Michigan has ‘zero tolerance’ for child care fraud, agency says amid push for audit

The Michigan department that oversees child care says it has ‘zero tolerance’ for fraud
Child care providers are under intensified scrutiny from the Trump administration
More than 46,000 children in Michigan use scholarships to pay for child care

The department that oversees pre-K and other child care services in Michigan is defending itself amid heightened national and state scrutiny of government-subsidized child care providers.

The Michigan Department of Lifelong Education, Advancement, and Potential said in a statement Tuesday that it takes fraud seriously and child care programs are audited annually.

“MiLEAP has zero tolerance policy for fraud and anyone trying to abuse the system. The department will take strong action against anyone who tries to abuse funds meant to support families,” the department said in a statement to Bridge.

The comments came days after state Sen. Minority Leader Aric Nesbitt, R-Porter Township, sent a letter to the Office of the Auditor General requesting the office audit the state program.

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“The lack of affordable child care is one of the greatest challenges facing families in Michigan,” Nesbitt said in his Friday letter. “As such, every tax dollar lost to fraud or waste makes it even more difficult for law-abiding Michiganders to get the child care they need.”

Statewide, more than 46,000 children receive child care scholarships from the state that draw on federal funds.

The Trump administration announced last week it was freezing Minnesota’s child care funds after allegations of fraud. The administration also said child care funding to each state was on hold until states provided additional information to the federal government.

So far, Michigan has not reported a funding halt.

MiLEAP said in a Tuesday afternoon statement that “Michigan has not been notified of any changes that would impact our ability to make regularly scheduled child care payments.”

Bridge has requested additional details on if MiLEAP is awaiting a decision from the federal government about funding and when the next payments are expected for providers.

The Trump administration said Tuesday that it is withholding funding for programs that support needy families with children in five Democratic-led states over concerns about fraud.

“For too long, Democrat-led states and Governors have been complicit in allowing massive amounts of fraud to occur under their watch,” US Department of Health and Human Services spokesperson Andrew Nixon said in a statement.

Also, the federal government is rescinding Biden-era rules that required states to pay child care providers based on student enrollment instead of attendance and pay providers ahead of time, the US Department of Health and Human Services announced Monday. The changes must go through a 30-day public comment period.

Even without a funding halt in Michigan, Christina Wood, executive director of Educational Child Care Center (EC3) in Lansing, told Bridge parents are nervous.

“My families are worried,” Wood said. “They rely on this to go to work and to freeze funding based off baseless claims, it’s ridiculous, and it’s terrible for our families.”

MiLEAP said child care providers can get their questions answered by phone at 866-990-3227 or by emailing mileap-cdc-admin@michigan.gov. MiLEAP also encourages providers to check their online billing accounts for the latest updates.

The Associated Press contributed to this report.