Former First Lady Jill Biden visited Minnesota in February 2022 to promote nearly $40 billion in national childcare funding from the American Rescue Plan Act and praised Gov. Tim Walz’s efforts supporting families. Local reporting indicates Minnesota daycare centers received roughly $500 million in 2021. A subsequent nonpartisan audit of the Minnesota Department of Human Services found more than $425 million in grants disbursed to 830 organizations between mid-2022 and late 2024 with inadequate oversight, missing documentation, and training shortfalls. The findings have intensified scrutiny and political fallout as broader fraud investigations continue.
Flashback: Jill Biden Highlighted Billions for Childcare in 2022 Minnesota Visit as State Faces Audit and Fraud Allegations
The Minnesota state capitol building in St. Paul.
Former First Lady Jill Biden visited Minnesota in February 2022 to spotlight billions in federal childcare investments included in the Biden administration’s COVID-era relief package. Speaking at the University of Minnesota’s Child Development Laboratory School, she praised Governor Tim Walz for his leadership and emphasized the role of childcare in supporting families and the broader economy. Then–Health and Human Services Secretary Xavier Becerra joined the appearance.
What Biden Said
"We helped states like Minnesota safely keep open childcare centers and family childcare providers and boost pay for their workers," Biden said. "We supported high quality providers that enrich children's lives, and we helped make them more affordable."
Funding Background
The investments Biden promoted came from the 2021 American Rescue Plan Act (ARPA), a $1.9 trillion relief bill that allocated nearly $40 billion for childcare nationwide. Local reporting later noted Minnesota daycare centers received roughly $500 million in federal childcare funds in 2021.
Recent Audit Findings
Nearly four years after the visit, a nonpartisan audit by Minnesota’s Office of the Legislative Auditor identified significant oversight and internal control problems within the Minnesota Department of Human Services’ Behavioral Health Administration (BHA) grant program. The audit examined grant activity from July 1, 2022, through Dec. 31, 2024, and found that DHS distributed more than $425 million in grants to 830 organizations—most nongovernmental—without adequate documentation or monitoring.
Minnesota Gov. Tim Walz announces he will not seek re-election during a news conference at the State Capitol in St. Paul Jan. 5.
Specific audit findings included missing progress reports, incomplete or absent records of required monitoring visits, and widespread staff concerns about training and grant management capacity. In an employee survey cited by auditors, 73% of respondents said they had not received the training needed to properly administer and manage grants. One staff comment said, "Executive leadership has repetitively shown staff that they won’t take the staff’s concerns or questions seriously until something serious happens or it makes the news."
Allegations, Political Fallout, and Legal Scrutiny
The audit intensified scrutiny amid broader fraud allegations affecting Medicaid and childcare funding in Minnesota. Prosecutors and news reports have suggested the fraud could be substantial—some estimates have cited figures as high as $9 billion—though investigations are ongoing. The controversy has contributed to political fallout in the state, and Governor Tim Walz announced he would drop his re-election bid amid the mounting controversy.
Responses and Reporting
Some reports have alleged that a small number of state political figures received donations from individuals now accused in the fraud investigations; other reporting has raised concerns about alleged retaliation against whistleblowers. News outlets, including Fox News Digital, reported attempts to contact representatives for Jill and Joe Biden for comment but did not receive responses in time for publication.
Context: The situation remains under investigation. Audit findings identify management and oversight weaknesses but do not themselves determine criminal liability. Ongoing inquiries by prosecutors and additional reviews will clarify the scope and causes of any misuse of funds.
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