The Division of Well being and Human Companies mentioned Tuesday that it’s freezing all federal baby care funds to the state of Minnesota within the wake of a viral video that alleged widespread fraud at baby care amenities throughout the state.
In a assertion and accompanying video on X, Deputy Secretary Jim O’Neill and Assistant Secretary Alex Adams mentioned that along with halting all funds to Minnesota they had been implementing new necessities for baby care funds nationwide.
The assertion mentioned that each one funds dealt with by the Administration for Kids and Households — a part of HHS — will “require a justification and a receipt or picture proof earlier than we ship cash to a state.”
“We now have turned off the cash spigot and we’re discovering the fraud,” the assertion mentioned.
In a follow-up publish greater than an hour after that assertion, O’Neill added that funds will probably be launched “solely when states show they’re being spent legitimately.”
A spokesperson for Gov. Tim Walz, who was the 2024 Democratic nominee for vp, responded in a press release Tuesday saying the governor “has been combatting fraud for years.”
“Fraud is a critical challenge. However it is a clear try to politicize the problem to harm Minnesotans and defund authorities applications that assist individuals,” the spokesperson mentioned.
Adams mentioned within the video assertion posted to O’Neill’s account that ACF offers Minnesota $185 million in baby care funds annually. HHS didn’t reply to an inquiry about precisely how a lot of that’s being frozen.
The announcement by HHS comes days after FBI Director Kash Patel mentioned on Sunday that the bureau had “surged” sources to Minnesota to analyze claims of widespread fraud, insisting these steps had been taken earlier than right-wing influencer Nick Shirley’s video went viral over the weekend for purporting to indicate baby care amenities that weren’t operational however had been receiving state and federal funds.
The FBI’s fraud investigation has largely focused Somali immigrants in Minnesota.
The Justice Division has been investigating fraud involving some members of Minnesota’s Somali group for years. Federal prosecutors in 2022 — underneath the Biden administration — introduced preliminary indictments in what they mentioned was a $250 million scheme to defraud a federally funded baby vitamin program.
As of November, prosecutors had charged 77 individuals, and so they described Aimee Bock, who’s white, because the mastermind of the operation. A jury convicted Bock in March.
Corky Siemaszko contributed.
