Here’s what’s really happening with child care fraud in Minnesota

January 9, 2026

A viral video by right-wing YouTuber Nick Shirley claiming widespread child care fraud at Somali-run day cares in Minnesota has sparked national controversy, prompting the Trump administration to freeze federal child care funding to five Democratic states. While Minnesota has documented some child care fraud issues since 2019, state investigations found children and normal operations at nearly all facilities featured in the video, contradicting Shirley's claims. The controversy has led to harassment of Somali-owned businesses, increased fear among immigrant child care workers, and a federal funding freeze that was temporarily blocked by a judge.

Who is affected

Low-income families receiving child care subsidies in Minnesota, California, Colorado, New York, and Illinois (approximately 23,000 children in Minnesota alone)
Somali American day care operators and businesses facing harassment and threats
Immigrant child care workers (about 1 in 5 child care workers nationwide are immigrant women)
Single mothers (who head about 95 percent of families receiving assistance in some programs)
Child care center owners and directors operating on thin margins
Minnesota Gov. Tim Walz, who suspended his reelection campaign
Day care centers featured in the video, including Quality Learning Center (which closed) and others under investigation

What action is being taken

State investigators from the Minnesota Office of Inspector General are conducting further investigations into four of the nine facilities shown in the video
The five affected states (Minnesota, California, Colorado, New York, and Illinois) are suing the Trump administration over the funding freeze
Minnesota state officials are providing additional documentation, including Social Security numbers for all 23,000 children receiving child care funds
All states must now submit additional documentation to access federal child care dollars
Minnesota is using "several months" of reserves to cover care for children in case federal funds remain frozen

Why it matters

This situation matters because it demonstrates how unverified claims can trigger policy changes affecting vulnerable populations who depend on child care assistance to maintain employment. The funding freeze and increased reporting requirements threaten the stability of child care centers operating on thin margins, potentially forcing them to cut staff, close classrooms, or shut down entirely. The controversy has also fueled harassment and discrimination against Somali American communities and immigrant child care workers, while creating significant uncertainty for low-income families—particularly single mothers—who lack alternative child care options or employment benefits to manage disruptions. The case highlights tensions between fraud prevention efforts and ensuring continued access to essential services for families with the fewest resources.

What's next

A federal judge has ordered the Trump administration to release the frozen funds while the lawsuit from the five states is pending
States must continue submitting additional documentation to access federal child care dollars under new requirements
Minnesota's Office of Inspector General will complete investigations into four facilities from the video
Child care providers and families await clarity on whether funding freezes could still occur and what long-term impacts the new reporting requirements will have on payment processing and operations

Read full article from source: The 19th