Governor Tim Walz has responded to a growing scandal in Minnesota after a video circulated online, showing an unoccupied daycare center with a misspelled sign that had been awarded millions in federal funds.

Walz asserted he is taking decisive measures to combat the alleged fraud, a statement that came shortly after FBI official Kash Patel disclosed the issue is more extensive than previously believed.

“The governor has been proactive for years in tackling fraud and has consistently sought more authority from the state legislature to enforce stricter measures,” a representative for Walz informed Fox News.

“He has enhanced oversight by initiating investigations into these particular facilities, resulting in the closure of at least one,” the spokesperson added.

Walz has also taken additional steps, including employing an external firm to audit payments to high-risk programs, completely shutting down the Housing Stabilization Services program, appointing a new statewide program integrity director, and backing criminal prosecutions.

Despite these efforts, Walz faces mounting criticism from concerned citizens questioning how he plans to effectively address the allegations of widespread fraud within the state.

Initial reports emerged earlier this month of a massive Covid-era scheme involving the federally funded nonprofit group Feeding Our Future.

At least 78 people, 72 of whom are Somali, have been charged in connection with the illicit plot. 

Walz shared a series of favorable statistics about life in Minnesota in a statement on X after a daycare was accused of stealing $4 million in taxpayer money

On Friday the crisis worsened when independent journalist Nick Shirley shared footage of an apparently empty Minnesota daycare, which reportedly received millions in taxpayer funds

Walz, who ran as Vice President on the Democratic ticket alongside Kamala Harris in 2024, defended his state on Sunday on X and shared four photographs of him interacting with members of the Somali community. 

He wrote about Minnesota: ‘#8 state for safety. #5 state to live in. #3 state for jobs. #2 state to raise a family, and #2 state to retire. 

‘We’ve made progress, but there’s more to do to deliver security, opportunity, and freedom to every Minnesotan. I won’t quit fighting until we’re #1.’

His post came after outrage over the alleged fraud grew on Friday when independent journalist Nick Shirley shared footage of an apparently empty Minnesota daycare, which reportedly received millions in taxpayer funds. 

Footage of the facility, featuring a misspelled sign as ‘Quality Learing Center’, sparked outrage among lawmakers and allegations state authorities allowed the ‘largest fraud in US history’ to go unchecked. 

In response, FBI Director Kash Patel said the FBI has long been aware of fraud allegations in the state and threatened action against perpetrators.

‘The FBI believes this is just the tip of a very large iceberg,’ Patel wrote. 

‘We will continue to follow the money and protect children, and this investigation very much remains ongoing.’ 

Initial reports emerged earlier this month of a massive Covid-era scheme involving the federally funded nonprofit group Feeding Our Future

In a lengthy X post on Sunday, FBI Director Kash Patel said the FBI has long been aware of fraud allegations in the state and threatened action against perpetrators

‘Furthermore, many are also being referred to immigration officials for possible further denaturalization and deportation proceedings where eligible.’

Addressing the allegations made in Shirley’s video, Patel said the ‘FBI is aware of recent social media reports in Minnesota.’

He claimed that the bureau has moving to ‘dismantle large-scale fraud schemes exploiting federal programs.’

‘Fraud that steals from taxpayers and robs vulnerable children will remain a top FBI priority in Minnesota and nationwide.

According to Shirley, the childcare center pocketed $1.9 million from Minnesota’s Child Care Assistance Program (CCAP) in 2025, bringing the total to $4 million. 

Shirley, in his investigation, arrived at the doorsteps of several daycare centers, claiming to be a father looking to enroll his child, but said he never saw any children at the facilities.

He said it was ‘potentially the largest fraud scandal in US history.’ 

Walz ran as Vice President on the Democrat ticket alongside Kamala Harris in 2024

Footage of the facility, featuring a misspelled sign as ‘Quality Learing Center’, sparked outrage among lawmakers and allegations state authorities allowed the ‘largest fraud in US history’ to go unchecked

Trump has been critical of Rep Ilhan Omar amid the ongoing Somali fraud crisis

In his announcement, Patel emphasized that the FBI has been aggressively targeting a massive fraud network that stole COVID-era food scheme.

‘The FBI has toppled a $250 million fraud network that targeted vulnerable children and exposed a ‘large-scale money laundering’ operation,’ Patel said.

‘The investigation exposed sham vendors, shell companies and large-scale money laundering tied to the Feeding Our Future network,’ he wrote. 

‘The case led to 78 indictments and 57 convictions.’

Prosecutors alleged that most of the meals intended for low-income children during the pandemic never existed. Instead, the taxpayer’s money went to luxury homes, cars, jewelry, and real estate abroad. 

Walz shared four photographs of him interacting with members of the community in the post

‘These criminals didn’t just engage in historic fraud, but tried to subvert justice as well,’ Patel wrote.

President Donald Trump criticized Governor Tim Walz for allowing Minnesota to become ‘a hub of fraudulent money laundering activity.’

He said the perpetrators should be ‘sent back to where they came from.’

Later, he said he would be revoking the temporary protected status of the roughly 700 Somali nationals who have it, which prevents them from being deported. 

On Thanksgiving, Trump called Walz ‘seriously retarded’ and also attacked Rep. Ilhan Omar and Minnesota’s immigration policy.