Federal Agencies Investigate Alleged Fraud in Minnesota Child Care Centers

Federal authorities are investigating alleged fraud in Minnesota's child care centers following a viral video by YouTuber Nick Shirley.

Shirley's 42-minute video, posted on December 26, 2025, alleges that several child care facilities in Minnesota received substantial public funding despite appearing inactive. The video has garnered over 1 million views on YouTube and over 100 million on X (formerly Twitter).

In response, the Department of Homeland Security (DHS) and the Federal Bureau of Investigation (FBI) have initiated investigations. DHS Secretary Kristi Noem stated that federal officials are conducting a fraud investigation in Minneapolis. FBI Director Kash Patel emphasized the bureau's commitment to addressing fraud that affects taxpayers and vulnerable children.

Minnesota officials have acknowledged the concerns raised by the video. Tikki Brown, Commissioner of the Department of Children, Youth, and Families, noted that while there are questions about the methods used in the video, the concerns about fraud are taken seriously. Brown added that each facility mentioned in the video has been visited at least once in the past six months as part of the state’s licensing process, with annual inspections conducted without advance notice to assess normal operations.

The investigations are part of a broader effort to address fraud in Minnesota. Earlier this month, First Assistant U.S. Attorney Joe Thompson reported that up to half of the $18 billion in federal funds allocated to 14 Minnesota-run programs since 2018 may have been stolen through extensive fraudulent schemes.

The situation has also drawn political attention. Vice President JD Vance praised Shirley's video, stating that it was more impactful than mainstream journalism.

As investigations continue, authorities are working to determine the extent of the alleged fraud and implement measures to prevent future occurrences.