Trump Vows to Recoup $18 Billion in Alleged Minnesota Childcare Scam Amid Nationwide Funding Freeze

President Donald Trump on Wednesday night vowed that “a great new year” would include getting “to the bottom” of government fraud in Minnesota and other blue states. During his New Year’s Eve celebration at Mar-a-Lago, Trump labeled alleged fraud in Minnesota as “a giant scam,” claiming the administration would recover stolen funds. “They stole $18 billion!” Trump told attendees. “That’s just what we’re learning about. That’s peanuts.”

The president asserted that the issue is not isolated to Minnesota, stating California, Illinois, and New York are even worse. “We’re going to get to the bottom of all of it,” Trump said. “We’re going to get that money back. It’s all coming back.”

Hours after Trump’s remarks, the Department of Health and Human Services announced a freeze on federal childcare funding nationwide until states can demonstrate legitimate spending. The move followed Deputy HHS Secretary Jim O’Neill’s decision to halt payments to Minnesota specifically as part of an administration crackdown on alleged fraud.

The controversy gained traction following a viral video investigation by influencer Nick Shirley, who claimed to visit multiple childcare centers during the week and found them shut down or empty. Shirley accused Gov. Tim Walz, a Democrat, of enabling a system where taxpayer dollars allegedly funded nonoperational facilities, citing roughly $110 million in questionable spending.

Republicans have argued that such allegations underscore the need for federal oversight and explain why Washington must stop writing blank checks to states that refuse accountability.