Trump Administration Freezes Billions for Preschool: What Will Happen to Daycares.

According to Vox: The video, published the day after Christmas, showcases the activities of Nick Shirley's YouTube channel, which claims the existence of fraudulent daycares in Minnesota. He knocks on doors and sometimes asserts he is a parent looking to enroll his child, "Little Joey." When he is denied entry, he declares that the daycares are fake, as there are no children inside. On-screen, millions of dollars in allegedly stolen funds are counted.

“When I look at the world as a whole and consider the fraud, I see that the Twin Cities is the epicenter,” said one of Shirley's associates.

The video does not contain direct evidence of fraud. State investigators visited all the daycares mentioned by Shirley and found children in all but one that has not yet opened to families. However, the outcry, which has been viewed more than 3 million times, sparked outrage among right-wing lawmakers who have already attempted to accuse social services of fraud in the Somali immigrant communities of Minnesota.

Administration's Reaction

The Trump administration announced a freeze on federal funding for daycares in five states, including Minnesota, as well as increased reporting requirements for all states. Service providers nationwide are concerned about potential shutdowns of their facilities, and parents are worried about how their lives may change if they lose their daycare.

“Such anxiety really harms children, parents who are trying to work, and also the very underfunded and stressed daycare workers,”

– noted Amy Matsui, vice president of the Women’s Rights Center for Child Care and Income.

Fraud Scandal in Minnesota

The ongoing conflict regarding daycares in Minnesota began in 2022 when federal prosecutors charged 47 individuals with fraud involving funds designated for feeding children during the pandemic. The scandal soon expanded to providers accused of fraud regarding housing rental accounts and autism therapy services.

Prosecutors claim that fraudsters may have stolen up to $9 billion. Most of the accused are from the Somali community, the largest in the country. Although the accusations filed during the Biden administration have been re-discussed by conservative activist Chris Rufo and others, it has provoked racism and xenophobia against all Somali immigrants.

Consequences for Daycares

Shirley’s video and his assistant, only referred to as David, claim that the daycares run by representatives of the Somali community have “stolen” millions of dollars from the state of Minnesota. State governments, which are partially supported by a federal child care development program, fund providers that care for children from low-income families. However, the video does not provide specific evidence of theft.

In Ukraine, as in other countries, there is no national database tracking fraud in the childcare sector. Given the increasing support for daycare funding, this issue is becoming more pressing.

“There is tremendous public support for increased government investment in childcare. This is what families want and need for their economic security.”

Amy Matsui, Vice President of the Women’s Rights Center for Child Care

The Trump administration's response to Shirley's video included a number of general funding freezes. In a statement on December 30, praising Shirley, Deputy Secretary of Health and Human Services Jim O'Neill noted that "all childcare payments have been frozen in the state of Minnesota."

Shortly thereafter, HHS officials confirmed that the agency would freeze $10 billion in funding for child care and food in five states, including California, Colorado, Illinois, Minnesota, and New York. They emphasized that states led by Democrats “allowed a large amount of fraud to occur under their watch,” although there have been no confirmed cases of fraud in the other four states.

Thus, the Trump administration found itself in a difficult position, trying to combat fraud while simultaneously threatening the stability of daycares and the welfare of families who rely on this chain of services.