Tim Walz calls HHS freezing Minnesota childcare funds 'political' move: 'This is Trump’s long game'

HHS says it has halted all federal childcare funding to Minnesota following viral fraud claims
PUBLISHED DEC 31, 2025
Tim Walz's office rejected the fraud claims in Minnesota after Nick Shirley’s viral video and accused Trump of politicizing the issue as HHS halts funds (Stephen Maturen/Getty Images)
Tim Walz's office rejected the fraud claims in Minnesota after Nick Shirley’s viral video and accused Trump of politicizing the issue as HHS halts funds (Stephen Maturen/Getty Images)


SAINT PAUL, MINNESOTA: Minnesota Governor Tim Walz responded after the Trump administration froze the state’s childcare funds. Posting on X (formerly Twitter), he wrote, “This is Trump’s long game.”

Walz criticized Trump for 'politicizing the issue' to 'defund programs' that, according to him, the amount would have benefited Minnesotans. The funding, which had been approved, was suddenly halted. This isn’t the first time Walz shared his voice against the alleged fraud in his state. Just a few days earlier, the governor pushed back against fraud allegations following a viral clip shared by journalist Nick Shirley.

Tim Walz signed an education finance bill mandating that all public and charter schools in Minnesota provide all students free access to menstrual products (Photo by Anna Moneymaker/Getty Images)
Tim Walz signed an education finance bill mandating that all public and charter schools in Minnesota provide all students free access to menstrual products (Anna Moneymaker/Getty Images)

Tim Walz slams Minnesota funding freeze, calls it a 'political' move

On Wednesday, December 31, Tim Walz reshared a post from the Department of Health and Human Services (HHS) about freezing federal childcare funding for Minnesota, citing viral allegations of fraud. Walz stated, "We’ve spent years cracking down on fraudsters. It’s a serious issue - but this has been his plan all along. He’s politicizing the issue to defund programs that help Minnesotans."

Earlier, Walz had pushed back against Nick Shirley’s fraud claims. A spokesperson for the governor told Fox News that Walz has dedicated years to addressing fraud and strengthening oversight of state programs.

"The governor has worked for years to crack down on fraud and ask the state legislature for more authority to take aggressive action. He has strengthened oversight, including launching investigations into these specific facilities, one of which was already closed."

The spokesperson also highlighted additional measures taken by Walz, including 'hiring an outside firm to audit payments to high-risk programs, shutting down the Housing Stabilization Services program entirely, announcing a new statewide program integrity director, and supporting criminal prosecutions.'

HHS halts all childcare payments to Minnesota amid viral fraud allegations 

Deputy HHS Secretary Jim O'Neill announced on X on Wednesday, December 31, that 'blatant fraud that appears to be rampant in Minnesota and across the country.' "We have turned off the money spigot, and we are finding the fraud," he added.

O'Neill pointed to a video by conservative YouTuber Nick Shirley, which claimed that nearly a dozen Minnesota daycare centers receiving state funds were not providing proper services.

He said the agency has pinpointed the centers featured in the video and instructed the state to carry out a 'comprehensive audit,' examining 'attendance records, licenses, complaints, investigations and inspections.'



The HHS decision followed a 42-minute video posted on Friday, December 26, on X and YouTube. Shirley’s clip documented visits to several Minnesota daycare centers, including one on Nicollet Avenue in Minneapolis.

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