GOP collaboration with YouTuber heightens fallout from viral Minnesota day-care fraud video
House Republicans acknowledged working with YouTuber Nick Shirley on a viral video alleging roughly $110 million in Minnesota day‑care fraud — a piece that drew federal attention (DHS/HSI) and comes amid an HHS freeze on about $185 million in child‑care payments and door‑to‑door state investigations; GOP staff said they provided some information while DFL leaders called the effort a political stunt. State child‑care officials say the 10 centers named have been inspected at least once in the past six months and are being re‑reviewed, reporting children present and headcounts matching licenses with no findings of fraud so far, while some centers are closed and providers have publicly denied wrongdoing.
📌 Key Facts
- A viral YouTube video alleges about $110 million in Minnesota day-care fraud and has spurred both state follow-up and a visible federal response, with DHS/HSI publicly referencing the video as part of a broader fraud crackdown.
- Federal actions tied to the wider fraud probe include HHS freezing roughly $185 million per year in Minnesota child-care payments and DHS sending investigators for door‑to‑door "suspected fraud" visits.
- Minnesota’s Department of Children, Youth and Families (DCYF) says each of the 10 centers featured in the video was inspected at least once in the last six months; DCYF found children present and headcounts aligned with licenses during recent unannounced inspections and says there is so far no basis to pause payments for those centers.
- DCYF currently has about 55 open investigations related to the Child Care Assistance Program, and the 10 facilities highlighted in the video are being re‑reviewed in light of the footage.
- Two of the 10 centers shown are already closed (including Quality Learning Center), and state officials are trying to determine when and under what circumstances the video footage was recorded.
- Quality Learning Center’s manager publicly denied any wrongdoing, saying the YouTuber filmed outside posted operating hours; DCYF initially told reporters the center had closed but later said the center had notified DCYF of a Dec. 19 closure notice and then decided to remain open.
- Other providers featured in the coverage defended their operations on camera—ABC Learning’s owner and manager gave emotional statements saying the center has operated for about 5½ years without known problems.
- House GOP leaders confirmed the House GOP caucus worked with YouTuber Nick Shirley (and said they worked with agency whistleblowers) on the child‑care video; Rep. Harry Niska said some information in the video came from House Republican staff. DFL Chair Richard Carlbom and Senate Majority Leader Erin Murphy sharply criticized the GOP’s partnership with Shirley, calling it a political stunt and accusing them of amplifying a "conspiracy theorist" in a way that could harm Minnesota’s day‑care system.
📊 Relevant Data
From 2018 to 2025, 71.9% of the 89 defendants charged in public benefits fraud cases in Minnesota were of Somali origin, despite Somalis comprising approximately 1-2% of the state's population.
Somali immigrant households in Minnesota have an 81% welfare receipt rate, compared to 21% for native households, with 54% receiving food stamps versus 7% for natives, based on 2014-2023 data.
Somali Immigrants in Minnesota — Center for Immigration Studies
39.0% of working-age Somali adults in Minnesota have no high school diploma, compared to 5.0% of native working-age adults, contributing to socioeconomic challenges.
Somali Immigrants in Minnesota — Center for Immigration Studies
Somali resettlement in Minnesota began in the 1990s through Lutheran and Catholic social service groups facilitating refugee programs for those fleeing the Somali Civil War, leading to the largest Somali community in the U.S. with over 75,000 individuals.
How Misreading Somali Poverty Led Minnesota into Its Largest Welfare Scandal — American Enterprise Institute
The COVID-19 regulatory waivers in March 2020 led to a significant increase in fraud initiation, with monthly fraud amounts rising from $3.2 million pre-waiver to $11.8 million post-waiver in Minnesota's public benefits programs.
📰 Source Timeline (4)
Follow how coverage of this story developed over time
- House Speaker Lisa Demuth publicly confirmed that the House GOP caucus worked with YouTuber Nick Shirley on his child-care fraud video and said they have been "working with Nick Shirley and agency whistleblowers" to expose fraud.
- Rep. Harry Niska stated that some information in Shirley’s video came from House Republican staff, though he did not detail what they provided.
- DFL Chair Richard Carlbom and Senate Majority Leader Erin Murphy sharply criticized the GOP for partnering with a YouTube "conspiracy theorist" and called the tactic a political stunt that could harm Minnesota’s daycare system.
- The article reiterates that DCYF Commissioner Tikki Brown says all 10 featured facilities had been inspected at least once in the last six months and are now being re‑reviewed in light of the video.
- It situates this political collaboration in the broader context of HHS freezing about $185 million per year in child-care payments to Minnesota and DHS sending investigators for door‑to‑door "suspected fraud" visits.
- Quality Learning Center’s manager publicly denied wrongdoing and said the YouTuber filmed outside posted operating hours, calling the fraud accusation 'completely false.'
- DCYF initially told reporters Quality Learning Center had closed, but later corrected that the center had notified DCYF of closure on Dec. 19 and then decided to remain open.
- ABC Learning’s owner and manager gave on‑camera, emotional statements defending their center, stressing it has operated for 5½ years 'without a problem' as far as they know.
- DCYF Commissioner Tikki Brown confirmed each of the 10 centers in the video has been inspected at least once in the last six months and all are being re‑reviewed again in light of the video.
- DCYF reiterated that it currently has 55 open investigations tied to the Child Care Assistance Program, but that past checks at the 10 highlighted centers have not produced hard evidence of fraud.
- Confirms that the viral YouTube video alleging $110M in day-care fraud has prompted not only state follow-up but a visible federal response, with DHS/HSI publicly referencing the video as part of a broader fraud crackdown.
- Clarifies DCYF’s position that recent unannounced inspections at the 10 named centers found children present, headcounts aligned with licenses, and no basis so far for pausing payments, strengthening the state’s skepticism about the video’s fraud claims.
- Adds emphasis that two of the 10 highlighted centers are already closed (including the misspelled 'Quality Learning Center'), and that the state is specifically trying to determine when and under what circumstances the video footage was shot.