Minnesota video shows alleged multi-million daycare fraud under Walz

The third-ranking House leader, also from Minnesota, demanded answers from Gov. Tim Walz after a YouTuber tried to confront employees of an alleged day care center that had misspelled signage and no signs of activity outside but allegedly received $4 million in public funds.

The video went viral this week amid the ongoing burgeoning scandal surrounding the Walz administration, which included at least $1 billion lost to alleged social services fraud largely linked to the Twin Cities’ Somali community. Some of it is believed to have ended up in the hands of the Somali terrorist group Al-Shabab.

In response to the video, House Republican Majority Whip Tom Emmer, who represents the Twin Cities and St. Cloud suburbs, lashed out at the governor:

“$4 million in hard-earned taxes goes to an education center that doesn’t even know how to spell ‘learning’ correctly. Care to explain this one, Tim Walz? he wrote about X.

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Tim Walz, left, and Rep. Tom Emmer speak during a congressional event. (Bill Clark/CQ-Getty Images)

The Quality Learning Center also recently made news for collecting 95 violations from the state social services agency between 2019 and 2023, according to St. Paul’s ABC affiliate.

Such violations range from failing to keep dangerous items out of children’s reach to daycare having no records for more than a dozen children listed, according to the news outlet. Documentation reviewed by Fox News Digital showed that the site’s current license does not expire until the end of 2026.

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This week, YouTuber Nick Shirley and another man approached a building labeled Quality Learning Center (sic) on Nicolett Avenue in Minneapolis, with Shirley noting that “Learning” was misspelled on the daycare’s sign outside.

Almost immediately, a woman appears and repeatedly shouts – seemingly to anyone inside the building – “don’t open, it’s ICE.”

Shirley asked the woman if she thought he or the other man were immigration agents and identified herself as an online commenter.

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The man held up a piece of paper that appeared to show $1.9 million had been disbursed to the center in fiscal year 2025, adding that the total disbursement to the center he had recorded was $4 million.

“Go away, you are not welcome here, shame on you,” the woman told Shirley, without it being known whether she had any connection to the center.

“Are you in favor of $1.9 million being paid illegally/fraudulently to this company that [is called] “Quality learning center”, but I can’t write “learning” directly on the door”

Scale ‘cannot be overstated’: Feds say Minnesota fraud could be more than $9 billion

A document posted on the Minnesota Department of Human Services website shows the center is supposed to house 99 children — a figure also shown in Shirley’s video.

“There’s no one here,” he said.

“This is a prime example of the billions of dollars of fraud currently happening in Minnesota, this is one of hundreds of ‘daycares’ receiving millions of dollars from the government, this daycare (that can’t even spell ‘learn properly’) received $1,900,000 in tax-exempt funding from CCAP in 2025. This is just one of thousands of fraudulent companies operating in Minnesota.

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X commenter Greg Price shared the video, writing that if people tried to “knock on the doors of Somali daycares that received millions of dollars in taxes from the Minnesota government, liberal white women will accuse you of being ICE.”

U.S. Attorney Joseph Thompson said that when investigations into all of CCAP and the state of Minnesota’s programs are complete, the fraud could exceed $1 billion. The Treasury Department is also investigating, with Secretary Scott Bessent remaining steadfast in his public statements on the matter.

The most notable recipient was a purported child nutrition effort called Feeding Our Future, while other recipients of CCAP (Minnesota Child Care Assistance Program) funding have attracted attention in recent days.

Fox News Digital contacted the number listed for the daycare in state government documents, but an automated message indicated the call could not be completed as dialed.

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Fox News Digital sought comment from Walz and Minnesota’s top prosecutor, Attorney General Keith Ellison.

Fox News Digital also reached out to the U.S. DHS for comment on criticism of the Minnesota investigation appearing to attribute the employment of ICE as a proxy to people they say could cause unwarranted problems in public.