While the U.S. economy was half asleep over the holidays, many parents still had to work and, thus, many child care centers were still open. Now, low-income families and the child care centers that provide care and education for their children have another stressor on their plate: the threat of funding cuts.
On Dec. 26, 23-year-old YouTuber Nick Shirley and conservative lobbyist David Hoch posted a video to YouTube claiming to surface evidence of a $100 million fraud scandal involving subsidized child care centers in Minnesota. The duo's video eventually resulted in President Donald Trump's administration announcing a freezing of $10 billion in social services funds for five states led by Democrats, including Minnesota.
The authors of this piece take fraud seriously. Still, because we study the limited amount of affordable quality child care nationwide, we know that the ripple effects of Shirley's video could lead to center closures and thousands of families across Minnesota losing access to child care.
When Deputy Secretary of Health and Human Services Jim O'Neill posted to X last week that he had "turned off the money spigot," he was referring to the federal funding Minnesota uses to offer child care subsidies for low-income and moderate-income families. This "spigot" is more like a rusty watering can. The federal subsidy program is underfunded so severely that only 8% of the nation's children who qualify for a subsidy are able to use one.
That's why efforts to freeze funding are so concerning.
This is a preview of Jennifer Bouek and Casey Stockstill's latest column. Read the full column here.
