Minnesota 'on the clock' as HHS threatens penalties over childcare fraud scandal

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Minnesota 'on the clock' as HHS threatens penalties over childcare fraud scandal

Deputy Secretary Jim O'Neill gives blue state 60 days to provide documents after 6 weeks of non-response to federal requests

25 Jan 2026 ~~ By Olivia Palombo

Minnesota’s alleged fraud scandal continues with the blue state now "on the clock" to comply with federal officials.
"We asked Minnesota for evidence that child care funding goes to legitimate providers," Jim O’Neill, deputy secretary for the Department of Health and Human Services (HHS), wrote in an X post video alongside HHS Assistant Secretary Administration for Children and Families (ACF) Alex Adams. "Six weeks later, they still have not sent this information."
The ACF sent a "preliminary notice of non-compliance" to the state, according to O’Neill.
"We are no longer asking, we are demanding," Adams said. "Since Minnesota refused to comply with their federally approved state plan and regulations, ACF has sent a preliminary notice of non-compliance to Minnesota."
O’Neill said the state has 60 days to send the desired documents to federal officials.
"We put Minnesota on the clock," O’Neill said in the video. "If their response is insufficient, we’ll pursue full penalties under the law against the state."
O’Neill said HHS sends approximately $20 billion to the state annually.
"Every dollar that the state diverts into fraud is stolen from the intended Minnesota recipient. The status quo was to trust the state to stop fraud. That clearly did not work," O’Neill said.
On Dec. 30, O’Neill and Adams announced a childcare payment freeze to the state after an alleged fraud scandal was exposed, involving daycare centers in the state.
Last month, O’Neill demanded Gov. Tim Walz turn over a comprehensive audit of certain daycare centers, including attendance records, licenses, complaints, investigations and inspections.

Commentary:
The DSA Marxist Commie cult is unhinged and Anti-American they fight anything that helps Americans and America.
Today when the idiot Tampon Timmy Walz was giving his press conference on the poor innocent bystander who was supposedly murdered by ICE he said may have to bring in the National Guard. He said he will billing all the expense to the feds because the Trump people are causing all the chaos. Funny stuff, right there.
Walz is accountable for all programs and the incidents Mayor Frey is allowing in the Twin Cities- charge him and arrest him, then everyone below that had roles and fiduciary responsibilities. Fiduciary responsibility means THEY approved fraudulent payments, whether intentional or not, may be held financially personally responsible. Start clawing all of it back.
The money was stolen from the taxpayers that fund these programs. Government employees must believe that the money just grows on trees.
Additionally, Oregon, California and Washington State also need to account for billions that have just disappeared. Democrats are obviously at the bottom of all this corruption. They're all THIEVES.
 
Right now, I have ZERO confidence that our government is capable of arresting ANY political criminal. It's starting to look like they're all criminals
 

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