Federal authorities launched an extensive investigation in Minnesota on Monday, spurred by a recent online video from an independent journalist that purportedly exposes daycare center fraud.
Both Homeland Security Investigations (HSI) and U.S. Immigration and Customs Enforcement (ICE) were actively involved in Minneapolis, as noted by Homeland Security Secretary Kristi Noem on X.
Fox News Digital has contacted the Department of Homeland Security, ICE, and the FBI for additional comments.
On Monday, Homeland Security investigators were extensively probing Minneapolis after a weekend video emerged, alleging fraud in daycare operations.
Kristi Noem shared a video online depicting HSI agents inquiring outside a building, though the nature of the business involved remained unspecified.
Another clip released by ICE showcased agents conducting door-to-door investigations at multiple locations.
“The American people deserve answers on how their taxpayer money is being used and ARRESTS when abuse is found. Under the leadership of @Sec_Noem, DHS is working to deliver results,” the agency wrote on X.
Still reeling from a $250M fraud scheme in which several people have been charged, Minnesota was thrust into the spotlight again this weekend after independent journalist Nick Shirley on Friday posted a 42-minute video on YouTube, documenting visits to several daycare centers in the blue state.
Independent journalist Nick Shirley (Fox News)
In one clip, Shirley and a man are seen at what appears to be a largely inactive childcare facility.
The building also displays a misspelled sign reading “Quality Learing Center,” even though the center reportedly is supposed to account for 99 children and received roughly $4 million in state funds.
The video immediately sparked widespread backlash, drawing criticism of Minnesota Gov. Tim Walz from several high-profile figures, including Vice President JD Vance, Rep. Mike Lawler, R-N.Y., Donald Trump Jr. and Elon Musk.
On Sunday, the White House reposted an X post from Education Secretary Linda McMahon, who called the alleged fraud a “breathtaking failure that has happened under the watch” of Walz.
Minnesota Gov. Tim Walz has said “Minnesota is a prosperous state, a well-run state.” (AP Photo/Meg Kinnard)
During a Sunday appearance on Fox News’ “The Big Weekend Show,” Shirley said the alleged fraud was “so obvious” that a “kindergartner could figure out that there is fraud going on.”
“Fraud is fraud, and we work too hard simply just to be paying taxes and enabling fraud to be happening,” he said.
Over the weekend, FBI Director Kash Patel said the agency surged additional personnel and investigative resources to Minnesota as part of an ongoing effort to “dismantle large-scale fraud schemes exploiting federal programs.”
At the time of the video’s release, Walz was already under heavy fire amid the scandal enveloping his administration that notably included at least $1 billion lost to alleged social services fraud largely tied to Minneapolis’ Somali community.
Fox News Digital has reached out to the governor’s office for comment, but they did not immediately respond.
