After the Trump administration paused federal assistance to child care centers in Minnesota, parents are now wondering if their kids' day care is in jeopardy, as the government investigates fraud claims.

Minnesota

Federal assistance to child care centers in Minnesota has been paused by the Trump administration, affecting approximately 19,000 children from low-income families. The freeze, totaling $185 million, comes as officials investigate fraud claims, some of which were raised in a viral video by a YouTube influencer. 

CBS News found that while some daycares were previously cited for safety violations, state regulators have not found evidence of fraud in child care programs. Broader investigations into other social services have led to over 90 charges and more than 60 convictions for fraud, but child care is not currently among the programs under investigation. Minnesota's Attorney General has threatened legal action if the funding halt continues.

Fallout grows from freezing of Minnesota child care funds

Tonight, a closer look at the real-life fallout for families in Minnesota after the Trump administration paused federal assistance to child care centers there. Parents now wondering if their kid's daycare is in jeopardy as the government investigates fraud claims. CBS' Jonah Kaplan has been following this developing story from Minneapolis. With roughly $185 million in federal funding frozen, a question, what happens to the 19,000 children from low-income families which rely on those child care services? Over 20,000 children in over 4,000 programs across our state will lose access to child care and early learning. $4 or $5 million got sent to this daycare center. Federal officials credited this viral video from YouTube influencer Nick Shirley, who claimed he found dozens of empty daycares and health clinics that were scamming taxpayers. Try to get in, ring the doorbell, nobody showed up. We believe the state of Minnesota has allowed scammers and fake daycares to siphon millions of taxpayer dollars over the past decade. CBS News visited and reviewed the daycares mentioned in the video. One had a playground, another shared security footage with us showing kids getting picked up and dropped off on the same day Shirley arrived. Federal daycares were previously cited for safety violations, but state regulators found no evidence of fraud. The influencer's video faced pushback today from other daycares, including this center, which said it was vandalized earlier this week. We've been receiving hateful messages through our voicemails threatening us. Beyond daycares, there's no question Minnesota is reeling from a fraud crisis in other social services programs. Federal prosecutors have charged more than 90 people since 2022. More than 60 have been convicted. Investigators say the fraudsters exploited COVID-era rules to steal hundreds of millions of dollars intended to feed low-income kids, house the disabled, and provide services to autistic children. Court files obtained exclusively by CBS News showed where some of that money went instead. Luxury villas, fancy cars, and overseas wire transfers. There are 14 social programs in Minnesota funded by Medicaid that are currently under investigation both by the state and federal government. Childcare is not one of them, but Jerica, also tonight we're learning from Minnesota Attorney General Keith Ellison, he's threatening to sue the Trump administration if the childcare funding does indeed stop. Jonah Kaplan staying on top of it for us, thank you.

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