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Viral Video of Minneapolis Daycare Triggers Scrutiny Over Millions in Child-Care Payments

Federal and state investigators are pursuing wider fraud cases across Minnesota’s social-services programs as prosecutors warn potential losses could exceed $1 billion.

Overview

  • Independent journalist Nick Shirley posted footage of the Quality Learning Center appearing inactive and cited paperwork showing $1.9 million in 2025 CCAP disbursements and about $4 million in total.
  • State documents list the site as licensed for 99 children, local reporting tallied 95 violations between 2019 and 2023, and records show its license remains valid through 2026.
  • Rep. Tom Emmer publicly pressed Gov. Tim Walz for answers after the video circulated widely, and Elon Musk shared the clip on X.
  • Shirley claimed his one-day investigation identified more than $110 million tied to child-care centers he says were not operating as billed.
  • U.S. Attorney Joseph Thompson has said total fraud across the programs under investigation could top $1 billion, with the Treasury Department also examining Minnesota spending.