Feds launch 'massive' investigation after viral video alleges Minnesota daycare fraud

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.

Federal agents question a man in Minneapolis

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

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

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.

You May Also Like

DSA Co-Chair Says Dems Silent on Push to Abolish Senate, Presidency - Internewscast Journal

DSA Co-Chair Says Dems Silent on Push to Abolish Senate, Presidency

With all the chatter about “moderate” Democrats supposedly worried that a socialist…
Terrifying Video Shows Bison Chasing Child at Yellowstone National Park on July 28 - Internewscast Journal

Terrifying Video Shows Bison Chasing Child at Yellowstone National Park on July 28

A visit to Yellowstone National Park turned tense when a bison moved…
Oman Rises as Power Broker in Iran-US Strait Showdown - Internewscast Journal

Oman Rises as Power Broker in Iran-US Strait Showdown

WASHINGTON — Iran insists it is not negotiating with the United States,…
Bryan Kohberger prosecutors announce reversal on gag order after Idaho killer's confession

Bryan Kohberger Gets New Lawyer After Filing for Post-Conviction Relief in Idaho Murders Case

Judge approves new lawyer for Bryan Kohberger in Idaho murder trial A…
ICE Detainee Dies at Delaney Hall After Illegal US Reentry - Internewscast Journal

ICE Detainee Dies at Delaney Hall After Illegal US Reentry

A 41-year-old man from El Salvador who illegally re-entered the United States…
ICE detainee who illegally re-entered US after deportation dies at Delaney Hall

ICE Detainee Dies at Delaney Hall After Illegal Reentry

Lawmakers clash over immigration enforcement at Delaney Hall Detention Center Tensions flared…
Naked nutjob who leaped from Brooklyn Bridge and miraculously survived identified

Naked Man Who Survived Brooklyn Bridge Plunge Identified

Police have identified the man who survived a dramatic jump from the…
Hero civilian who fired back at In-N-Out shooter trained in self defense after witnessing another mass shooting

Hero Who Fired Back at In-N-Out Shooter Trained After Mass Shooting

The Good Samaritan praised as a “hero” for opening fire on Idaho…
Washington Man Arrested in Devastating Spokane Wildfire Arson Case - Internewscast Journal

Washington Man Arrested in Devastating Spokane Wildfire Arson Case

A Washington state man was arrested Monday on a first-degree arson allegation…
Charlotte Repeat Offender Charged in Killing Hours After Bond - Internewscast Journal

Charlotte Repeat Offender Charged in Killing Hours After Bond

A convicted killer is accused of opening fire on two men in…
Handwriting Expert Claims Nancy Guthrie Ransom Notes Were Penned by Two Different People - Internewscast Journal

Handwriting Expert Claims Nancy Guthrie Ransom Notes Were Penned by Two Different People

A forensic psychologist says the two ransom notes tied to missing 84-year-old…
Dashcam Video Shows Florida Trooper Pursuing Street Takeover Suspect at 140 MPH - Internewscast Journal

Dashcam Video Shows Florida Trooper Pursuing Street Takeover Suspect at 140 MPH

New Florida Highway Patrol dashcam footage shows the tense moments a trooper…