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FBI Expands Minnesota Fraud Investigations After Viral Daycare Video

Prosecutors warn of multibillion‑dollar losses across state‑run programs, prompting Minnesota leaders to promote audits and enforcement.

Overview

  • FBI Director Kash Patel said the bureau had already surged personnel to Minnesota and will keep following the money, citing the earlier $250 million Feeding Our Future case and possible immigration referrals for eligible offenders.
  • Independent journalist Nick Shirley’s 42‑minute report drew 100 million-plus views on X and alleges some licensed daycares appeared inactive despite large public payments, with specific site‑level funding claims not yet verified by auditors or courts.
  • Governor Tim Walz’s office said it strengthened oversight, launched investigations into flagged facilities, closed one site, hired an outside firm to audit high‑risk programs, shut down Housing Stabilization Services, and named a statewide program integrity director.
  • First Assistant U.S. Attorney Joe Thompson has estimated $9 billion or more may have been stolen from 14 Minnesota‑run programs since 2018, with prosecutions ongoing and many defendants identified by the U.S. attorney’s office as Somali Americans amid concerns about community stigmatization.
  • Vice President JD Vance and Education Secretary Linda McMahon praised Shirley’s video, and House Speaker Mike Johnson said House Oversight expanded its inquiry and requested records and interviews from Minnesota and federal officials.