(The Center Square) – The U.S. Department of Health and Human Services says states will not receive matching child-care funds until they verify that providers are legitimate, and President Donald Trump says Illinois is worse than Minnesota on the issue.
The U.S. Department of Homeland Security and the Federal Bureau of Investigation are probing fraud allegations involving tens of millions of federal taxpayer dollars sent to day care centers in Minnesota.
Trump discussed the issue at a New Year’s Eve party in Palm Beach, Florida.
“Can you imagine they stole $18 billion? That’s just what we’re learning about,” Trump said. “California is worse. Illinois is worse, and, sadly, New York is worse, a lot of other places. We’re going to get to the bottom of all of it. It’s a giant scam.”
Trump touted the money his administration is bringing in through tariffs and promised to recover the dollars lost to alleged fraud.
“I view that as a reason for a good year because we’re going to get to the bottom of it. We’re going to get that money back. It’s all coming back,” the president said.
The U.S. Department of Health and Human Services announced Tuesday that it had frozen the sending of taxpayer dollars to Minnesota day care centers.
In addition, the agency said it will restrict any state from federal child care dollars unless it verifies the proper use of taxpayer funds.
“The documentation process exists to rule out fraud and confirm that funds are supporting legitimate child care providers,” U.S. Department of Health and Human Services Press Secretary Emily G. Hilliard said in a statement to The Center Square.
Hilliard said the Child Care and Development Fund requirements help protect both families and providers.
“The onus is on the state to provide additional verification, and until they do so, HHS will not allow the state to draw down their matching funds for the CCDF program,” the statement added.
The federal government appropriated $412,167,876 to Illinois for child care programs in 2025, according to HHS. Illinois Network of Child Care Resource and Referral Agencies said 172,794 children benefited from Child Care Assistance Program funding.
The Illinois state budget for this year includes $2 billion for the CCAP, an increase from $1,789,399,000 in fiscal year 2025. The current budget also allocates $777,099,000 for Child Care Services.
Illinois Republican U.S. Senate candidate Pamela Denise Long said elected officials need to manage the checkbook as if the money belongs to the people.
“I suspect Minnesota is but a tip of the iceberg, as they say. I not only want daycare centers looked into, I want not-for-profit centers looked into,” Long told The Center Square. “I also want so-called ‘legit’ big business looked into that is dependent upon government funding.”
HHS has launched a hotline for individuals to report fraud in the child care system in any state.
Complaints can be filed online or by calling 1-800-447-8477.
Greg Bishop, Elyse Apel and Andrew Rice contributed to this story.
