Minnesota investigates child care centers following fraud accusations

Minnesota officials are investigating 55 day care providers, including four accused of fraud in a viral video by a conservative influencer, the state’s Department of Children, Youth and Families saidJan. 2.

The agency would not make officials available to comment on the nature of the investigations and whether they were launched in response to allegations contained in the viral video. A spokesperson for the department did not immediately answer which centers were under investigation or whether any payments had been withheld.

In a 43-minute YouTube video, Nick Shirley claimed Twin Cities day cares were receiving state funds despite not having any children present. He made that allegation after he and his camera crew visited 10 sites but failed to gain entry.

The video, which has gained millions of views, was praised and circulated by Republicans who have criticized Minnesota officials over fraud in the state’s Medicaid program.

So far, 15 people have been indicted for defrauding Medicaid programs for disabled adults and young people with autism. Federal prosecutors say more charges are to come.

Following the video, state regulators visited nine child care centers highlighted by Shirley. The agency said it found children present at all except one, which had not opened for the day when inspectors arrived. A 10th center highlighted in the video closed in 2022.

The nine centers are among the more than 1,200 day care centers across Minnesota that benefit from the Child Care Assistance Program (CCAP), which helps cover the cost of day care for about 23,000 children and 12,000 families each month. In 2024, the program cost $306 million.

Providers gathered at the Capitol Dec. 31 to criticize the announcement and warned day care centers could close swiftly if they can’t get paid for services.

“Fraud is never acceptable,“ said Amanda Schillinger, a child care center director, ”but cutting off child care funding to everyone in the state is not the answer, and it’s not acceptable.”

Minnesota Attorney General Keith Ellison said in a statement his office was “exploring all our legal options to ensure that critical child care services do not get abruptly slashed based on pretext and grandstanding.”

“The Trump administration is threatening funding for the essential child care services that countless families across Minnesota rely on — apparently all on the basis of one video on social media,“ Ellison said. ”To say I am outraged is an understatement.”

DCYF provided little information on the investigations into providers highlighted in Shirley’s video. But the department said those investigations can range from compliance checks to “longer, in-depth reviews comparing children present with billing records.”