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FBI Elevates Minnesota Aid-Fraud Probes After Viral Video as Walz Defends Oversight

Federal agents say they have intensified investigations following a viral video alleging fraud at state-funded providers.

Overview

  • FBI Director Kash Patel said the Bureau had already surged personnel to Minnesota and called dismantling large-scale schemes a top priority, citing past results that include 78 indictments and 57 convictions tied to the Feeding Our Future case and referrals for possible denaturalization or deportation where eligible.
  • A 42-minute video by journalist Nick Shirley shows visits to reportedly inactive childcare sites, including a Minneapolis center licensed for 99 children that he says received over $4 million, and he claims his team identified more than $110 million in questionable payments in one day using public records.
  • Republican officials, including Rep. Mike Lawler and Minnesota Rep. Tom Emmer, urged hearings and accountability, and high-profile figures such as JD Vance and Elon Musk amplified calls for prosecutions in response to the video.
  • Assistant U.S. Attorney Joseph Thompson previously estimated that roughly half of $18 billion paid through 14 Minnesota-run programs since 2018 could show red flags for fraud, an estimate the Walz administration disputes as it contests multi-billion-dollar figures.
  • Walz’s office says it has launched investigations into specific facilities, hired an outside auditor for high-risk payments, shut down the Housing Stabilization Services program, appointed a statewide program integrity director, and supports ongoing criminal prosecutions, while Treasury reviews possible foreign transfers without announcing terrorism charges.