A viral YouTube video exposing alleged massive fraud at Somali-run daycare centers in Minnesota has triggered a sweeping federal investigation, with the FBI and DHS deploying resources to the state.
Independent journalist Nick Shirley’s footage, viewed over 1.5 million times, reveals empty facilities receiving millions in taxpayer dollars through child nutrition and welfare programs.
The scandal, dubbed a $250 million scheme, has drawn fire from President Donald Trump, Vice President Vance, and Elon Musk, amplifying national scrutiny on Minnesota’s large Somali-American population, the largest in the US.
Shirley’s investigation highlights centers like the Quality Learning Center, which reportedly pocketed $1.9 million this year despite showing no signs of activity—no children, no toys, just vacant rooms and locked doors.
Local residents told Shirley they’d never seen kids there, raising questions about ghost operations siphoning federal funds intended for low-income families.
He was even escorted out by police for trespassing during filming, underscoring the tension around his probe.
Similar claims target dozens of Somali-owned daycares across Minneapolis-St. Paul, some allegedly funneling money overseas, though unverified links to extremists remain speculative and unconfirmed by officials.
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The federal response has been swift and aggressive. FBI Director Kash Patel and DHS Secretary Kristi Noem surged agents into Minnesota, building on a prior DOJ crackdown that charged 98 individuals—mostly Somali-Americans—in a related fraud ring, yielding 60 convictions and recovering significant funds.
President Trump blasted the situation on social media, tying it to broader ICE raids on undocumented immigrants and criticizing Governor Tim Walz’s oversight of state welfare programs.
Walz responds
Walz’s office countered that some featured centers were already shuttered for violations, and cases were promptly handed over to law enforcement, insisting that no systemic failure exists in the regulated childcare system.
Critics accuse Shirley’s video of anti-immigrant bias, noting its promotion by GOP figures like the state House Republican caucus and its timing amid political tensions over immigration.
Somali community leaders decry the broad brush, arguing it stigmatizes legitimate businesses while ignoring oversight gaps.
Echoes have surfaced in Washington state, where 283 Somali-language daycares now face similar audits, prompting Governor Bob Ferguson to reassure communities.
