Allegations of widespread fraud within Minnesota's taxpayer-funded social services have erupted once again, exposing what critics say is a years-long pattern of ignored warnings and political inaction. At the centre of the storm is Democratic Governor Tim Walz, who is facing intense scrutiny over his administration's response to claims that millions of dollars meant for low-income children have been siphoned off through fraudulent daycare centres and other schemes.
Viral Video Reignites Longstanding Allegations
The issue gained national attention over the 2025 Christmas period after a viral video from online influencer Nick Shirley. Shirley, a MAGA-aligned YouTuber with over one million subscribers, visited state-subsidized daycare facilities in Minnesota that were receiving substantial government funding. His footage showed empty buildings with no children present, raising immediate questions about where the public money was actually going.
However, this was not a new revelation. Investigations into fraud within Minnesota's Child Care Assistance Program (CCAP) and school nutrition initiatives date back to at least 2017 and 2018. Local news outlet Fox 9 in Minneapolis reported in 2018 that more than $100 million in cash had been flown out of the Minneapolis–Saint Paul International Airport in a single year, with funds often destined for countries like Kenya and Somalia. Alarmingly, some reports suggested a portion of the money was funneled to the al-Shabab terrorist group.
Official Reports Buried, Critics Dismissed
Despite clear evidence, the political response has been characterized by downplaying and dismissal. When fraud allegations surfaced previously, Democrat politicians and some media outlets often framed the scrutiny as racially motivated, arguing that Somali Americans relied on informal money transfer systems (hawalas) for legitimate purposes. Accusations were frequently labelled as part of a Republican witch hunt.
A critical report from Minnesota’s non-partisan Office of the Legislative Auditor found widespread fraud, noting that some daycare owners made large wire transfers to banks in the Middle East or Africa shortly after receiving large CCAP payments. This report landed on Governor Walz's desk shortly after he took office in January 2019, yet significant action appears to have been stalled.
The scale of the problem was further underscored in 2022 when the FBI uncovered what it described as the largest fraud scheme in the United States during the COVID-19 pandemic, also in Minnesota. Dozens were arrested in a plot that allegedly stole over $250 million from a federal program designed to feed needy children, with funds used to purchase real estate overseas.
Walz's Response and FBI's Pledge
Confronted with the latest wave of allegations, Governor Tim Walz has not announced new crackdowns but has instead repeated claims of racism and false narratives. Critics argue he is more concerned with offending key voting blocs within his electoral coalition than with stopping the pillaging of state coffers.
In contrast, the FBI has signalled a serious commitment to investigating the fraud. FBI Director Kash Patel stated on social media platform X that the bureau had already surged personnel and investigative resources to Minnesota to dismantle large-scale fraud schemes exploiting federal programs. "Fraud that steals from taxpayers and robs vulnerable children will remain a top FBI priority in Minnesota and nationwide," Patel posted.
The core question now is whether the current revelations will lead to accountability and systemic reform, or if they will be added to the pile of ignored warnings that stretch back nearly a decade. The evidence of massive fraud is well-documented; the political will to address it conclusively remains in doubt.
