Minnesota Gov. Tim Walz’s office is forcefully rejecting allegations of widespread fraud after a viral video ignited fresh scrutiny of state-funded childcare centers that appear nearly empty, yet allegedly received millions in public money.
The controversy erupted after independent journalist Nick Shirley released a lengthy video documenting visits to multiple daycare facilities across the state. One location, in particular, raised eyebrows due to its apparent inactivity despite reportedly receiving substantial state funding.
Governor’s Office Defends Record on Fraud Enforcement
As questions mounted, a spokesperson for the governor responded by emphasizing Walz’s longstanding efforts to combat fraud across Minnesota’s public programs.
“The governor has worked for years to crack down on fraud and ask the state legislature for more authority to take aggressive action,” the spokesperson said.
“He has strengthened oversight — including launching investigations into these specific facilities, one of which was already closed.”
According to the governor’s office, those efforts have gone well beyond rhetoric. The spokesperson pointed to structural reforms already underway, including audits, shutdowns, and criminal enforcement.
Walz, the spokesperson added, has “hired an outside firm to audit payments to high-risk programs, shut down the Housing Stabilization Services program entirely, announced a new statewide program integrity director, and supported criminal prosecutions.”
Inside the Video That Sparked the Firestorm
The response comes after Shirley released a 42-minute video on social media platforms Friday, detailing visits to several daycare centers in Minnesota.
One stop, located on Nicollet Avenue in Minneapolis, stood out. The building appeared largely inactive, with no visible children present. Even more striking, the sign outside the facility was misspelled, reading “Quality Learing Center.”
Despite its appearance, the center is reportedly licensed for 99 children and allegedly received roughly $4 million in state funding.
Shirley’s footage shows him and another man walking through the area, questioning how such a facility could receive that level of public support while showing little sign of daily operation.
‘So Obvious,’ Shirley Says
During a televised appearance Sunday, Shirley did not mince words about what he believes the video shows.
The alleged fraud, he said, was “so obvious” that a “kindergartner could figure out that there is fraud going on.”
He went further, suggesting that some journalists may avoid digging into similar cases due to fear of backlash or reputational damage.
Still, Shirley framed the issue as a matter of basic accountability.
“Fraud is fraud, and we work too hard simply just to be paying taxes and enabling fraud to be happening,” he said.
Political Backlash Grows Nationwide
As the video circulated widely over the weekend, criticism of Walz intensified from prominent political and public figures.
Vice President JD Vance, Rep. Mike Lawler of New York, Donald Trump Jr., and Elon Musk were among those who publicly weighed in, amplifying the story across social media.
The White House also entered the conversation Sunday, reposting a message from Education Secretary Linda McMahon that sharply criticized the situation.
She described the alleged fraud as a “breathtaking failure that has happened under the watch” of Walz.
FBI Expands Investigation Efforts
Meanwhile, federal authorities are stepping up their involvement.
FBI Director Kash Patel confirmed that the agency has increased personnel and investigative resources dedicated to Minnesota as part of a broader push to unravel fraud tied to federal programs.
The goal, Patel said, is to “dismantle large-scale fraud schemes exploiting federal programs.”
The expanded federal focus comes as scrutiny intensifies around the Walz administration, which is already facing fallout from previous fraud cases.
A Growing Scandal With Billions at Stake
The daycare video surfaced amid an expanding scandal that has placed Minnesota’s oversight systems under a harsh spotlight.
At least $1 billion has reportedly been lost to alleged social services fraud in recent years, much of it tied to programs operating in the Twin Cities. The scale of the losses has fueled renewed demands for accountability, oversight, and reform.
As investigations continue, the pressure on state leadership shows no signs of easing. Whether the viral footage becomes a turning point or another flashpoint remains to be seen.
