Senate Republicans demand answers on alleged misuse of child care funds in Minnesota

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Bill Cassidy - Chairman of the Senate HELP Committee | Official U.S. Senate headshot

Senate Republicans demand answers on alleged misuse of child care funds in Minnesota

U.S. Senate Republicans, led by Bill Cassidy (R-LA), chair of the Senate Health, Education, Labor, and Pensions (HELP) Committee, have called for greater accountability from outgoing Minnesota Governor Tim Walz following reports of widespread fraud in the state's administration of federal child care funding.

“Every American should be angry. These federal funds are supposed to be used for improving children's lives. Every dollar stolen is a dollar taken away from a family who needs it,” said Dr. Cassidy. “President Trump and Senate Republicans will end this fraud and abuse in our government.”

Majority Leader John Thune (R-SD) stated, “The allegations of fraud coming out of Minnesota are egregious. It’s exactly the kind of fraud that Senate Republicans went after with the Working Families Tax Cuts, which included commonsense reforms to make sure that benefits are going to people for whom they are actually intended. I’m grateful to Chairman Cassidy for leading this effort to help get to the bottom of this and ensure the responsible stewardship of taxpayer dollars.”

Senator John Barrasso (R-WY) added, “Emboldened criminals have stolen billions of dollars from federal programs – billions meant to help vulnerable Americans. We are just beginning to scratch the surface of the staggering amount of fraud taking place in Minnesota. Republicans will not allow Governor Walz and Democrats to sweep this massive theft of taxpayer dollars under the rug.”

Senator Mike Crapo (R-ID), chair of the Senate Finance Committee, commented, “Taxpayers and children alike deserve to have this funding protected from theft. It is allegations like these that prompted Senate Republicans to strengthen program integrity provisions through the Working Families Tax Cuts to cut down on waste, fraud and abuse in our spending programs. Minnesota must do more to ensure these laws are enforced.”

The call for accountability comes as federal prosecutors investigate large-scale fraud within Minnesota’s social services programs. Reports suggest that since 2018, billions in federal funds across various assistance programs—including child care—may have been misappropriated. A notable case cited was the “Feeding Our Future” scheme where over 50 individuals were convicted for diverting hundreds of millions in pandemic relief funds intended for school meals.

In response, President Trump’s administration has paused child care payments to Minnesota pending audits and verification on fund usage. The U.S. Department of Health and Human Services is conducting these reviews as part of its oversight responsibilities.

The letter signed by all members of the Senate Republican Conference requests detailed information from Governor Walz about state efforts regarding compliance with federal audit directives, additional verification requirements for providers receiving federal child care funds, monitoring practices for licensed providers receiving subsidies, investigations into fraudulent activity since 2018, regulatory actions taken following previous audits—including recommendations made by a May 2025 HHS Office of Inspector General report—and documentation related to all providers receiving such funds.

The HELP Committee oversees public health initiatives as well as education and workforce development policies at the federal level; it also supervises relevant agencies such as those responsible for health research and workplace safety (https://www.help.senate.gov/). The committee influences regulations affecting health and education nationwide while providing oversight on key policy decisions (https://www.help.senate.gov/).

Bill Cassidy currently serves as chair during the 119th Congress (https://www.help.senate.gov/).

For further updates from HELP Republicans visit their website or Twitter account @GOPHELP.

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