Ellison Says Trump Administration Child Care Funding Freeze 'May Well Be Illegal'

ST. PAUL, MN — Minnesota Attorney General Keith Ellison on Wednesday sharply criticized the Trump administration’s decision to freeze federal child care funding to Minnesota, calling the move reckless, politically motivated, and potentially illegal.

In a statement released Dec. 31, Ellison said the funding freeze threatens essential child care services relied on by families across the state and appears to be based largely on a viral social media video rather than verified evidence of wrongdoing.

"The Trump administration is threatening funding for the essential childcare services that countless families across Minnesota rely on — apparently all on the basis of one video on social media," Ellison said.

"To say I am outraged is an understatement."

The response comes days after the U.S. Department of Health and Human Services announced it had frozen all federal child care payments to Minnesota amid allegations of widespread fraud within the state’s child care system.

Deputy HHS Secretary Jim O’Neill said the department had "turned off the money spigot" while demanding audits and activating new nationwide safeguards requiring documentation before funds are released.

Ellison said fraud should be prosecuted but rejected the administration’s approach.

"Let me be clear: fraud is unacceptable and individuals responsible for it should be prosecuted," Ellison said. "I’ve been holding fraudsters and scammers accountable for years and will continue to do so."

Ellison said since taking office, his office has prosecuted more than 300 Medicaid fraud cases and recovered more than $80 million through judgments and restitution. He said he also led a bipartisan push at the Legislature last year to expand resources for fraud enforcement and plans to pursue additional measures in the coming session.

"What I will not do, if it is at all within my power, is let the Trump administration devastate funding for services that Minnesota families depend on to afford their lives," Ellison said.

Ellison also linked the child care funding freeze to previous actions taken by the Trump administration involving federal benefits in Minnesota.

He pointed to a mid-December demand that four Minnesota counties conduct in-person re-verification interviews for nearly 100,000 households receiving SNAP benefits within one month, a move Ellison said was impossible and unnecessary.

The administration threatened to cut off food assistance for nearly half a million Minnesotans, including more than 150,000 children, if the demand was not met, Ellison said. He said he sued to block that action and won.

"We’ve seen this movie before," Ellison said.

Ellison said there are legal and appropriate ways for federal and state governments to ensure programs are administered with integrity but accused the administration of bypassing established processes.

"This hasty, scorched earth attack is not just wrong, it may well be illegal," Ellison said, adding that his office is exploring legal options to prevent child care funding from being abruptly cut off.

The funding freeze affects a federal child care aid stream that provides roughly $185 million annually to Minnesota, The New York Times reported.

Minnesota officials have acknowledged fraud concerns in publicly funded programs but say broad funding cutoffs risk harming families and providers that are operating legally.

Ellison said his office remains committed to challenging the federal action.

"My team and I remain committed to protecting the people of Minnesota to the fullest extent of the law," he said.

Also read:

• HHS Freezes Minnesota Child Care Funding Amid Fraud Allegations
• Ellison Says Trump Administration Child Care Funding Freeze 'May Well Be Illegal'