The US Department of Health and Human Services (HHS) has moved to freeze federal child care funding to all 50 states, escalating a growing national scandal that began with allegations of widespread fraud in Minnesota’s daycare system. The decision, confirmed by an agency official to ABC News, marks one of the most sweeping federal interventions into child care funding in recent years and signals heightened scrutiny of how billions of taxpayer dollars are distributed and monitored.

According to the unnamed HHS official, federal child care funds will only be released once states demonstrate that the money is being spent legitimately and in compliance with federal guidelines. While the department has not publicly detailed the full scope of documentation required, the move effectively places every state under review, regardless of whether it has been directly linked to fraudulent activity.

HHS spokesman Andrew Nixon clarified that even states and childcare providers “not suspected of fraudulent activity” have been instructed to submit extensive administrative data for evaluation. States where fraud is suspected face more stringent demands, including the submission of attendance records, licensing documentation, inspection and monitoring reports, as well as records of complaints and investigations.

“The onus is on the state to make sure that these funds, these federal dollars, taxpayer dollars, are being used for legitimate purposes,” Nixon said, underscoring the federal government’s position that responsibility ultimately lies with state-level administrators.

The nationwide freeze follows an earlier decision by HHS to halt all child care payments to Minnesota, where the controversy first emerged. Federal authorities........

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