Fraudulent schemes in taxpayer-funded childcare assistance programs—particularly Minnesota’s Child Care Assistance Program (CCAP)—have exploded into one of the largest welfare fraud scandals in U.S. history, with estimated losses potentially exceeding $9 billion when combined with related feeding and autism programs.

Recent federal and state investigations have uncovered massive networks involving fake daycare sites, wildly inflated enrollment claims, kickback payments to parents, and funds diverted to personal luxury purchases.