Health and Human Services Secretary Robert F. Kennedy Jr. just dropped a hammer on a flawed system that let childcare funds slip into the wrong hands.
The Biden-era rules, which forced states to pay providers before confirming attendance or even verifying that care was provided, have been scrapped as of Monday, according to Breitbart. This policy reversal under the Trump administration aims to plug holes that bled taxpayer money dry.
Kennedy didn’t mince words about the intent behind these funds. “Congress appropriated this funding to support working families and ensure children have safe places to grow and learn,” he stated in a release.
That noble goal got twisted when loopholes let fraudsters siphon off cash meant for kids. Kennedy added, “Loopholes and fraud diverted that money to bad actors instead,” and now his team is steering it back to families who need it.
The old rules softened oversight in the Child Care and Development Fund, creating a playground for waste and abuse. Federally funded state programs, including some under scrutiny in Minnesota, suffered as a result.
Paying providers based on enrollment lists rather than actual attendance was a recipe for disaster. It’s no surprise that reports of scams, especially in Minnesota, have piled up with billions allegedly lost.
The Trump HHS is rolling out sharp changes to stop this mess. States can now demand payment based on verified attendance and delay funds until care is actually delivered.
Parental choice is also back on the table. States will have the option to issue vouchers directly to parents, cutting out shady middlemen.
Deputy Secretary Jim O’Neill laid it bare when he said, “Paying providers upfront based on paper enrollment instead of actual attendance invites abuse.” Minnesota’s allegations of daycare providers billing for ghost children prove his point.
Assistant Secretary for Family Support Alex Adams echoed that sentiment with precision. “When controls are not in place, bad actors can bill for children who aren’t there,” he noted, pushing for proof that services reach actual kids.
These reforms aren’t just paperwork tweaks; they’re a lifeline for trust in federal childcare investments. Working families and honest taxpayers shouldn’t foot the bill for scams.
Minnesota’s controversy has even shaken up local politics, with Gov. Tim Walz opting out of reelection amid the fallout. That’s a signal this issue cuts deeper than just policy fine print.
The scale of alleged fraud, particularly tied to daycare schemes in Minnesota, shows why oversight matters. Billions reportedly vanished, and that’s money stolen from children’s futures.
This isn’t about punishing providers but about ensuring the system works for those it’s meant to help. Families deserve safe, reliable care, not headlines about swindled funds.
Kennedy’s move sends a clear message that federal dollars won’t be a free-for-all under this watch. If you’re gaming the system, the game just got a lot harder.
