U.S. Feds descend on Minneapolis after viral video alleges massive childcare fraud

U.S. federal authorities have launched a major investigation in Minneapolis, Minnesota following claims that a large-scale fraud scheme linked to immigrant-run childcare centres has siphoned millions of dollars in public funds.

The Department of Homeland Security confirmed that federal agents began operations in the city on Monday after a viral video by YouTuber Nick Shirley alleged widespread abuse of taxpayer-funded childcare programmes. In the video, Shirley visited several centres he said were registered as operating daycares but appeared empty, with darkened windows, vacant car parks and no sign of children.

One facility highlighted in the footage, the Quality Learing Center, drew particular attention for its misspelt signage and apparent lack of activity. Shirley claimed his team uncovered more than $110 million in fraudulent claims in a single day. The video quickly spread online and was shared by high-profile figures including US Vice President J.D. Vance and billionaire Elon Musk.

In response, Homeland Security Secretary Kristi Noem announced what she described as a “massive investigation” into childcare and other alleged fraud schemes, releasing footage of agents questioning business operators. FBI Director Kash Patel said additional investigative resources had been deployed to Minnesota, warning the cases uncovered so far could be only “the tip of a very large iceberg”. He added that suspects could face denaturalisation and deportation if wrongdoing is proven.

A federal prosecutor has claimed that as much as half of the $18 billion in federal funds sent to Minnesota since 2018 may have been stolen. Many recent fraud cases in the state have involved defendants of Somali descent, including the high-profile ‘Feeding Our Future’ case, in which up to $250 million was allegedly misappropriated through a COVID-19 food aid programme.

Minnesota Governor Tim Walz has defended his administration, praising the state’s diversity and its large Somali community. State officials have pushed back against Shirley’s claims, saying the childcare centres featured in his video had been inspected within the past six months and showed no evidence of fraud.

Confusion has continued around the Quality Learing Center. State authorities say the centre was shut down last week, while a New York Post report from Monday claimed the building was suddenly full of children. A nearby resident told the paper they had never previously seen children entering the premises, while a daycare employee reportedly ordered the reporter to leave the property.

DHS is on the ground in Minneapolis, going DOOR TO DOOR at suspected fraud sites.

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. pic.twitter.com/7XtRflv36b

— Homeland Security (@DHSgov) December 29, 2025