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HHS Officials Put Minnesota on 60-Day Clock Over Child Care Fraud Data

January 22, 2026 · U.S. Department of Health and Human Services · 0:01:46

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What happened

HHS Deputy Secretary Jim O’Neill and Assistant Secretary for the Administration for Children and Families Alex Adams said HHS is stopping fraud in Minnesota in Medicaid, child care, and welfare, and thanked the public for tips sent through childcare.gov following an earlier appeal.

The officials said HHS asked Minnesota in early December for data on child care program participants, enrollment, attendance records, and inspection records, and that Minnesota still had not sent the information. Adams said ACF had sent the state a preliminary notice of non-compliance for refusing to comply with its federally approved state plan and regulations, giving Minnesota 60 days to send the requested evidence, after which HHS would pursue full penalties under the law if the response is insufficient.

O’Neill said ACF also had a team on the ground in Minnesota conducting an on-site monitoring visit to gather records and verify compliance and attendance. He said his department sends around $20 billion to Minnesota every year and that every dollar diverted into fraud is stolen from its intended recipient, pledging to pursue every credible lead.

Why it matters

The update converts the Minnesota child care fraud dispute from a records request into a formal compliance proceeding with a stated deadline and threatened penalties — the escalation step that determines whether federal funds are ultimately withheld.

Scoreboard watch

The officials stated Minnesota was given 60 days from the preliminary notice of non-compliance to produce the records, after which HHS said it would pursue full penalties under the law — a deadline and consequence that can be checked against the state’s response and any subsequent HHS action.

Sources: U.S. Department of Health and Human Services, “Deputy Secretary O’Neill and Assistant Secretary Adams Update on MN Fraud| 1/22| January 2026|”, 2026-01-22 (official upload, embedded above; published 2026-01-22). Transcript via Supadata (private research store, paraphrased and attributed, not republished). All figures and characterizations as stated by the speakers.