Minnesota loses Federal child care funding as FBI and DHS escalate fraud crackdown after viral YouTuber allegations – We Got This Covered
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Minnesota loses Federal child care funding as FBI and DHS escalate fraud crackdown after viral YouTuber allegations

Legal routes are far more reliable for long-term solutions.

On Dec. 26, Nick Shirley took to X and YouTube to post a 42 minute documentary where he did spot checks on a handful of federally funded institutions in Minnesota that are owned by Somali immigrants. Over the past few days the documentary has only grown and captured public interest — prompting Sec. Robert F. Kennedy Jr.’s Department of Health and Human Services to announce a freeze to the state’s child care funding.

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The video is definitely going to be one of the main political stories in early 2026. President Donald Trump has already expressed his distaste for Minnesota Rep. Ilhan Omar, even going as far as making personal jabs about her personal life. Furthermore, Trump has also made his distaste for Gov. Tim Walz even more clear and used one of his unhinged Truth Social posts to call him a slur.

But when Shirley’s documentary first built an audience, it was apparent that any past political sand lines wouldn’t matter anymore. In fact, at some point about halfway during the runtime, a lady who was trying to stop Shirley and his affiliate, thinking they worked for ICE, had to step back after they presented her with what they claimed to be proof of fraud.

The documentary just follows the two as they try to access daycare and healthcare facilities that claim to host about 90 children. Shirley and his affiliate claim that there are no children who ever get hosted at the facilities and that these taxpayer funded institutions are simply elaborate ruses for fraud.

It’s important to state that the owners of the institution have denied Shirley’s claims from his one-day check. They claim it’s far more complex than that. Some of the facilities allegedly do house calls and some apparently host kids after school hours. The investigations are ongoing and more answers will trickle in by the day.

On Dec. 30, the Department of Health and Human Services took to their official X account and announced that the federal agency will be freezing child care payments to the state in response to the video. Vice President JD Vance was one of the first government officials to applaud the move by writing, “Turning off payments and forcing verification before taxpayer money flows out the door is one of the most important steps we can take to end the fraud in Minnesota. But there will be many more to come.”

According to NBC, Gov. Tim Walz didn’t take too well to the announcement. Walz didn’t deny the possibility of fraud — instead he just said that tracking down the people using the program for fraud and personal gain have been getting tracked down diligently over the course of many months. But it’s unlikely that the Trump administration will be on the same page, considering how much they have favored extrajudicial strikes and deportations.

Walz blamed the president for politicizing the matter — and added that the program is still useful to the other non fraudulent Minnesotans. There is a high likelihood that fraud is going on in that particular vertical in Minnesota, but blanket punishments rarely work. Legal routes are far more reliable for long-term solutions.


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Author
Image of Fred Onyango
Fred Onyango
Fred Onyango is an entertainment journalist who primarily focuses on the intersection of entertainment, society, and politics. He has been writing about the entertainment industry for five years, covering celebrity, music, and film through the lens of their impact on society and politics. He has reported from the London Film Festival and was among the first African entertainment journalists invited to cover the Sundance Film Festival. Fun fact—Fred is also a trained pilot.