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Gov. Greg Abbott sent a letter Monday ordering Texas state agencies to investigate possible child care funding fraud, following a major Minnesota social services scandal that cost taxpayers millions.
“Recently, the Trump administration and independent journalists uncovered potential systematic fraud in state subsidized child care systems. like Minnesota“Abbott said in a statement. “Such fraud will never be tolerated in Texas. Today, I directed Texas state agencies to take proactive steps to prevent, detect and eliminate abuse of taxpayer dollars to protect the integrity of the Texas child care program. »
Abbott’s letter was addressed to Texas Workforce Commission (TWC) Chairman Jose Esparza and Texas Health and Human Services Commission (HHSC) Executive Commissioner Stephanie Muth to lead the investigation. Both agencies have broad powers to strengthen fraud prevention efforts in the state’s child care program and regulate facilities.
The agencies will have until Feb. 27 to submit a final report describing how they implemented anti-fraud measures and investigated any potential misuse of Texas taxpayer dollars.
HOW FEARS OF BEING LABELED “RACIST” HELPED “PROVIDE COVER” FOR EXPLOSION OF MINNESOTA FRAUD SCANDAL
Texas Gov. Greg Abbott is asking two Texas agencies to investigate any misuse of taxpayer dollars in the state’s child care programs. (Getty Images)
Abbott noted that Texas already has a relatively low “improper payment rate” of 0.43 percent, compared to about 11 percent in Minnesota, thanks to strong anti-fraud processes agencies already have in place.
Although agencies already conduct routine audits of providers and in-person visits to facilities, “more can be done to protect Texas children and taxpayers,” Abbott said in the letter.
CRITICS WARN MINNESOTA LEGISLATION NOW TAKES EFFECT PUTS INTO ‘NEXT BILLION-DOLLAR FRAUD’
Minnesota Gov. Tim Walz is facing increasing scrutiny over the state’s handling of widespread fraud in several public assistance programs. (Tibrina Hobson/Getty Images)
The HHSC and TWC will provide a progress report to the governor’s office on January 30, followed by a final report in late February.
“I will continue to work with executive agencies to combat fraud, protect taxpayer dollars, and promote accessible, affordable, high-quality child care for Texans,” Abbott added..
The move comes just hours after Minnesota Gov. Tim Walz announced he was suspending his re-election campaign amid allegations the state attempted a cover-up. widespread fraud in the social programs of his State.
The scandal, which broke in early December, involved individuals from the Somali-American community accused of defrauding public assistance programs.
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While these schemes began with the Feeding Our Future case, which allegedly exploited a federally funded child nutrition program during the pandemic, investigators have since uncovered what they describe as a web of interconnected fraud spanning multiple industries, including child care, Medicaid, housing and autism services.
