Minnesota Risks $185 Million in Repayment Over Failure to Provide Child Care Center Records
The US Department of Health and Human Services (HHS) is warning Minnesota that it may have to repay millions of dollars in federal funding if the state fails to hand over records related to child care centers amid a growing fraud scandal. HHS has issued two letters to the state, stating that Commissioner Tikki Brown's department had 60 days to provide requested documents.
The issue revolves around the failure of Minnesota to provide records on child care program participants, enrollment, attendance, and inspection records. Alex Adams, Assistant Secretary for the Administration for Children and Families, told Brown that the information was crucial in ensuring that taxpayer dollars were being used effectively.
Minnesota is one of five Democrat-run states facing a freeze on over $10 billion in federal funding after HHS deemed their block grant programs to be at risk of fraud. The state's Department of Children, Youth, and Families has been under scrutiny since allegations surfaced about the misuse of funds.
According to Adams, more than 500 tipsters have come forward with information related to the scandal. The investigation is ongoing, with Deputy Secretary Jim O'Neill stating that HHS will pursue full penalties against the state if records are not provided by March 16.
Under federal regulations, the state may be required to pay back past money received from HHS and disqualify itself from receiving future funds. A deduction of an amount equal to or less than the improperly expended funds could also be made from the administrative portion of the state's allotment for the following fiscal year.
The HHS Office of Inspector General and the Minnesota Office of the Legislative Auditor have both found evidence that child care centers in receipt of federal block grants failed to maintain daily attendance records and lacked adequate financial controls. The issue has sparked outrage, particularly regarding Somali-run child care centers in the Twin Cities, whose operators were targeted in a 2022 federal prosecution for stealing millions of dollars.
As the investigation continues, HHS officials are urging Minnesota's Department of Children, Youth, and Families to provide the requested information. However, so far, the state has yet to respond with any records, opting instead to delay or defer.
The US Department of Health and Human Services (HHS) is warning Minnesota that it may have to repay millions of dollars in federal funding if the state fails to hand over records related to child care centers amid a growing fraud scandal. HHS has issued two letters to the state, stating that Commissioner Tikki Brown's department had 60 days to provide requested documents.
The issue revolves around the failure of Minnesota to provide records on child care program participants, enrollment, attendance, and inspection records. Alex Adams, Assistant Secretary for the Administration for Children and Families, told Brown that the information was crucial in ensuring that taxpayer dollars were being used effectively.
Minnesota is one of five Democrat-run states facing a freeze on over $10 billion in federal funding after HHS deemed their block grant programs to be at risk of fraud. The state's Department of Children, Youth, and Families has been under scrutiny since allegations surfaced about the misuse of funds.
According to Adams, more than 500 tipsters have come forward with information related to the scandal. The investigation is ongoing, with Deputy Secretary Jim O'Neill stating that HHS will pursue full penalties against the state if records are not provided by March 16.
Under federal regulations, the state may be required to pay back past money received from HHS and disqualify itself from receiving future funds. A deduction of an amount equal to or less than the improperly expended funds could also be made from the administrative portion of the state's allotment for the following fiscal year.
The HHS Office of Inspector General and the Minnesota Office of the Legislative Auditor have both found evidence that child care centers in receipt of federal block grants failed to maintain daily attendance records and lacked adequate financial controls. The issue has sparked outrage, particularly regarding Somali-run child care centers in the Twin Cities, whose operators were targeted in a 2022 federal prosecution for stealing millions of dollars.
As the investigation continues, HHS officials are urging Minnesota's Department of Children, Youth, and Families to provide the requested information. However, so far, the state has yet to respond with any records, opting instead to delay or defer.