News Story

Lawmaker calls for audit of Michigan child care program after Minnesota fraud scandal

Nesbitt running for governor

Senate Republican Leader Aric Nesbitt has asked the state’s independent auditor general to investigate Michigan’s Child Development and Care Program amid allegations that Minnesota’s child care program is plagued by fraud.

After a YouTuber with a camera alleged fraud in Minnesota, Gov. Tim Walz announced that he would not run for reelection. The video has been watched more than 138 million times. Nesbitt is the first Michigan gubernatorial candidate to call for an audit of Michigan's child care program.

“Finding affordable child care is one of the biggest challenges facing families in Michigan. We must ensure they aren’t being fleeced by criminals like the taxpayers have been in Minnesota,” said Nesbitt, R-Porter Township.

Nesbitt sent a letter to Michigan Auditor General Doug Ringler requesting an investigation of the child care program operated by the Michigan Department of Lifelong Education, Advancement, and Potential. The program, which is meant to help low-income families with the cost of child care, receives more than $540 million in taxpayer support this year.
 

 

Nesbitt OAG Childcare Request 2026-01-02 (1) by mcclallen

A November 2025 report from the auditor showed that the Michigan education agency overseeing child care programs doesn’t pick up phone calls 60% of the time. Michigan Capitol Confidential has asked that department to provide a list of every child care facility in Michigan that receives federal or state money.

“The lack of affordable child care is one of the greatest challenges facing families in Michigan,” Nesbitt’s letter said. “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.”

Federal prosecutors have said that alleged criminals, including some who don’t even live in Minnesota, looted 14 Minnesota-run benefits programs. The estimated fraud could total more than $1 billion and includes $14 million taken from a Minnesota child autism program and $250 million from the Feeding Our Future program.

Michigan Capitol Confidential is the news source produced by the Mackinac Center for Public Policy. Michigan Capitol Confidential reports with a free-market news perspective.