Republican Governor Greg Abbott has directed Texas agencies to investigate potential fraud in the state’s child care subsidy system, citing widespread abuses uncovered in Minnesota and warning that similar misconduct will not be tolerated in Texas.
“Recently, the Trump Administration and independent journalists have uncovered potential systematic fraud in subsidized child care systems in states like Minnesota,” Abbott said in a statement on Monday.
“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’s Child Care Services Program.”
Abbott’s letter was sent to Texas Workforce Commission (TWC) Chairman Jose Esparza and Texas Health and Human Services Commission (HHSC) Executive Commissioner Stephanie Muth, instructing both agencies to lead the fraud-prevention review.
The two agencies oversee the state’s child care services program and regulate licensed facilities.
The governor directed the agencies to submit a final report by February 27 detailing new anti-fraud safeguards, investigative actions, and any findings related to potential misuse of Texas taxpayer dollars.
An interim progress update is due January 30.
Abbott noted that Texas currently reports an “improper payment rate” of just 0.43 percent, far below Minnesota’s estimated 11 percent.
The governor also credited existing audit and enforcement systems for helping deter abuse.
However, he said additional scrutiny is warranted in light of recent developments.
While TWC and HHSC already conduct routine provider audits and in-person site inspections, “more can be done to protect Texas children and taxpayers,” Abbott wrote.
“I will continue to work with executive branch agencies to fight fraud, protect taxpayer dollars, and promote accessible, affordable, high-quality childcare for Texans,” he added.
The directive comes hours after Minnesota Gov. Tim Walz announced he was suspending his re-election campaign amid allegations that state officials attempted to conceal extensive fraud within social-services programs.
The Minnesota scandal, first brought to national attention in early December, has centered on individuals within the Somali community accused of orchestrating large-scale fraud schemes across multiple programs.
What began with the “Feeding Our Future” case, involving alleged exploitation of a federal taxpayer-funded child-nutrition program during the pandemic, has since expanded into a sprawling investigation touching child care subsidies, Medicaid services, housing programs, and autism-care funding, according to investigators.
Abbott’s order signals that Texas intends to move aggressively to identify vulnerabilities before similar schemes can take root.
READ MORE – Ad Emerges for ‘Child Actors’ to Fill Minnesota ‘Daycare’ amid Somali Fraud Scandal
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