A journalist's video investigation has uncovered apparent fraud in government-funded childcare operations in Minnesota, focusing on centers linked to the Somali community that appear to serve no children. The footage, released by Nick Shirley, claims to reveal over $110 million in fraudulent activity in a single day. The scandal has drawn calls for Governor Tim Walz's prosecution from figures like Elon Musk.
Journalist Nick Shirley released a 42-minute video on December 26, 2025, documenting an investigation into childcare fraud in Minnesota under Democratic Governor Tim Walz. The footage highlights several centers funded by the state's Child Care Assistance Program (CCAP), which receives state and federal money, but shows operations that seem empty or understaffed.
In one segment, Shirley and local resident David visit a windowless building with a misspelled 'learning' sign. David, who has lived nearby since 2017, states he has 'never seen a single child' there and accuses operators of 'stealing the money.' He demands accountability, saying Walz should be jailed if responsible. Public records indicate such centers have received millions in taxpayer funds.
Another site, visited on a weekday, was closed, with David noting no children in nine years despite millions in funding. When questioned, a woman in a hijab responds, 'I’m not sure, I don’t know,' about children at the facility.
Confronting staff at a center with only one child present, two women in hijabs yell but offer no explanations. They refuse Shirley's enrollment inquiry for his son and bar access, with one claiming fear due to his 'color'—Shirley is white.
Shirley captioned the video: '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.' He added, 'It’s time to hold these corrupt politicians and fraudsters accountable. We ALL work way too hard and pay too much in taxes for this to be happening, the fraud must be stopped.'
The video prompted Elon Musk to post on December 27, 2025: 'Prosecute @GovTimWalz.'
Broader context emerged from a recent press conference by federal prosecutor Joseph Thompson, who detailed fraud in 14 programs since 2018, totaling $18 billion in costs. He estimated up to half—or $9 billion or more—could be fraudulent during Walz's tenure. 'I think we’re an outlier in a bad way,' Thompson said. 'You don’t see fraud on this scale in other states. … Every day we look under a rock and find a new $50 million fraud scheme.' He described 'fraud tourism,' where people relocate to Minnesota to exploit lax systems, forming companies solely for scams.
Walz dismissed Thompson's claims as 'sensationalism,' asserting 'no evidence' supports a $9 billion figure.
