DHW ramps up work to prevent fraud, waste, and abuse in Idaho Child Care Program

BOISE, Idaho (KIFI) — The Idaho Department of Health and Welfare is launching a major crackdown on child care subsidy mismanagement, aiming to eliminate fraud, waste, and abuse within the Idaho Childcare Program.

In coordination with Governor Brad Little, the DHW is reallocating internal staff to conduct aggressive reviews of past payments and taking corrective actions, including terminating providers found violating state standards.

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The heightened oversight comes after accusations of widespread fraud in Minnesota child care centers in order to obtain federal funds. Those allegations gained national attention following a viral video by YouTuber and citizen journalist Nick Shirley, boosted by Vice President JD Vance and billionaire Elon Musk, which claimed several Minnesota-based Somali-run childcare centers were receiving state and federal funds while no children attended the facilities.

In response, two Idaho Republican lawmakers requested that the federal government withhold $14 million in child care funding until the state, citing "systemic vulnerabilities" similar to those in Minnesota.

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Following this pressure from state lawmakers, the DHW has already taken 45 enforcement actions, ranging from the suspension of daycare licenses to permanent termination from the subsidy program.

DHW Director Juliet Charron emphasized that the department is prioritizing 'proactive prevention and detection efforts' to save on future recovery costs and maintain public trust.

“Safeguarding taxpayer dollars that support working families and vulnerable children is critical,” Charron stated. “Any bad actors will be prosecuted to the fullest extent of the law.”

DHW Staff made 93 referrals for training to business practices. The most common issues that were encountered during these evaluations were:

• Failure to maintain records/insufficient records of use of grant funds
• Missing or incomplete attendance records
• Receiving taxpayer funds for staff who did not meet eligibility requirements

Of the 45 recent enforcement actions, 29 stemmed from serious health and safety violations. The remaining 16 cases involved a mix of safety failures and suspicious business practices that may constitute fraud, according to the release.