State, DHS respond to viral Minnesota day-care fraud video; DCYF rechecks 10 sites
A viral YouTube video alleging $110 million in day‑care fraud prompted a federal DHS/HSI response and a state review, but Minnesota officials say there are "no findings of fraud." DCYF made unannounced visits to the 10 named centers, found children present with headcounts matching licensed capacity and no current basis to pause payments, noted two of the centers are already closed (including the misspelled "Quality Learning Center"), and is trying to determine when and under what circumstances the footage was recorded.
📌 Key Facts
- A viral YouTube video alleges as much as $110 million in Minnesota day-care fraud.
- The video prompted state follow-up and a visible federal response; DHS and HSI have publicly referenced the video as part of a broader fraud crackdown.
- Washington state’s Department of Children, Youth and Families (DCYF) conducted recent unannounced inspections at the 10 centers named in the video.
- DCYF’s inspections found children present at those sites, headcounts that aligned with licensed capacities, and so far no basis to pause payments, strengthening state skepticism about the video’s fraud claims.
- Two of the 10 highlighted centers are already closed, including one listed in the video with a misspelled name ('Quality Learning Center').
- State officials are working to determine when and under what circumstances the footage in the viral video was recorded.
📊 Relevant Data
In Minnesota's Feeding Our Future fraud scandal, federal prosecutors charged 70 people with stealing more than $250 million from a federal child nutrition program, with most defendants being Somali immigrants or their descendants, despite Somali Americans making up approximately 1.5% of Minnesota's population of 5.7 million.
How Fraud Swamped Minnesota’s Social Services System on Tim Walz’s Watch — The New York Times
Minnesota has the largest Somali population in the United States, with about 86,000 Somali Americans, largely due to refugee resettlement programs starting in the 1990s, which may contribute to socioeconomic vulnerabilities leading to involvement in fraud schemes.
Fraud scandals and Trump’s rhetoric escalate fears in Minnesota’s Somali community — PBS NewsHour
A whistleblower identified dozens of suspected fraud cases in Minnesota's Child Care Assistance Program (CCAP) involving overbilling and ghost children, with some cases dating back to 2013 but ongoing investigations into recent years revealing persistent issues.
Minnesota’s Child Care Assistance Program has fraud cases dating back 12 years — KSTP
Federal investigators estimate that up to $9 billion in Minnesota's social services programs, including child care and Medicaid, may have been fraudulently obtained, with schemes often involving Somali-owned businesses and nonprofits.
Minn.’s Somali social-services scammers may have stolen $9 billion — New York Post
In recent charges related to autism and child care fraud in Minnesota, six additional defendants, many with Somali names, were charged with wire fraud and money laundering, part of schemes defrauding over $10 million since 2020.
Six Additional Defendants Charged, One Defendant Pleads Guilty in Ongoing Fraud Schemes — U.S. Department of Justice
📰 Sources (2)
- 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.