The Department of Health and Human Services (HHS) has announced the suspension of all child care payments to the state of Minnesota amid serious allegations of fraudulent activities within day care centers. This decision follows claims of widespread fraud, particularly targeting Somali communities in Minneapolis, as highlighted by conservative influencer Nick Shirley in a viral video.
In addition to freezing payments, Deputy HHS Secretary Jim O'Neill stated that the agency is implementing stricter requirements for payments from the Administration for Children and Families to all states. Effective immediately, states must provide justification along with a receipt or photographic evidence for all payment requests. This move signifies HHS's commitment to tackling fraud that appears to be prevalent not only in Minnesota but across the nation.
The allegations originated from an unverified 40-minute video posted by Nick Shirley, which claims to expose fraudulent practices at day care centers in Somali communities. In his video, Shirley visited several facilities and reported that they were empty during his visits. However, the claims made in the video have been disputed by Minnesota officials, who emphasize that these facilities have been regularly monitored and assessed for compliance.
In a social media post, Governor Tim Walz of Minnesota responded to HHS's actions, suggesting that such measures are part of a larger political strategy to undermine programs that support Minnesotans. Walz stated, "This is Trump’s long game. We’ve spent years cracking down on fraudsters. It’s a serious issue - but this has been his plan all along."
Commissioner Tikki Brown of the Minnesota Department of Children, Youth and Families voiced concerns regarding the timing of Shirley's video, questioning whether the visits occurred during normal operating hours. Brown reassured the public that state officials are actively investigating the allegations and have conducted multiple inspections of the facilities mentioned in the video.
Unrelated investigations into fraud have been ongoing since the Biden administration, with state officials taking these allegations seriously. Brown noted that children were present during all unannounced visits by the state, contradicting Shirley's claims. The Minnesota Department of Children, Youth and Families has not yet provided further comments regarding the allegations.
In response to the viral video, Homeland Security Secretary Kristi Noem announced that her department is conducting a massive investigation into childcare fraud. FBI Director Kash Patel also indicated that resources are being concentrated in Minnesota to address these allegations, asserting that the fraud uncovered in federal food aid programs during the COVID-19 pandemic is just the "tip of a very large iceberg."
To date, the FBI has dismantled a staggering $250 million fraud scheme related to federal food aid intended for vulnerable children. This investigation revealed a network of sham vendors, shell companies, and extensive money laundering activities tied to the Feeding Our Future program. Although the initial fraud scheme was uncovered during the Biden administration, legal actions continue as recently as this year.
During a cabinet meeting earlier this month, former President Donald Trump criticized the U.S. Somali community, linking them to the allegations of fraud in Minnesota. Furthermore, a senior prosecutor from the U.S. Attorney's Office in Minnesota emphasized the alarming scale of fraud in the state, stating, "The magnitude of fraud in Minnesota cannot be overstated. It’s staggering amounts of money that’s been lost."