Abbott orders statewide investigations of child care fraud in Texas
Abbott orders statewide investigations of child care fraud in Texas, citing Minnesota scandal
Gov. Greg Abbott (R-TX) ordered two Texas agencies to investigate child care fraud in the state on Monday as the uncovered trend plagues Minnesota.
The governor directed the Texas Workforce Commission and the Texas Health and Human Services Commission to improve their anti-fraud measures by conducting additional site visits of child care service providers and reviewing their data collection efforts, among other actions.
Abbott cited Minnesota’s widening fraud scandal, which the federal government is investigating.
“Recently, the Trump Administration and independent journalists have uncovered potential systematic fraud in subsidized child care systems in states like Minnesota,” he said in a statement, accompanied by a brief letter to the two agencies. “Such fraud will never be tolerated in Texas. Today, I directed Texas state agencies to take proactive steps to prevent, detect, and eliminate misuse of taxpayer funds to protect the integrity of Texas’ Child Care Services Program.”
While Texas already has strong anti-fraud measures in place, as seen in its improper payment rate of 0.43%, Abbott said “more can be done.” By contrast, Minnesota has an improper payment rate of 11%.
Monday’s directive came as Gov. Tim Walz (D-MN) ended his reelection bid for a third term due to the federal scrutiny he’s facing over his handling of the widespread fraud allegations in his state. The White House signaled that the Department of Justice may hold him “criminally liable” for his involvement in the fraud scandal.
HOW MINNESOTA’S SOMALI FRAUD INDUSTRIAL COMPLEX HAS STOLEN MILLIONS FROM MEDICAID
The Trump administration ramped up its investigations of Minnesota’s social services programs after independent journalist Nick Shirley posted a video late last month that showed the extent of the fraud. Somali-run day care centers and other businesses appear to be at the heart of the scandal.
The Texas agencies are expected to provide a progress report on their expanded anti-fraud efforts to the governor’s office on Jan. 30, followed by a final report on Feb. 27. Abbott said he will keep working with agencies in the state’s executive branch to “fight fraud, protect taxpayer dollars, and promote accessible, affordable, high-quality childcare for Texans.”
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