Minnesota child care centers on the coronary heart of widespread fraud allegations fueled by a viral video had been working as anticipated when visited by investigators, the state Department of Children, Youth, and Families mentioned in a information launch Friday.
“Children were present at all sites except for one – that site, was not yet open for families for the day when inspectors arrived,” the company mentioned.
The company gathered proof and initiated additional assessment, noting the investigation into 4 centers was ongoing, the report said.
The report comes days after YouTube content creator Nick Shirley, who has created anti-immigrant and anti-Muslim movies previously, posted a viral video by which he claimed to seek out widespread fraud at Somali-run child care centers.
The video, which incorporates restricted proof for the creator’s allegations, has obtained 3 million views on YouTube as of Friday and gained traction after being reposted by Vice President JD Vance and former Department of Government Efficiency leader Elon Musk.
The conservative activist’s 42-minute video posted the day after Christmas rapidly unfold, prompting stepped up immigration enforcement, frozen federal funds and extra biting rhetoric in opposition to the Somali neighborhood from President Donald Trump.
The state Department of Children, Youth, and Families on Friday warned distribution of “unvetted or deceptive claims and misuse of tip lines can interfere with investigations, create safety risks for families, providers, and employers, and has contributed to harmful discourse about Minnesota’s immigrant communities.”

Minnesota lawmaker: Families in limbo after WH freezes child care funds

“DCYF remains committed to fact-based reviews that stop fraud, protect children, support families, and minimize disruption to communities that rely on these essential services,” the report mentioned.
After the video’s launch, Health and Human Services froze all child care funds to the state for assessment, because the FBI and Department of Homeland Security examine allegations of fraud. NCS on Friday reached out to the FBI and DHS for touch upon the preliminary state findings.
HHS, via a spokesperson, didn’t reply on to the state findings Friday and reiterated its name for a extra strong verification course of to forestall fraud. “The onus is on the state to provide additional verification,” mentioned Andrew Nixon, HHS deputy assistant secretary for media relations.
The Trump administration has given Minnesota officials till subsequent Friday to supply verifying details about suppliers and oldsters who obtain federal funds for child care, based on an e mail despatched Friday by DCYF to child care suppliers shared with The Associated Press. NCS has reached out to HHS and state officials for clarification.
In addition to demanding a state audit of the Minnesota day care centers featured within the video, Health and Human Services secretary Jim O’Neill mentioned the company would now require justification and receipts or picture proof for all funds to states from the division’s Administration of Children and Families.
At situation in allegations made within the controversial video had been funds from the Child Care Assistance Program – referred to as CCAP – for 2025.
The report listed the quantity of CCAP funding the centers within the video obtained in fiscal 2025, starting from $470,000 to $3.6 million, and totaling over $17 million.
One middle talked about within the video has been closed since 2022, the report mentioned.
CCAP doesn’t take purposes immediately from day care centers. Instead, certified working mother and father and different eligible caregivers who make lower than this system’s revenue restrict apply on to the state for help, which is paid to the day care middle.
The accusations leveled within the video had been the latest in a sequence of fraud scandals involving state social service applications that offered meals for needy kids through the pandemic, Medicaid housing help and different security nets which profit needy households.
The scandals return practically a decade and embrace allegations of fraud within the Somali neighborhood centered on Feeding Our Future, a nonprofit prosecutors mentioned falsely claimed to supply meals to needy kids through the Covid-19 pandemic. Federal prices had been introduced in opposition to dozens of individuals — most of them Somali — starting in 2022.