Indy Journalist Accuses Gov. Walz Of $110 Million Child Care Fraud In Viral Video

Introduction — A Viral Story That Captured National Attention

At the end of December 2025, a 42-minute video published by independent journalist and YouTuber Nick Shirley alleged massive fraud involving Minnesota child-care facilities funded by federal and state programs. The video quickly went viral, garnering tens of millions of views on platforms like X (formerly Twitter) and YouTube and thrusting Minnesota Governor Tim Walz into national political controversy.

Shirley’s central claim? That multiple childcare centers in the Minneapolis area were allegedly receiving government money — substantially — despite being inactive or not actually caring for children. He and an associate visited 10 or more facilities, recording what appeared to be empty or inactive sites while citing public payment data. Shirley and others in the video claimed that the total fraudulent payments to such centers exceeded $110 million.

Who Is Nick Shirley and What Did the Video Show?

Nick Shirley is a 23-year-old independent content creator known for politically charged, right-leaning videos. His Minnesota fraud exposé shows him visiting childcare centers in Minneapolis and surrounding areas that receive public funding through programs like the Child Care Assistance Program (CCAP), which subsidizes care for low-income families.

In the video:

Shirley often finds facilities with locked doors, no visible children in plain view, and minimal outside evidence of active operations.

At one location called Quality Learning Center, he highlighted a misspelled sign and claimed it had received millions in state funds despite apparently being empty.

Shirley criticized Minnesota authorities for alleged lax oversight and tied these findings to broader concerns about waste in social services.

Shirley’s narrative connects the daycare allegations to other ongoing fraud investigations in the state — most notably a larger scandal involving Feeding Our Future, a nonprofit that prosecutors say diverted federal COVID-19 pandemic child nutrition funds. However, the direct connection between that criminal case and these daycare facilities is legally separate.

What Are the Core Claims?

Supporters of Shirley’s reporting have amplified three main points:

Public dollars were disbursed to childcare sites that, at the times visited, did not appear active or to serve children.

The cumulative total of possible fraud in these facilities could be $110 million or more, according to Shirley’s review of payment data.

State oversight mechanisms allegedly failed under Gov. Walz’s administration to detect or stop this supposed misuse of taxpayer funds.

Some local Republican figures praised Shirley’s work and pushed for more accountability. Vice President JD Vance reposted the video and said Shirley had done “far more useful journalism” than traditional outlets, while GOP lawmakers like Rep. Mike Lawler and others criticized Walz’s oversight.

Sen. Ron Johnson has reportedly sought records from Minnesota’s Department of Human Services tied to the alleged fraud and Walz’s actions while in office. In his letter, Johnson referenced reports of “$111 million in fraudulent payments” tied to daycare centers cited by Shirley.

Official Responses and Investigations
Minnesota Officials’ Statements

Minnesota state officials, including Walz’s office and regulators, have rejected the characterization of the situation:

Walz’s office has argued that state government has worked for years to combat fraud, pointing to audits, investigations, and oversight improvements.

The Minnesota Department of Children, Youth, and Families says inspectors have visited the facilities highlighted in the video within the last six months and found children present, and none of these official inspections discovered fraud.

Inspectors also stress that visits by journalists at singular points in time do not reflect normal operations, and closed doors or children not being visible from outside does not prove a center is inactive.

Federal Actions

Federal agencies did respond:

Following the video’s wide circulation, officials from the Department of Homeland Security and the Federal Bureau of Investigation reportedly increased their scrutiny in Minnesota.

At one point, federal funding for child care through certain programs was temporarily frozen while compliance reviews were undertaken.

However, those actions were part of broader fraud investigations already underway, and authorities have not publicly confirmed the specific figures cited in Shirley’s video as verified fraud totals.

Independent and Media Scrutiny

Several mainstream news organizations and fact-checking outlets have examined the claims:

CBS News conducted its own review of some centers mentioned by Shirley and found that most had active licenses and were visited regularly by regulators within the last six months, without fraud findings.

Some critics point out that video visits at a single moment in time (for example when children are in a classroom during the morning but not visible from the street) do not prove ongoing fraud.

Independent fact-checkers note that Shirley’s method — knocking on doors or peering through windows — is not sufficient evidence to establish that the centers were not serving children.

Public discussion on social platforms includes claims that parts of the video may have been misleading, selective, or lacking fuller context. Users have pointed to postings showing active classroom settings at times when Shirley’s footage was filmed.

Political Fallout and Broader Impact

The release of the video has had significant political and social ripple effects:

Some GOP politicians used the footage to demand heightened oversight of Minnesota welfare programs and documentation from Walz’s administration.

The controversy has intersected with broader debates over immigration, social services, and fraud enforcement, particularly in narratives about Somali-American communities who operate many childcare businesses in Minnesota.

There are reports from multiple outlets that Somali-run childcare providers have experienced harassment and intimidation in the wake of the viral narrative.

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