Allegations of childcare fraud in Minnesota — first brought to national attention by independent journalist Nick Shirley — have led to heightened federal scrutiny and significant consequences. President Donald Trump has since claimed fraud in California may be even worse and announced that a federal fraud probe is underway. Following those statements, the U.S. Department of Health and Human Services froze $10 billion in federal childcare funding affecting five Democrat-run states: California, Colorado, Illinois, Minnesota, and New York. The Trump administration says the freeze is tied to concerns it describes as rampant fraud and improper payments. As the scrutiny expands to California, Amy Reichert, chairwoman of Restore San Diego, says her investigation has raised serious questions about oversight, accountability, and potential misuse of childcare funds in the state.
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