HHS Orders States to Justify Child Care Spending After Minnesota Fraud Allegations

(Photo by Billy Hustace/Getty Image via the Minnesota Reformer)

(Minnesota Reformer) – States must now provide “justification” that federal child care funds they receive are spent on “legitimate” providers in order to get those dollars, President Donald Trump’s administration announced.

The shift in policy came following allegations of fraud in Minnesota’s child care programs, which prompted the U.S. Department of Health and Human Services to freeze all child care payments to the state.

HHS could not offer many specifics on how the review process will play out for other states, but clarified that the money in question is provided through the multibillion-dollar federal Child Care and Development Fund, or CCDF.

“States will be required to provide documentation, such as written justification, receipts, or photographic evidence, demonstrating that funds are supporting legitimate child care providers,” Emily Hilliard, a spokesperson for HHS, said in a statement.