Senator Collins, Colleagues Call for Accountability for American Taxpayers Following Alleged Child Care Fraud in Minnesota

WASHINGTON, D.C.– U.S. Senator Susan Collins joined Senator Bill Cassidy (R-LA)–Chair of the Senate Health, Education, Labor, and Pensions (HELP) Committee–and the entire Senate Republican conference in calling on Minnesota Governor Tim Walz to provide information on the state’s social service programs amid widespread reports of fraud and abuse of federal child care funding. Some authorities estimate that billions in federal funds across various programs, including child care, nutrition, Medicaid, and housing assistance, may have been misappropriated since 2018.
The Senators asked Governor Walz several questions on Minnesota’s response to these claims of fraud and abuse, including what investigations have been conducted, the status of the state’s efforts to comply with federal directives, and what reforms the state has evaluated to prevent future incidents of fraud or misuse of taxpayer resources.
“Americans should not have to worry about their taxpayer dollars being wasted or abused, and it is incumbent on those in office to ensure these funds are properly safeguarded,”said Senator Collins.“This matter must be investigated so we can find out exactly how this happened and prevent similar incidents of fraud in Minnesota and other states. Transparency and accountability are crucial as a matter of fairness to law-abiding taxpayers whose public trust has been undermined.”
The complete text of the letter is availablehereor below.
Dear Governor Walz:
We write to express serious concern regarding recent reports and federal investigations alleging widespread fraud and misuse of federal funds within Minnesota’s state-administered child care assistance programs. The state’s apparent negligent management of federal funds raises significant concerns about the adequacy of the state’s oversight, verification, and compliance systems for safeguarding taxpayer dollars intended to support vulnerable children and working families. Unfortunately, these latest reports appear to reflect only the tip of the iceberg.
Federal prosecutors have been conducting a broader investigation of large-scale fraud in Minnesota’s social services programs. Some authorities estimate that billions in federal funds across various programs, including child care, nutrition, Medicaid, and housing assistance, may have been misappropriated since 2018. One example includes the “Feeding Our Future” scheme, where more than 50 individuals were convicted for diverting hundreds of millions of dollars in pandemic relief funds intended for school meals.
Under the leadership of President Trump, the U.S. Department of Health and Human Services (HHS) has acted promptly to freeze child care payments to Minnesota pending verification and audits of how funds were used.The Constitution grants Congress the power of the purse, and the United States Senate is exercising its duty to ensure proper stewardship of federal taxpayer dollars for child care programs, and we take this responsibility very seriously. To that end, we are writing to request detailed responses to the following questions, on a question-by-question basis, no later thanThursday, January 22, 2026:
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