A Department of Health and Human Services spokesman also reiterated the funding is on hold to all states until they provide more verification about the programs.
Health and Human Services announced Monday that it plans to change federal rules around the program.
Among the proposed changes: It would allow states to pay providers based on attendance rather than merely enrollment and pay providers after care is delivered rather than in advance.
“Paying providers upfront based on paper enrollment instead of actual attendance invites abuse,” Health and Human Services Deputy Secretary Jim O’Neill said in a statement.
All 50 states will have to provide additional levels of verification and administrative data before they receive more funding from the Child Care and Development Fund, according to an HHS spokesperson.
Minnesota will have to provide even more verification for child care centers that are suspected of fraud, such as attendance and licensing records, past enforcement actions and inspection reports.
In his social media post last week, O’Neill said all Administration for Children and Families payments nationwide would require “justification and a receipt or photo evidence” before money is sent.
