Federal and state authorities have launched coordinated investigations and inspections across Minneapolis following a viral video that alleges millions of taxpayer dollars are being funneled to inactive daycare centers in Minnesota.
Official Responses and Investigations
On Monday, several agents from Homeland Security Investigations (HSI) and U.S. Immigration and Customs Enforcement (ICE) were seen conducting operations in Minneapolis. Department of Homeland Security Secretary Kristi Noem confirmed the federal presence in the area, stating on social media that the agency is working to "deliver results" and ensure taxpayer money is not abused.
On the other hand, FBI Director Kash Patel announced that the bureau has provided additional resources to Minnesota to dismantle large-scale fraud schemes, according to Fox News.
At the state level, Minnesota officials acted quickly to verify the claims. Tikki Brown, Commissioner of the Department of Children, Youth, and Families (DCYF), stated that inspectors were sent immediately to the daycares identified in the video.
However, Brown noted that each of the centers had been inspected within the last six months, with children found present, and no fraud was detected at that time. Consequently, the state has not currently paused payments to these providers.
Regarding the footage showing empty buildings, a manager at the "Quality Learning Center," which was highlighted in the video for having a misspelled sign and allegedly receiving approximately $4 million in funds, told reporters that the facility was not closed but simply opens later in the day, MPR News reported.
The Allegations
The government response was triggered by a 42-minute YouTube video released Friday by independent journalist Nick Shirley. The video, which has garnered millions of views, documents Shirley visiting several Somali-owned daycare centers in Minneapolis that appear largely inactive despite receiving significant government funding. In one instance, Shirley filmed a facility that is supposed to serve roughly 99 children, but seemed empty.
The video has drawn national attention and criticism from high-profile figures, intensifying scrutiny on Minnesota Governor Tim Walz's administration. Critics point to this as another example of oversight failure following the massive $250 million "Feeding Our Future" fraud scandal.
While the video has sparked outrage, some experts urge caution. Jane Kirtley, a media law professor at the University of Minnesota, described the video as "flashy" but noted it lacked concrete facts to back up its broad claims. Meanwhile, the Minnesota Department of Human Services announced it is separately reviewing 80,000 Medicaid claims to flag suspicious billing in high-risk programs, as per KARE11.
