The Department of Homeland Security has deployed investigators to Minneapolis to conduct a large-scale investigation into alleged childcare fraud following a viral investigative report that raised questions about the operation of numerous daycare facilities across Minnesota.
Homeland Security Secretary Kristi Noem confirmed the federal response after Homeland Security Investigations agents were seen questioning individuals connected to suspected daycare operations in the city.
The investigation follows reporting by independent journalist Nick Shirley, whose video documented multiple childcare facilities that appeared to be operating without children present, featured blacked-out windows, or showed little visible activity despite receiving public funding.
Noem posted video footage to X showing HSI agents speaking with a Somali man outside what was described as a daycare facility.
In the clip, agents questioned the man about several aspects of the business, including documentation practices and how children are transported to and from the facility.
“Homeland Security Investigations are on the ground in Minneapolis right now conducting a massive investigation on childcare and other rampant fraud. More coming,” Noem said.
This Could Be the Most Important Video Gun Owners Watch All Year
The investigation comes amid growing scrutiny of Minnesota’s childcare subsidy system and follows Shirley’s widely viewed report, which has generated significant public attention.
Shirley’s video has exceeded 110 million views on X and more than one million views on YouTube, making it one of the most widely circulated independent investigative reports of the year.
In the video, Shirley and a local resident traveled through Minneapolis and surrounding areas documenting childcare and learning centers that appeared closed or inactive while still listed as operational.
Some facilities reportedly had signage indicating they served dozens of children despite no visible evidence of activity during business hours.
Shirley’s reporting also highlighted buildings with obscured windows and limited staff presence.
🚨 Here is the full 42 minutes of my crew and I exposing Minnesota fraud, this might be my most important work yet. We uncovered over $110,000,000 in ONE day. Like it and share it around like wildfire! Its time to hold these corrupt politicians and fraudsters accountable
We ALL… pic.twitter.com/E3Penx2o7a
— Nick shirley (@nickshirleyy) December 26, 2025
The report has prompted calls for broader investigations into not only childcare facilities but also other programs that receive government subsidies in Minnesota.
Many of the allegations raised in the video have been linked to members of Minnesota’s Somali community, which has been involved in previous high-profile fraud cases tied to public assistance programs.
Following the release of Shirley’s report, FBI Director Kash Patel confirmed that federal authorities were already aware of fraud schemes in the state and were increasing investigative efforts.
Patel said the Trump administration has “surged personnel and investigative resources to Minnesota to dismantle large-scale fraud schemes exploiting federal programs” after the issues raised in the report gained national attention.
CASE UPDATE: MINNESOTA FRAUD SCHEME
The FBI is aware of recent social media reports in Minnesota. However, even before the public conversation escalated online, the FBI had surged personnel and investigative resources to Minnesota to dismantle large-scale fraud schemes…
— FBI Director Kash Patel (@FBIDirectorKash) December 28, 2025
Federal authorities have pointed to the ongoing “Feeding Our Future” case as an example of the scale of fraud uncovered in Minnesota in recent years.
WATCH: Chair Robbins walks the Fraud Committee through a web of potential fraud and describes how associates of a Feeding Our Future defendant, and possibly the defendant himself, are still receiving Medicaid dollars through assisted living facilities.
“There is a Feeding Our… pic.twitter.com/bCtAlPfTBF
— MN House GOP Rapid Response (@MNHRCWarRoom) December 17, 2025
That case involved the misuse of child nutrition funds and has resulted in dozens of convictions.
Many of those charged or convicted in the case were also members of Minnesota’s Somali community, according to federal court records.
MINNESOTA FRAUD: @NickShirleyyy’s work has helped show Americans the scale of fraud in Tim Walz’s Minnesota. @TheJusticeDept has been investigating this for months. So far, we have charged 98 individuals – 85 of Somali descent – and more than 60 have been found guilty in…
— Attorney General Pamela Bondi (@AGPamBondi) December 29, 2025
The renewed focus on childcare fraud has intensified questions about oversight at the state level, including how facilities are licensed, monitored, and reimbursed. Investigators are expected to examine paperwork practices, attendance records, and transportation logs to determine whether services billed to the government were actually provided.
Public reaction to Shirley’s report and the subsequent federal response has been swift.
Calls for accountability have grown louder, with critics questioning how such alleged activity could persist without detection by state regulators. The controversy has also drawn attention from high-profile figures outside government.
Elon Musk weighed in on the issue following the release of Shirley’s video, calling for the prosecution of Minnesota Gov. Tim Walz in connection with the allegations raised in the report.
Prosecute @GovTimWalz https://t.co/oSQprdo292
— Elon Musk (@elonmusk) December 27, 2025
While no charges have been filed against Walz, the comments added to mounting political pressure surrounding the state’s handling of welfare and childcare programs.
🚨 IT’S OFFICIAL: After Nick Shirley’s Somali fraud video, Homeland Security agents are going door-to-door and QUESTIONING Minneapolis day and child care centers
DHS SEC. KRISTI NOEM: “More coming.” 🔥
The ENTIRE fraud ring must be taken down. No excuses. pic.twitter.com/xY5vnWEP3J
— Eric Daugherty (@EricLDaugh) December 29, 2025
At this stage, DHS and FBI officials have not disclosed how many facilities are under investigation or whether criminal charges are imminent.
Authorities have indicated that the investigation remains ongoing and could expand as agents continue to collect evidence and conduct interviews.
Federal officials say additional updates are expected as the inquiry progresses, with the potential for further enforcement actions if fraud is confirmed.
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