According to the police in Memphis, a city located along the US Mississippi River, the video was shared online showing the two children getting out of pet kennels in the 3700 block of Elvis Presley Blvd Saturday evening.
Leimome Cheeks, 62, was charged with two counts of child endangerment.
The children told authorities that Cheeks claimed there wasn't enough room for them to sit safely in a seat.
Cheeks told police that she traveled with the children in the kennel from Collierville to Whitehaven because there was no room for them in the auto. It was reportedly 95 degrees that day.More news: Fans wonder whether LeBron's injured hand cost the Cavs a championship
Neighbors said they were shocked by the incident and said Cheeks recently bought two puppies, which is why the kennels were in her vehicle. She seems like a nice lady.
"I think she needs some help".
A concerned citizen shot the video and forwarded it to the police.
According to Local Memphis, Nikita Blake, another of Cheeks' neighbours, added: "It's very sad".More news: Trump adviser says Trudeau 'stabbed us in the back' at G7 summit
"I mean it could be an honest mistake".
The children told police there wasn't much air in the kennels and they were very hot. "If she did that, then that's out of character for her", one neighbor said.
Ms Cheeks can be seen opening the cage doors to the kennels as the children hop out. "You looking at that video, you see she opened up the cage let the kids out the cage out the trunk of the vehicle, I mean it don't look good".
An investigation has been launched by Children Services and Memphis Police.More news: #CanadianGP triumph means a lot, says Vettel in his 50th F1 win
Cheeks is scheduled to appear in court Monday morning.