025
ABC News was the first to report HHS' move to cut all federal funding to daycares nationwide until operators can prove their legitimacy.
An HHS official said the funds will be released "only when states prove they are being spent legitimately." There were no further details or more information about the paperwork proof the agency requires from the states. It is assumed this will be addressed in an upcoming memo.
HHS spokesperson Andrew Nixon told ABC News that recipients of funding who are "not suspected of fraudulent activity" are required to send HHS their "administrative data" for review.
HHS' approach is very similar to the Small Business Administration's move last month, when it issued letters to all contractors in the 8(a) Business Development Program, the nation's largest DEI program, requesting financial records to root out fraud, waste, and abuse. SBA also halted grants to the state-run by what appear to be very corrupt and hinged Democrats.
Nixon said that recipients of federal funding in Minnesota, as well as those "suspected of fraudulent activity," must provide HHS with additional records, including attendance logs, licensing documents, inspection and monitoring reports, and records of 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 the outlet.
What's shocking is that CNN is more driven to prove Shirley wrong.
Yet the truth slipped …
More here:
The scam is so clumsy it doesn’t need a RICO case.
The gut-punch for regular Americans is seeing how most of the world works: tribal, coordinated patronage networks, & how that has a game-theoretic edge over uncoordinated high-trust individualists.https://t.co/WQjdFAI2Pe— Yuri Bezmenov's Ghost (@Ne_pas_couvrir) January 1, 2026
Must Read:
Time to revitalize DOGE and stop the looting of the US Treasury.
Tyler Durden
Thu, 01/01/2026 – 08:10