‘Scorched-Earth Attack’: Trump Admin Cuts Off Childcare Funds to All States

The Trump administration on Wednesday froze federal childcare funding to every state in the US after initially suspending funds for Minnesota earlier this week, a move that the state's Democratic attorney general condemned as a "hasty, scorched-earth attack" on key social services.

Jim O'Neill, deputy secretary of the US Department of Health and Human Services (HHS), said in a statement posted to social media that he has "activated our defend the spend system for all [Administration for Children and Families] payments" to states, alleging "fraud that appears to be rampant in Minnesota and across the country." As evidence, O'Neill cited a viral video by Nick Shirley, a right-wing influencer who recently visited Somali-owned Minnesota daycare sites at the direction of state Republicans.

In order to receive Administration for Children and Families (ACF) funding going forward, O'Neill said Thursday, states will have to provide "a justification and a receipt or photo evidence." States with childcare centers that the Trump administration suspects of fraud will have to jump through additional hoops, according to an HHS spokesperson.

The Trump administration's decision to cut off childcare funds to all states—not just Minnesota—on the dubious grounds of fighting fraud came after Democratic Minnesota Gov. Tim Walz accused President Donald Trump of politicizing the issue to advance a broader assault on the social safety net.

"While Minnesota has been combating fraud, the president has been letting fraudsters out of jail," Walz wrote in a social media post on Thursday, apparently referring to the president's commutation of the seven-year prison sentence of David Gentile, a former private equity executive convicted of defrauding more than 10,000 investors.

"Trump’s using an issue he doesn’t give a damn about as an excuse to hurt working Minnesotans," Walz added.

"If we allow this funding freeze to happen, all Minnesotans are going to suffer."

In a statement on Wednesday, Minnesota Attorney General Keith Ellison said that the Trump administration "is threatening funding for the essential childcare services that countless families across Minnesota rely on—apparently all on the basis of one video on social media."

"To say I am outraged is an understatement," he said. "We’ve seen this movie before. In mid-December, the Trump administration gave four counties in Minnesota one month to conduct in-person interviews with almost 100,000 households that receive [Supplemental Nutrition Assistance Program] benefits to reverify their eligibility."

"My team and I are exploring all our legal options to ensure that critical childcare services do not get abruptly slashed based on pretext and grandstanding," Ellison added.

Minnesota state Rep. Carlie Kotyza-Witthuhn (D-49B), co-chair of the Legislature's committee on children and families, warned that "if we allow this funding freeze to happen, all Minnesotans are going to suffer."