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

Trump spotted with golf star Bryson DeChambeau, Mikayla Demaiter at Camp David

Trump Spotted With Bryson DeChambeau, Mikayla Demaiter at Camp David

President Trump was seen at Camp David alongside golf legends Gary Player…
Lindsay Clancy fixation and alleged plot to poison husband emerge as accused mom claims psychosis

Alleged Killer Corie Walsh Barred From Home, Risk May Change

An Illinois judge has determined that Corie Walsh is too great a…
Lawsuit says Anthropic, OpenAI, SpaceXAI and Google made illegal agreement on AI development slowdown

Lawsuit Alleges Anthropic, OpenAI, SpaceXAI and Google Made Illegal AI Development Slowdown Pact

Anthropic, OpenAI, SpaceXAI and Google are accused in a new lawsuit of…
DOJ charges 16 in illegal voting probe across multiple states

DOJ Charges 16 in Illegal Voting Investigation Spanning States

The Department of Justice has charged 16 people across several states in…
animals at the Lake Hughes, California, Rock ‘N’ Pawz animal rescue

California Animal Rescue Operator Faces Felony Charges Over Alleged Inhumane, Unsanitary Conditions

A California animal rescue operator could spend as many as 24 1/2…
'Something Bad is Going to Happen': Ex-Nurse Blows the Whistle on Tennessee Hospital for Drug Mix-Up

Ex-Nurse Warns of Tennessee Hospital Drug Mix-Up: ‘Something Bad Is Going to Happen’

A medication error at a Nashville hospital that left four patients critically…

Chicago Weather Today: River Swim Canceled, Flood Watch Issued Ahead of Bears-Vikings

CHICAGO () — Organizers announced Sunday morning that the Chicago River Swim…
Ambassador Mike Waltz lays out ‘America First’ vision for US leadership at the UN

Waltz Warns Iran Sanctions Evaders, Touts Greenland Deal

President Donald Trump is heading back to the United Nations this week,…
Dems' polling lead is smaller than it was in 2018 — when blue wave failed to flip Senate

Democrats’ Polling Edge Trails 2018, When GOP Held Senate

Democrats hold a far narrower advantage over Republicans in the fight for…
The Kingsland Police Department in Kingsland, Ga.

Former Kingsland Police Sergeant Arrested After Allegedly Stealing Truck From Dealership

The Georgia Bureau of Investigation said the former sergeant allegedly took a…
EXCLUSIVE: Russian document reveals sweeping Iran plan spanning nuclear, finance and aviation

Russian File Reveals Iran Plan: Nuclear, Finance, Aviation

A nonpublic 2024-2026 roadmap details Moscow and Tehran’s plans to expand financial,…
Thousands of volunteers hit LA beaches in massive coastal trash cleanup

Thousands Join Massive Coastal Trash Cleanup Across Los Angeles Beaches

Thousands of Los Angeles County residents set aside their usual Saturday routines,…