Are fake minisoda day cares taking tax payer money
Executive summary
Allegations that “fake” daycare centers are siphoning taxpayer dollars in Minnesota have prompted federal and state probes after a viral video by independent journalist Nick Shirley alleged millions in fraud [1]. Investigations by DHS, the FBI, ICE and others are ongoing, state inspections have both reopened centers and found many operating normally, and no public, comprehensive finding has yet proven a systemic network of entirely fake daycares collecting widespread taxpayer money [1] [2] [3].
1. What set off the current uproar
The immediate catalyst was a 42-minute video circulated online that visited multiple licensed child-care locations and asserted up to $110 million in fraudulent payments to supposedly empty or shuttered facilities, prompting coordinated federal interest from agencies including DHS, FBI, ICE and the SBA [1] [4]. That social-media exposure followed a series of earlier prosecutions and reporting about fraud in Minnesota social services, so the video amplified concerns already under official scrutiny [5].
2. What federal and state investigators are doing now
Federal agencies publicly announced new investigations and some federal funding for child care to Minnesota was frozen while reviews proceed, with officials saying they will “follow the money” and expand probes that had been active since the pandemic [6] [7] [8]. State licensing inspectors told reporters they revisited facilities named in the video; Minnesota’s Department of Children, Youth and Families (DCYF) reported inspections and said several facilities were operating as expected even after the viral claims [3] [2].
3. Evidence so far: prosecutions, inspections, and open cases
There is documented precedent of fraud prosecutions in Minnesota’s social services—federal prosecutors have charged dozens of people in schemes tied to hundreds of millions of dollars, and officials say investigations into program misuse have been ongoing for years—yet the newest claims have not been resolved into a single verified tally that confirms the viral video’s specific totals [5] [6]. The DCYF says it has dozens of open CCAP-related investigations statewide and that of the ten centers referenced in the video, four were under active investigation while others were found operating normally or had previously closed [3] [9].
4. Conflicting narratives, politics and community impact
Reporting and reaction have been sharply divided: some federal and congressional actors frame the episode as the tip of a massive statewide fraud iceberg and call for sweeping accountability [10] [6], while state investigators and outlets like NBC and WCVB reported that many targeted centers were functioning and warned that unvetted allegations and doorstep confrontations risk harassment of providers—especially within Minnesota’s Somali community [2] [9] [11]. Political actors and advocacy groups therefore have competing incentives: some push for aggressive national investigations and funding freezes, while others emphasize procedural investigations to avoid false accusations and community harm [11] [7].
5. Direct answer: are “fake” daycares taking taxpayer money?
The evidence at this stage shows credible allegations and ongoing investigations into misuse of child-care and other social-service funds in Minnesota, and there have been prior convictions in related fraud schemes, but there is not yet publicly available, conclusive proof that a widespread network of entirely fake daycare storefronts is systematically collecting the large sums alleged in viral posts; inspections have found some centers operating normally even as multiple probes continue [5] [2] [3]. In short: fraud investigations are real and active, some misuse has been criminally prosecuted historically, but the viral claim that a large number of “fake” daycares are clearly and comprehensively taking taxpayer money has not been established in the public record at this time [1] [6] [5].
6. What to watch next
Monitor results of federal grand-jury activity, whether the frozen federal child-care payments are reinstated after state audits, disclosures from DCYF inspections and any indictments that specifically link payments to sham facilities, and independent audits of CCAP disbursements—because outcomes of those formal processes, not viral footage or partisan statements, will determine whether the allegations prove systemic or represent a mix of isolated fraud, administrative error, and misleading presentation [7] [3] [6].