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HHS Deputy Secretary Jim O’Neill and HHS Assistant Secretary for the Administration for Children and Families Alex Adams discuss concerns about political patronage in Minnesota, alleging that incompetent state officials have allowed taxpayer money to be diverted to politically connected cronies. They claim state officials have been unwilling to confirm the size and scope of fraud, and assert that Governor Walz’s administration is diverting resources from working families to fake day care scams. They emphasize that raising a young family is challenging and that many families rely on state and federal assistance for affordable child care.
They state that fraud is not victimless and that every dollar stolen is taken from children and families who need these services. They argue that Washington policies influence how states administer programs and can either prevent or invite fraud. They assert that the Biden-Harris administration adopted Child Care and Development Fund rules that created vulnerabilities, weakening accountability and making fraud easier. Consequently, they say a proposed rule has been released to repeal those Biden-era mandates.
The proposed rule is described as having three important elements. First, it ends the requirement that taxpayer dollars must pay for child care before services are provided, so states will no longer be forced to send payments to providers upfront. Second, it ends the enrollment-based billing mandate, allowing payments to be based on verified attendance rather than enrollment alone, so providers cannot bill for children who never show up. Third, it ends the mandate to pre-fund guaranteed seats at childcare centers without competition, thereby restoring parental choice and bringing back market incentives that reward legitimate, high-quality providers.
Taken together, the changes are said to ensure that payments reflect real services and real attendance, making it far harder for fraudulent or nonoperational centers to game the system. The speakers claim that Biden administration policies effectively backed up a Brink’s truck and sent the security home across welfare programs, and that in childcare, this ends today.
Produced by The U. S. Department Of Health And Human Services.