Walz defends record as viral video fuels Minnesota daycare fraud claims

Minnesota Gov. Tim Walz’s office is pushing back against fraud allegations after a viral video showed visits to multiple childcare centers in the state, including one that allegedly received millions of dollars in state funding despite appearing largely inactive.

Responding to questions about the allegations and the video posted by independent journalist Nick Shirley, a spokesperson for the governor told Fox News that Walz has spent years working to “crack down on fraud” and has taken steps to strengthen oversight of state programs, including initiating investigations into several facilities.

“The governor has worked for years to crack down on fraud and ask the state legislature for more authority to take aggressive action,” the spokesperson said. “He has strengthened oversight — including launching investigations into these specific facilities, one of which was already closed.”

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The spokesperson added that Walz has “hired an outside firm to audit payments to high-risk programs, shut down the Housing Stabilization Services program entirely, announced a new statewide program integrity director, and supported criminal prosecutions.”

The response follows the release of a 42-minute video by Shirley, posted Friday on X and YouTube, documenting visits to several daycare centers in the blue state, including a location on Nicollet Avenue in Minneapolis.

In the video, Shirley and another 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 is reportedly supposed to account for 99 children and received roughly $4 million in state funds.

During a Sunday appearance on Fox News’ “The Big Weekend Show,” Shirley said the alleged fraud in Minnesota was “so obvious” that a “kindergartner could figure out that there is fraud going on.”

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Shirley also suggested other journalists may be reluctant to pursue similar reporting out of fear of being labeled “Islamophobic” or “racist.”

“Fraud is fraud, and we work too hard simply just to be paying taxes and enabling fraud to be happening,” he said. 

The video has sparked widespread backlash, drawing criticism of Walz throughout the weekend from several high-profile figures, including Vice President JD Vance, Rep. Mike Lawler, R-N.Y., Donald Trump Jr. and Elon Musk.

The White House on Sunday 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.

Meanwhile, FBI Director Kash Patel said the agency has surged additional personnel and investigative resources to Minnesota as part of an ongoing effort to “dismantle large-scale fraud schemes exploiting federal programs.”

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The video went viral this week amid the burgeoning scandal enveloping the Walz administration that notably included at least $1 billion lost to alleged social services fraud largely tied to the Somali community in the Twin Cities.

Fox News’ Connor Hansen and Charles Creitz contributed to this report.