Story perspectives

Feds Withhold $259M Over Minnesota Child Care Oversight Failures

3/2/2026

Summary

Story summary

U.S. Department of Health and Human Services (HHS) found Minnesota’s child care agency failed to verify attendance records.
HHS highlighted inadequate controls over federal funding, allowing centers to receive payments without proper attendance verification.
The administration of U.S. President Donald Trump had relaxed rules on attendance-based billing, complicating oversight.
HHS will withhold $259.5 million in Medicaid funds unless Minnesota implements a corrective action plan within 60 days.

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Story summary

U.S. Department of Health and Human Services (HHS) found Minnesota’s child care agency failed to verify attendance records.
HHS highlighted inadequate controls over federal funding, allowing centers to receive payments without proper attendance verification.
The administration of U.S. President Donald Trump had relaxed rules on attendance-based billing, complicating oversight.
HHS will withhold $259.5 million in Medicaid funds unless Minnesota implements a corrective action plan within 60 days.