The move impacts the state's Child Care Assistance Program (CCAP), which provides subsidies to low-income families to help cover the cost of child care. The exact amount of funds being frozen was not immediately disclosed.

Minnesota Governor Tim Walz responded to the announcement via a post on X, accusing the Trump administration of politicizing the issue. Walz acknowledged that fraud is a serious problem that the state has been actively addressing for years. "He's politicizing the issue to defund programs that help Minnesotans," Walz said.

The decision follows a series of fraud schemes uncovered in recent years within Minnesota's CCAP. A 2019 report by the state's legislative auditor highlighted vulnerabilities in the program that allowed for fraudulent activities. State Sen. Michelle Benson reacted to the report at the time, emphasizing the need for stronger oversight and accountability.

The Trump administration's action raises concerns about the potential impact on Minnesota families who rely on child care assistance. Advocates for low-income families worry that the freeze could limit access to affordable child care, potentially forcing parents to leave the workforce or seek out less reliable care options.

The state of Minnesota has been working to implement stricter controls and oversight measures to combat fraud within the CCAP. These measures include enhanced background checks for child care providers, increased monitoring of program spending, and improved data analytics to detect suspicious activity.

It remains unclear how long the freeze on child care funds will remain in effect. The Trump administration has indicated that it will reassess the situation once it is satisfied that Minnesota has taken adequate steps to address the fraud concerns. The Governor's office has stated that they are in communication with federal officials to resolve the issue and ensure that eligible families continue to receive the child care assistance they need.