Federal agents raided 20 Minnesota childcare centers highlighted by YouTuber Nick Shirley, exposing potential billions in taxpayer fraud while state officials downplay the scale, fueling bipartisan outrage over government waste.
Story Snapshot
- FBI executed search warrants at 22 Minneapolis businesses, including Shirley’s targeted sites like Mini Childcare Center and Quality Learning Center, on April 28, 2026[1].
- Shirley’s 2025 video prompted Health and Human Services to freeze $185 million in Minnesota childcare funding and Justice Department charges against 98 people, 85 of Somali descent, with over 60 convictions[3][4].
- Prosecutors report $9 billion in suspected fraud across 14 Minnesota Medicaid programs since 2018, with centers billing millions despite appearing vacant.
- Shirley alleges $170 million in California daycare fraud, mirroring Minnesota patterns with empty facilities receiving massive payments[3].
- State probes found no initial fraud evidence, but federal actions continue amid lawsuits from affected centers[1][2].
Shirley’s Investigations Ignite Federal Response
YouTuber Nick Shirley, born in 2002, visited nearly a dozen Minnesota childcare centers in December 2025, filming empty or inactive facilities while citing public records showing millions in government payments[2]. Two businesses in one building received over $5 million in two years for claiming 90 daily children, per Shirley’s documentation compiled with collaborator “David”[4]. His video garnered 135 million X views and 3 million YouTube views, prompting federal scrutiny[2].
Health and Human Services froze childcare payments to Minnesota following the video, as Attorney General Pam Bondi confirmed Justice Department charges against 98 individuals, over 60 convicted[3][4]. FBI Director Kash Patel called the exposed fraud “the tip of a very large iceberg,” with investigations ongoing[3]. First Assistant U.S. Attorney Joe Thompson flagged 14 high-risk programs costing $18 billion since 2018, suspecting over half fraudulent[3].
Federal Raids Target Shirley-Highlighted Sites
On April 28, 2026, federal agents raided about 20 Minneapolis childcare centers, including Mini Childcare Center and Quality Learning Center featured in Shirley’s video[1]. CBS News observed agents photographing and seizing file cases at Mini Childcare, though no arrests occurred[1]. Prosecutors link raids to fraudulent billing for unprovided services, part of broader probes into $9 billion Medicaid fraud.
Department of Homeland Security deployed 2,000 agents to Twin Cities for fraud and immigration crackdowns, with Secretary Kristi Noem involved[4]. Immigration and Customs Enforcement’s Operation Metro Surge followed, amid frozen federal funding[2]. These actions validate Shirley’s claims of irregularities, despite no immediate arrests[1]. Quality Learning Center closed post-video, unable to reopen without relicensing after operational violations[4].
State Pushback and Broader Fraud Patterns
Minnesota state officials reported no fraud evidence at Shirley’s sites as of December 2025 and January 2026, citing active licenses and inspections like a December 4 unannounced visit finding safety issues but no fraud[1][2]. Three centers sued the Department of Children, Youth and Families in February 2026, alleging unfair fund withholding over minor record-keeping amid federal pressure[1].
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— M.A. Rothman (@MichaelARothman) May 9, 2026
Shirley’s work extends to California, alleging $170 million daycare fraud and $267 million in hospice scams via Operation Skip Trace, with spending surging 1,000% in stagnant populations[3]. This fits Government Accountability Office reports of 300% fraud complaint rises in subsidized programs post-2020 American Rescue Plan[neutral context]. Bipartisan frustrations grow over elite protection of wasteful spending, eroding trust in federal oversight.
Sources:
[1] From Nick Shirley’s viral video to new federal raids – CBS Minnesota
[3] Nick Shirley alleges $170M California daycare fraud in new video …
[4] Nick Shirley defends his childcare fraud claims amid scrutiny of viral …