Ohio Governor Mike DeWine’s office dismisses daycare fraud concerns as ‘cost of doing business’

COLUMBUS, OHIO: Ohio Governor Mike DeWine’s office has pushed back against growing concerns about potential fraud in taxpayer-funded daycare centers, describing the issue as an unfortunate “cost of doing business.”

The comments come amid viral social media posts alleging widespread misuse of public funds at childcare facilities, particularly in Columbus.

DeWine’s spokesperson, Dan Tierney, told the Columbus Dispatch that the state has been aware of instances in which daycare providers could exploit the system and that such cases have been “known to the state for decades.”

Tierney said there is no evidence of a recent “surge” in fraud and that the state’s anti-fraud measures are “robust.” 

Mike DeWine's office frames alleged fraud as 'familiar challenge'

Tierney said attempts to use daycare centers for fraudulent purposes are not new, but instead part of a pattern that state officials have long understood and addressed. 

“If people are out there who could not contemplate that people were trying to defraud the public through day care centers, I understand it’s new to them … but it’s been known to the state for decades,” the spokesperson said.

He added that Ohio has strong procedures designed to detect and prevent abuse of childcare funding.

Social media reactions to Tierney’s comments have been fierce, with some critics saying that treating fraud as a “cost of doing business” is unacceptable.

One commenter said DeWine “should resign” over the stance.

The controversy intensified after a widely shared video by YouTuber Nick Shirley highlighted "ghost" daycare centers in Minnesota that allegedly receive state funds but do not operate as real childcare providers. 

That video has sparked broader debate about the potential for similar schemes in other states, including Ohio. 

Legislative scrutiny and calls for investigation

The issue has drawn attention from Republican lawmakers in Ohio.

State Representative Brian Stewart has called for an immediate investigation into claims of daycare fraud in Columbus, urging state authorities and the Ohio Attorney General’s office to examine the allegations and report back to the public.

“We cannot allow taxpayer dollars to be wasted on fraudulent schemes,” he said in a statement. 

Daycare centers in Ohio receive state and federal funding to support low-income families and are overseen by the Ohio Department of Youth and Children, which is responsible for licensing and administering childcare subsidies.

In fiscal year 2025, Ohio spent more than $800 million on childcare assistance, according to state budget reports, highlighting the scale of public investment in such programs. 

State officials maintain that they have anti-fraud measures in place, but social media users say more transparency and investigation are needed to ensure taxpayer dollars are protected.