While states like Ohio are taking action to root out fraud at day cares, Pennsylvania Gov. Josh Shapiro has taken no action.
With other states scrutinizing day cares in the state in an effort to identify and root out fraud similar to what was recently discovered in Minnesota, questions have arisen over whether it is happening on a larger scale than previously known.
Yet, Pennsylvania Governor Shapiro, whose state has nearly 7,500 daycare and childcare providers, has yet to pursue any executive action to ensure those facilities are operating within the bounds of the law, even when the Minnesota investigation has a direct connection to Pennsylvania. Among the Minnesota investigation and indictments, two Philadelphia men, Anthony Wadell Jefferson and Lester Brown, were charged. They are alleged to have travelled to Minnesota to set up a fake day care then submit $3.5 million in fraudulent claims to Medicaid.
In fact, Shapiro hadn’t commented on the scandal until Minnesota Governor Tim Walz announced he will not seek reelection this fall, at least partially due to the day care scandal. In a brief statement online, Shapiro praised Walz as “a good man” who has endured “disgusting personal attacks” while Somali fraudsters fleeced the state for potentially billions of dollars.
The Shapiro administration, via the Department of Human Services, said the childcare funding situation remains status quo despite the new federal guidelines that require payments to day care centers to be based on attendance rather than enrollment. A Biden-era rule allowed a day care center’s enrollment to be used for funding parameters.
In Pennsylvania, childcare providers must meet health, safety, and operational standards
set by the Department of Human Services, though accreditation beyond those requirements remains voluntary. There is a history of prosecuting childcare fraud in Pennsylvania, with one woman having pled guilty in 2014 to wire fraud in connection with starting a day care using an individual with no criminal background to obtain a license with the state.
While the Shapiro administration’s inaction continues, lawmakers in Ohio are responding to the scandal. State Rep. Josh Williams is calling for unannounced inspections of daycare centers in the Columbus area amid allegations that some billed for children who were not actually present.
Lawmakers have urged audits, payment suspensions where fraud is suspected, and referrals for prosecution. Williams has argued that enforcement limitations and structural constraints weaken oversight and has warned that tight-knit communities with internal “codes of silence” can make coordinated fraud more difficult to uncover.
Observers say further exposure of similar schemes may depend heavily on independent reporting rather than traditional institutions. Columnist Jarrett Stepman has credited citizen journalists, including independent reporter Nick Shirley, with drawing attention to allegedly nonoperational daycare centers receiving public funds. Supporters argue such reporting has forced accountability, while critics warn it can become politicized.
At the federal level, the Department of Health and Human Services recently froze all childcare payments to Minnesota after concluding that millions of dollars may have gone to fraudulent or inactive providers. Deputy Secretary Jim O’Neill said future payments nationwide will require proof that services were delivered, and the agency has launched a fraud-reporting hotline.
Minnesota officials have criticized the move as politically motivated, while HHS maintains the state receives roughly $185 million annually to serve about 19,000 children.
