Rounds, Cassidy and Colleagues Blast Tim Walz for Rampant Childcare Fraud, Demand Accountability for American Taxpayers

WASHINGTON– U.S. Senators Mike Rounds (R-S.D.), Bill Cassidy (R-La.) and the entire Senate Republican Conference are demanding accountability from outgoing Minnesota Governor Tim Walz amid widespread reports of fraud and abuse of federal child care funding in Minnesota.
“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,”wrote the Senators. “Unfortunately, these latest reports appear to reflect only the tip of the iceberg.”
“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,”continued the Senators.
This effort is in conjunction with the Trump administration, which has paused child care funding to Minnesota and other states pending verification and audits of how funds were used. There is also a current federal investigation into large-scale fraud in Minnesota’s social services programs.
Rounds and Cassidy are joined by Majority Leader John Thune (R-S.D.) and U.S. Senators John Barrasso (R-Wyo.), Mike Crapo (R-Idaho), Susan Collins (R-Maine), Jim Banks (R-Ind.), John Kennedy (R-La.), Ted Cruz (R-Texas), Rand Paul (R-Ky.), Ashley Moody (R-Fla.), Tim Scott (R-S.C.), Tommy Tuberville (R-Ala.), Roger Marshall (R-Kan.), James Lankford (R-Okla.), Lindsey Graham (R-S.C.), Shelley Moore Capito (R-W.Va.), Pete Ricketts (R-Neb.), Ted Budd (R-N.C.), Kevin Cramer (R-N.D.), Joni Ernst (R-Iowa), Cynthia Lummis (R-Wyo.), Deb Fischer (R-Neb.), Mike Lee (R-Utah), Jim Risch (R-Idaho), Tom Cotton (R-Ark.), Eric Schmitt (R-Mo.), Markwayne Mullin (R-Okla.), Bernie Moreno (R-Ohio), Katie Britt (R-Ala.), Marsha Blackburn (R-Tenn.), Rick Scott (R-Fla.), John Cornyn (R-Texas), Tim Sheehy (R-Mont.), Jon Husted (R-Ohio), Thom Tillis (R-N.C.), John Hoeven (R-N.D.), Bill Hagerty (R-Tenn.), Lisa Murkowski (R-Alaska), Cindy Hyde-Smith (R-Miss.), Dan Sullivan (R-Alaska), Josh Hawley (R-Mo.), Jim Justice (R-W.Va.), Steve Daines (R-Mont.), Ron Johnson (R-Wis.), Jerry Moran (R-Kan.), Todd Young (R-Ind.), John Curtis (R-Utah), Dave McCormick (R-Pa.), Mitch McConnell (R-Ky.), Roger Wicker (R-Miss.), John Boozman (R-Ark.) and Chuck Grassley (R-Iowa).
Read the full letterHEREor 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:
###