Mississippi Auditor: Millions in TANF childcare funds spent with no attendance tracking

JACKSON, Miss. – Mississippi is funneling millions of dollars in federal welfare funds into childcare programs without tracking whether children actually attend or if the programs improve their lives, according to a report released Tuesday by the Mississippi Office of the State Auditor.

The investigation found that the Mississippi Department of Human Services (MDHS) distributed nearly $11 million in Temporary Assistance for Needy Families (TANF) funds during the 2024 fiscal year to nonprofits for afterschool and childcare services. However, the state paid these organizations fixed amounts regardless of whether a child attended one day a month or every day.

State Auditor Shad White warned that the lack of oversight mirrors systemic failures seen in other regions.

“The childcare fraud scandal in Minnesota has shown just how easy it is for nonprofits to receive government funds intended to help our poorest children and then light that money on fire,” White said. “It’s critical that Mississippi has effective oversight on childcare spending so we don’t repeat the mistakes we’ve seen in other states.”

Key Findings: Funding vs. Reality

The report highlights a significant gap between taxpayer investment and program delivery. Analysts discovered that several programs served less than 50% of the children they committed to support each month yet still received full state funding.

While MDHS collected participant data from the nonprofits, the Auditor’s Office found the records were riddled with errors, including:

• Duplicate student entries
• Misspelled names
• Incorrect physical addresses

Failure to Track Outcomes

The audit also attempted to measure the educational impact of these millions. Although nonprofits were required to collect data on literacy rates and teen pregnancy prevention, the report found that MDHS failed to reliably measure whether any of the programs met the state’s minimum required outcomes.

“Like most Mississippians, I pay for my own children’s childcare,” White said. “If taxpayer dollars are going to serve low-income children, then the state needs to ensure that the money goes as far as it can and that kids are actually attending these centers.”

This report marks the first in a planned series of investigations into taxpayer-funded childcare programs across the state. The full findings are available on the State Auditor’s website under the “Reports” tab by searching “Afterschool care.”