Minnesota video shows alleged multi-million daycare fraud under Walz

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The third-ranking leader in the House of Representatives, also from Minnesota, sought answers from Gov. Tim Walz after a YouTuber tried to confront workers at a daycare center that allegedly had misspelled signs and no signs of work outside but reportedly received $4 million in federal funds.
The video went viral this week amid a growing scandal engulfing the Walz administration that includes at least $1 billion lost in social services fraud related to the Twin Cities’ Somali community. Part of it reportedly ended up in the hands of the Somali terrorist group Al-Shabab.
Responding to the video, Republican House Majority Whip Tom Emmer, who represents the Twin Cities suburbs and St. Cloud, lashed out at the manager.
“4 million dollars of hard-earned tax dollars going to an institution that can’t even spell read. Are you interested in this, Tim Walz?” wrote to X.
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Tim Walz, left, and Rep. Tom Emmer spoke during the congress event. (Bill Clark/CQ-Getty Images)
The Quality Learning Center also recently reported collecting 95 violations at the state’s human services center between 2019 and 2023, according to the St. Paul’s ABC.
Such violations range from failing to keep hazardous materials away from children to a daycare having no records of more than a dozen listed children, according to the store. Documents reviewed by Fox News Digital showed 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 went to a building labeled Quality Learning Center (sic) on Nicollet Avenue in Minneapolis, where Shirley noticed that “Reading” was misspelled on the kindergarten sign outside.
Soon, a woman appears and shouts repeatedly – clearly to anyone inside the building – “Don’t open. It’s freezing.”
Shirley asked the woman if she thought she or the other man were migrant workers and identified herself as an Internet commentator.
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The man held up a piece of paper that appeared to show that $1.9 million had been disbursed from the facility in fiscal year 2025, adding that the total disbursements from the facility he had recorded was $4 million.
“Go away. You’re not welcome here. You’re ashamed,” the woman told Shirley. It was not clear whether the woman had any connection with the institution.
“Do you agree with $1.9 million going to this business illegally/fraudulently [is called] ‘Quality Learning Centre’ but can’t spell ‘learning’ on the door?”
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A document on the Minnesota Department of Human Services website shows that the facility is responsible for 99 children, which is the number mentioned in Shirley’s video.
“There’s nobody here,” she said.
“This is a prime example of the billions of dollars in fraud going on right now in Minnesota. This is one of the hundreds of ‘daycares’ that are getting millions of dollars from the state. This daycare (that can’t even spell read correctly) got $1,900,000 in tax subsidies from CCAP by 2025. This is just one of the thousands of businesses that are out of business in Minnesota.”
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X columnist Greg Price shared the video, writing that if people tried to “knock on the doors of Somali day care centers that received millions of tax dollars from the state of Minnesota, free white women would accuse them of being ICE.”
U.S. Attorney Joseph Thompson said that once the investigation into the entire CCAP and Minnesota programs is complete, the fraud could exceed $1 billion. The Department of Finance is also investigating, Secretary Scott Bessent continues to speak in public statements on this matter.
The most notable recipient was a child nutrition effort called Feeding Our Future, while other CCAP (Minnesota Child Care Assistance Program) grant recipients have come under scrutiny in recent days.
Fox News Digital reached out to the number listed in state government records, but an automated message said the call could not be completed as it was called.
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Fox News Digital reached out to Walz and the top prosecutor in Minnesota, Attorney General Keith Ellison, for comment.
Fox News Digital has also contacted the US DHS for any comments from critics of the Minnesota investigation who seem to say that the hiring of ICE as a proxy for people they believe could cause unnecessary problems for the public.



