Following a viral video exposé by journalist Nick Shirley revealing apparent fraud at Somali-run Minnesota day cares, the Trump administration has frozen $185 million in annual federal funding supporting 19,000 children. The action, announced December 30 amid ongoing probes, has sparked partisan clashes, with Governor Tim Walz accusing politicization.
Shirley's December 26 video, which documented empty facilities receiving millions in federal funds and has amassed over 133 million views across platforms (see prior coverage: 'Video exposes apparent fraud in Minnesota childcare centers'), prompted swift federal response.
Conservative figures amplified it: Vice President J.D. Vance praised Shirley's journalism over Pulitzer winners; FBI Director Kash Patel confirmed surged resources; Elon Musk, Donald Trump officials, and others shared widely.
On December 30, the Department of Health and Human Services halted payments to Minnesota, demanding audits of attendance, licenses, and inspections. Deputy Secretary Jim O'Neill cited 'blatant fraud' and rolled out nationwide safeguards: photo evidence, receipts for payments, and a fraud hotline.
The Department of Homeland Security launched operations in Minneapolis, vowing to 'arrest and remove criminals defrauding' via day cares.
This builds on Minnesota's fraud history, including the $250M Feeding Our Future scandal (90+ Somali-descent defendants charged since 2022), potential $9B stolen from $18B in 14 programs since 2018, $200M autism Medicaid fraud, and recent housing scams.
Governor Walz decried it as Trump's 'long game' to defund programs, claiming state crackdowns and a January audit. Republicans, including Rep. Tom Emmer, accused Walz and AG Keith Ellison of cover-ups for Somali voters; Reps. Finstad, Stauber, and Fischbach demanded cooperation, labeling it 'illegal taxpayer theft.' Walz and Ellison face House Oversight summons.
Shirley reported death threats and doxxing. A non-featured day care claimed a break-in; managers denied fraud, citing inspections by the Department of Children, Youth, and Families.
