As of 2025, a significant controversy has erupted in Minnesota, centering around allegations of widespread fraud in the state's child care assistance program. The scandal involves several Somali daycare centers that have received substantial state funding despite apparent irregularities. The issue was brought to light by a YouTuber who released a 42-minute viral video documenting visits to several Minneapolis-area child care centers that appeared deserted. This revelation has sparked federal scrutiny and political reactions, prompting the Trump administration to suspend $5.5 million in funds .
The video, released by independent journalist Nick Shirley on 2025 December 26, has gone viral, exposing several daycare centers in Minnesota that appear to be operating without children despite receiving millions in state funding. The investigation has drawn national attention and raised questions about the state's oversight of its social service programs. One of the centers highlighted in the video was reported to have misspelled "learning" on its front door, further raising suspicions about its legitimacy. The daycare centers in question reportedly received a substantial amount of taxpayer funds, with one center allegedly receiving $4 million. This has led to calls for accountability from state leaders, including Minnesota Governor Tim Walz .
The Minnesota Department of Human Services (DHS) has confirmed that its Office of Inspector General has 62 active investigations into family child care and child care centers, indicating the scope and seriousness of the issue. Critics argue that problems ranging from daycare funding to other public assistance programs have gone unchecked by state leadership. This has led to concerns about the potential misuse of government funds and the need for stricter oversight and accountability .
In response to the growing scandal, political leaders have called for immediate action. Tom Emmer, a prominent political figure, has expressed concerns and demanded answers from Governor Walz. The federal scrutiny and political reactions highlight the broader implications of the fraud allegations, which may have cost taxpayers billions of dollars. The scandal not only raises questions about the integrity of Minnesota's social service programs but also underscores the need for more rigorous oversight and transparency in public funding .