Posted on 01/06/2026 11:04:04 AM PST by Twotone
The Trump administration moved to end a Biden-era rule on Monday it said created a fraud-friendly environment for daycare providers seeking federal funds.
The Department of Health and Human Services proposed a new rule that will reverse regulations that required agencies to distribute government funds to daycare providers based on enrollment, not attendance, and before any care was delivered. HHS said the rule opened up the door for widespread fraud, including the kind currently under investigation in Minnesota.
“Congress appropriated this funding to support working families and ensure children have safe places to grow and learn,” said HHS Secretary Robert F. Kennedy, Jr. “Loopholes and fraud diverted that money to bad actors instead. Today, we are correcting that failure and returning these funds to the working families they were meant to serve.”
Last week, HHS paused all childcare payments to the state of Minnesota while it investigates allegations that millions of taxpayer dollars have been funneled to fraudulent daycares across the state throughout the past ten years.
“Paying providers upfront based on paper enrollment instead of actual attendance invites abuse,” HHS Deputy Secretary Jim O’Neill said. “In Minnesota, we’ve seen credible and widespread allegations of fraudulent daycare providers who were not caring for children at all. The reforms we are enacting will make fraud harder to perpetrate.”
The proposed rule from HHS will reverse changes made to the Child Care and Development Fund under President Joe Biden that required agencies “to pay providers prospectively and based on child enrollment.”
The New York Post, which first reported on the new rule, noted that about $19 billion was paid out under the Biden rules.
The new rule will allow states to make payments based on attendance data, make payments after care is delivered, and allow more parental direction over how the funds are distributed.
The new proposal from Kennedy will reverse these changes and take effect after a 30-day comment period.
The Child Care and Development Fund is a partnership program funded by both the federal government and the states that gives financial assistance to low-income families to provide care for their kids while they work or attend school.
The Trump administration has multiple ongoing investigations into suspected fraud throughout Minnesota, including at daycare centers and other government-funded programs.
Loophole the size of Uranus
Somali crooks get cut off from tax dollars......perhaps.
<><>Trump moved to end a Biden-era rule that created a fraud-friendly
environment for Somali daycare providers seeking federal funds.
<><>HHS’ new rule will reverse regs that let agencies distribute tax dollars
to daycares based on enrollment, not attendance, before any care was delivered.
<><>HHS said the Biden MO opened up the door for widespread
tax dollar fraud currently under investigation in Minnesota.
It’s a rule that schools use to go after truancy. They want those butts in the seats, otherwise, no money.
So the intention of the federal government was to subsidize McDonald’s type workers? And - were all the parents actually working or just having a good time on welfare while the taxpayers paid for their babysitters?
Frankly I’ve seen older people doing some of these jobs & why not - gives them something to do, some extra $ and no daycare needed for someone else to raise your kids.
Everyone I know had to pay their own daycare- as did I - so this all seems strange to me.
How much of this money flowed into the Democrat coffers?
Daycare welfare is tiny.
SNAP
Section 8
Medicaid
Etc.
Do the big ones next.
They’ll be much worse.
Hey! There’s no reason to get personal!
Millions of kids now enrolled in Minnesota day cares.
I raised my daughter on my own and she Never went to daycare, I got the school to change the bus route so they could drop her and others off at the Boys and Girls Club for a couple hours after school and My brother and his wife and Grandma helped a lot. Being self employed I could be flexible with my time, she is 37 this month.
Congress needs to get rid of the program altogether. Daycare is already a tax deductible item. If you are on government assistance, you have all the time to care for your kids.
Democrats will be very upset; they do no like any interruption of their money laundering schemes.
“Paying providers upfront based on paper enrollment instead of actual attendance invites abuse
Nawwwwwwwwwwwww. you dont say
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.