All-In Breakdown

Minnesota Daycare Fraud

Topic

A large-scale fraud scheme involving Somali immigrants, used by Carolla as an example of how government handout systems without checks and balances are inevitably corrupted.

First Mentioned

1/1/2026, 5:25:15 AM

Last Updated

1/14/2026, 2:39:59 AM

Research Retrieved

1/1/2026, 5:27:01 AM

Summary

The Minnesota Daycare Fraud is a multi-billion dollar entitlement fraud scheme targeting the Minnesota Child Care Assistance Program (CCAP). The issue gained national prominence following a viral investigative report by YouTuber Nick Shirley, who alleged that the fraud is part of a systemic patronage system involving political corruption. Allegations suggest that Minnesota politicians, including Governor Tim Walz, may have ignored the fraud in exchange for political support from the Somali community in Minnesota, where many of the implicated centers are located. Beyond financial mismanagement, federal authorities including the FBI and DHS are investigating explosive claims that fraudulent funds were funneled to the terrorist organization al-Shabaab. The controversy has led to the freezing of federal child care funds by HHS and has sparked a broader debate regarding government waste and oversight in the United States.

Referenced in 2 Documents
Research Data
Extracted Attributes
  • Target Program

    Minnesota Child Care Assistance Program (CCAP)

  • Key Allegations

    Entitlement fraud, political patronage, and terrorism funding

  • Primary Location

    Minnesota, USA

  • Related Community

    Somali community in Minnesota

  • Investigation Status

    Active federal investigation by FBI, DHS, and HHS

  • Estimated Financial Impact

    Multi-billion dollars (potentially up to $18 billion across state programs since 2018)

Timeline
  • Beginning of the period during which a federal prosecutor alleges half or more of $18 billion in federal funds for Minnesota programs may have been stolen. (Source: NPR)

    2018-01-01

  • Over 90 individuals are charged in a related $250 million COVID-19 relief fraud scheme involving a Minnesota nonprofit. (Source: NPR)

    2022-01-01

  • Nick Shirley releases a viral YouTube video alleging massive fraud at Somali-owned daycare centers in Minnesota. (Source: MPR News)

    2025-12-27

  • The FBI and Department of Homeland Security announce they are surging resources to investigate fraud at Minnesota child care centers. (Source: CNN)

    2025-12-29

  • HHS freezes federal child care funds to Minnesota; Somali child care providers report vandalism and threats following the viral allegations. (Source: CBS News)

    2025-12-31

Wikipedia
View on Wikipedia
Nick Shirley

Nick Shirley (born April 4, 2002) is an American YouTuber, right-wing influencer, and self-described independent journalist. He is known for his on-the-ground street interviews and investigative reporting on political and social issues, particularly government spending, immigration, and alleged fraud.

Web Search Results
  • Alleged fraud in Minnesota day cares

    families. [...] scammers in NYC,” and an interview with Attorney General Pam Bondi. [...] The FBI and the Department of Homeland Security say they are “surging” to investigate fraud in Minnesota, including at child care centers, in the latest show of federal force in the state — home to the country’s largest Somali population.

  • Everything we know about Minnesota's massive fraud schemes

    ## Fraud claims against day care centers [...] # In: Minnesota Fraud #### HHS freezes federal child care funds to Minnesota amid viral fraud allegations (03:45) [...] security footage of people dropping off young children the same day that Shirley arrived and claimed the day care was empty.

  • Who is Nick Shirley, YouTuber alleging day care fraud

    "They have a narrative, and they do everything they can to advance that narrative, but they seem to spend little to no time looking for the other side of the story, and that's what good investigative journalism has to do," she added. Minnesota YouTube daycare fraud [...] Allegations of social services fraud in Minnesota have been the subject of federal investigations and mainstream media coverage for years. In one high-profile example, more than 90 individuals have been charged since 2022 in the ongoing case of a Minnesota nonprofit that prosecutors say misappropriated some $250 million in federal COVID-19 relief funds intended to feed children in need, calling it "the largest Covid-19 fraud scheme in the country." [...] And a federal prosecutor said earlier this month that half or more of the roughly $18 billion in federal funds that supported 14 Minnesota-run programs since 2018 may have been stolen.

  • Somali child care providers report vandalism, threats after ...

    Minnesota Republican House Speaker Lisa Demuth said this week that her caucus steered Shirley to child care sites in Minnesota. Fraud has been a big issue for Governor Tim Walz, who’s been accused of not doing enough to stop it. Earlier this month, federal prosecutors unveiled more charges in a widespread, ongoing investigation of “staggering, industrial-scale” Medicaid fraud in Minnesota that’s likely to reach into the billions of dollars. [...] Mohamed is referring to a video posted last Friday by right-wing content creator Nick Shirley. Shirley visited a number of day care facilities and other businesses in an attempt to expose fraud in Minnesota. The majority of the centers featured were Somali-owned. The video went viral, which resulted in calls for investigations by the state and an onslaught of racist rhetoric towards the Somali community. In addition to the break-in at Nokomis Center, other Somali child care providers say they

  • Feds launch massive taxpayer fraud probe in Minnesota ...

    MINNEAPOLIS (NewsNation) — Federal agencies descended on Minnesota this week to investigate suspected fraud at child care centers and other facilities after a viral YouTube video claimed to uncover $110 million in fraudulent payments, intensifying scrutiny of the state’s oversight of public assistance programs.