Twin Cities day cares, families concerned about announced federal funding freeze
Preparing to welcome kids back to her day care centers after some time off around the holidays, Monique Stumon, director of the School Readiness Learning Academy in Minneapolis, doesn't know what to expect as 2026 begins.
"I call the help line with CCAP to ask some questions about billing. There was no information available," Stumon said.
She's referring to Minnesota's Child Care Assistance Program, which officials say supports 23,000 children and 12,000 families in accessing health care, and invested $306.6 million for affordable child care for the state in fiscal year 2024.
In the wake of YouTuber Nick Shirley's claims that Minneapolis-area day cares are taking government funding without providing a service in return, the Trump administration is pledging to freeze federal dollars attached to the program. For the current fiscal year, ending in September 2026, the federal government's share of the program is expected to total $218 million, with Minnesota contributing $155 million, according to state projections.
Shirley's video features him going to 10 day care centers and claiming they are empty. On Friday, the state's Department of Children, Youth, and Families responded to the video, revealing the results of its own investigation conducted this week.
The state agency in a news release said a facility mentioned in the video has been closed since 2018, and that investigators with the Office of Inspector General found children at eight other facilities while conducting compliance checks this week. One of the facilities that underwent an inspection did not have children present because it was not yet open for the day when officials were at the site.
Day care providers who say they are following the rules don't know when exactly the money will be cut off and what can be done to stop it. Stumon said that about 80% of the children at her day care, which has been licensed since 2009 and faces no fraud allegations, rely on CCAP. Stumon estimates they'd only last a month before needing to close their doors if funding were to end now.
"I'm concerned that children will be left home alone. I'm concerned about the school agers that come in here every day after school because their parents have to work," Stumon said.
She noted that she was able to bill the program as of Friday morning, but isn't sure what will happen next week.
Nautica Vaughn of St. Paul, whose children attend day care, says she relies on the program. With it, she pays $27 per child.
"It's going to be hard because if I don't have anybody to watch my kids, I cannot work," she said.
The state agency in an email, which was sent Friday to child care providers and shared with The Associated Press by multiple providers, said it has until Jan. 9 to submit information demanded by the U.S. Department of Health and Human Services' Administration for Children and Families. The information requested includes:
- Total amount of Child Care and Development Fund or Temporary Assistance for Needy Families child care funds received by five specific child care centers.
- For any of the specifically named centers that did receive CCDF or TANF funds, the state must provide specific documentation around areas like attendance, inspections and assessments.
- Complete CCDF administrative data for all recipients, including name, address, social security number, date of birth and any state-issued identification numbers used for program administration.
- Information related to alleged fraud networks and oversight failures.
- Comprehensive list of all CCDF Funded providers and intermediaries, including total CCDF funding received.
The state agency has not disclosed the five child care centers mentioned in the above bullet points, and said federal officials are looking for each of those data points between 2022 and 2025.
State officials added that there will "be a temporary restriction for Minnesota to draw down CCDF federal reimbursement" and that more information on the limitation will be given on Monday.