Federal officials investigate alleged child care fraud in Minnesota
Federal officials, including the FBI, Department of Homeland Security, and Health and Human Services under the Trump administration, are investigating allegations of widespread child care fraud in Minnesota’s Child Care Assistance Program (CCAP). The probe intensified after a viral YouTube video by Nick Shirley claimed $110 million in fraud at Somali-run daycares, prompting door-to-door checks and a freeze on federal funding to the state.
Nick Shirley’s December 2025 video visited 10 allegedly empty daycares, alleging no services despite receiving taxpayer funds; it amassed over 127 million views and drew statements from FBI Director Kash Patel and DHS Secretary Kristi Noem.
Homeland Security agents conducted on-site investigations in Minneapolis, while HHS paused all federal child care payments to Minnesota pending audits; Attorney General Pam Bondi noted 98 related charges, mostly against Somali individuals, with more expected.
Minnesota’s Department of Children, Youth, and Families Commissioner Tikki Brown confirmed re-inspections of the 10 sites, noting prior unannounced visits found children present and no fraud evidence; 55 CCAP investigations remain open, but none paused payments at featured centers.
Federal prosecutors cite $9 billion in potential Minnesota social program fraud since 2018, including COVID-era misuse; Senate Republicans demanded records on licensing and visits.
