What were the findings of Minnesota’s 2019 investigation into child care fraud and how do they compare to the current reviews?
Executive summary
A 2019 state review found that Minnesota’s Child Care Assistance Program (CCAP) likely suffered several million dollars in fraudulent billing, while prosecutions up to that point had documented about $5–$6 million in proven fraud and the auditor found no evidence tying fraud proceeds to terrorist groups [1] [2]. The current wave of reviews, prompted by a viral video in late 2025, has led to federal freezes and new multiagency probes, but initial site visits by state investigators reported centers operating normally and cast doubt on the viral claims even as criminal and administrative reviews remain ongoing [3] [4] [5].
1. What the 2019 investigation actually concluded about scope and prosecutions
A formal scrutiny by state auditors and the Department of Human Services’ investigative unit dating to the 2010s concluded that schemes involving billing for children not present had occurred and that prosecutors had proven roughly $5–$6 million in CCAP fraud through about 2018, while investigators believed the true level of fraud was likely higher—“several million dollars”—than what prosecutions had established [1] [6] [2]. The Office of the Legislative Auditor reviewed allegations including sensational claims linking CCAP fraud to foreign terrorist financing and explicitly reported those assertions were unsubstantiated by the evidence it examined [1] [2].
2. The institutional context the 2019 report revealed — limited tools, ongoing weak spots
The 2019-era reviews documented a program struggling to reconcile attendance records and to proactively root out billing abuse: Minnesota had created a specialized investigatory team in 2013 to pursue CCAP fraud, and subsequent state and federal audits highlighted systemic vulnerabilities such as payment errors and limits on enforcement capacity that left some fraud undetected or difficult to prosecute [7] [2].
3. What triggered the current reviews and what they have done so far
A viral video published in late December 2025 alleged widespread fraud at several Minnesota child-care centers and prompted rapid federal involvement: HHS froze federal child-care payments to Minnesota, DHS and FBI resources were deployed, and state investigators re-visited the centers named in the clips [4] [3]. Initial on-the-ground checks reported by state officials found the centers “operating as expected” and inspectors noted children present at visits, which cast doubt on the broad claims made in the viral material [3] [5] [8].
4. How the preliminary findings compare to 2019’s conclusions
Unlike the 2019 assessment, which synthesized years of audits and prosecutions and produced quantified findings about proven fraud and investigative gaps, the current reviews are preliminary, reactive, and driven by a high-profile social-media narrative: early state site visits have not corroborated the viral video’s sweeping allegations, but officials and federal agencies emphasize investigations are still underway and have not closed the question of fraud in all cases [1] [3] [4].
5. Competing narratives, political stakes, and evidentiary limits
The viral video and some political actors seized the moment to allege massive schemes, prompting aggressive federal responses and partisan attention [9] [5], while state officials and local providers pushed back, warning that unvetted claims and tip-line misuse can harm communities and interfere with investigations [4]. Reporting indicates KSTP and other outlets found the video’s broad assertions unproven and that prior audits showed Minnesota lacked full capacity to detect all fraud, meaning both past findings of real—but not unlimited—fraud and present denials of the video’s specific allegations can be true simultaneously [7] [5].
6. What remains unresolved and how to interpret the two reviews together
The 2019 work established a documented baseline—proven fraud of $5–$6 million and likely additional unproven losses—plus an absence of evidence linking CCAP money to terrorism [1] [2]; the 2025–26 reviews are still in process, have produced immediate operational responses (federal payment freeze, multiagency probes) and initial site findings that undercut the viral video’s claims, but they have not produced the comprehensive, auditable accounting or prosecutorial findings that would be required to declare the matter resolved statewide [4] [3] [5]. Reporters and officials caution that investigations are ongoing and that public reporting to date does not offer a final tally or legal conclusions for the most recent allegations [7] [3].