India, Dec. 31 -- The U.S. Department of Health and Human Services has frozen all child-care payments to Minnesota amid serious allegations that the state "funnelled millions of taxpayer dollars to fraudulent daycares over the past decade."

HHS Deputy Secretary Jim O'Neill announced the payment freeze on a X post, describing the move as an urgent measure to stop "the misuse of taxpayer funds" after Nick Shirley's video went viral.

O'Neill also said that he has "activated our defend the spend system for all ACF payments. Starting today, all ACF payments across America will require a justification and a receipt or photo evidence before we send money to a state."

The administration also demanded a comprehensive audit of Minnesota's childc...