Minnesota Gov. Tim Walz pushed back this week against expanding fraud allegations tied to state-funded programs, following the rapid spread of a viral video that drew renewed attention to suspected misuse of public money involving childcare and learning centers in the Minneapolis area.
The controversy intensified after conservative YouTuber Nick Shirley released a 42-minute video on Friday documenting visits to multiple facilities in and around Minneapolis.
In the video, Shirley and a Minnesota resident identified as David traveled to locations allegedly owned by Somali immigrants and funded through state programs.
According to the footage, several sites appeared closed despite posted signage indicating they were operating, while staff at other locations declined to participate in on-camera interviews.
One building shown in the video displayed a sign reading “Quality Learing Center,” with the word “learning” misspelled.
In the video, Shirley said the center was listed as serving at least 99 children and had received roughly $4 million in state funds.
Here is the full 42 minutes of my crew and I exposing Minnesota fraud, this might be my most important work yet. We uncovered over $110,000,000 in ONE day. Like it and share it around like wildfire! Its time to hold these corrupt politicians and fraudsters accountable
We ALL… pic.twitter.com/E3Penx2o7a [1]
— Nick shirley (@nickshirleyy) December 26, 2025 [2]
The video’s claims and visuals quickly spread online, drawing national attention and prompting responses from state and federal officials.
A spokesperson for Walz addressed the allegations in a statement to Fox News, saying the governor has taken sustained action to address fraud risks.
“The governor has worked for years to crack down on fraud and ask the state legislature for more authority to take aggressive action. He has strengthened oversight — including launching investigations into these specific facilities, one of which was already closed,” the spokesperson said.
The spokesperson added that Walz has “hired an outside firm to audit payments to high-risk programs, shut down the Housing Stabilization Services program entirely, announced a new statewide program integrity director, and supported criminal prosecutions.”
Shirley later appeared on Fox News’ “The Big Weekend Show” on Sunday night, where he discussed his findings and the response to the video.
He described the alleged misconduct as readily apparent. He said the situation was “so obvious” that a “kindergartener could figure out there is fraud going on.”
“Fraud is fraud, and we work too hard simply just to be paying taxes and enabling fraud to be happening,” Shirley said during the appearance.
He added that the public reaction has already produced consequences.
“There better be change. People are demanding it. The investigation have been launched just from that video alone. So there better be change, like I said we work way too hard to be paying taxes and not knowing where our money’s going,” Shirley said.
Federal authorities have also signaled increased involvement. Federal Bureau of Investigation Director Kash Patel announced that the bureau had surged additional personnel to Minnesota to examine how public resources were distributed.
Patel said the move was part of a broader effort to “dismantle large-scale fraud schemes exploiting federal programs.”
According to federal investigators, as much as half of the approximately $18 billion granted to Minnesota since 2018 could have been lost to fraudulent activity, potentially totaling up to $9 billion.
Authorities say the alleged schemes span multiple programs and years.
As of Saturday evening, 86 individuals had been charged in connection with the fraud investigations, with 59 convictions reported so far.
Law enforcement officials have said that a majority of those charged come from Minnesota’s Somali community, though investigations remain ongoing and additional charges have not been ruled out.
The rapid spread of Shirley’s video has added momentum to the probes. By Sunday night, the video had surpassed 100 million views, according to publicly available metrics.
State and federal officials have said the heightened attention has increased public pressure for accountability and transparency in how taxpayer-funded programs are administered.
Walz’s office has maintained that the governor’s actions demonstrate a commitment to oversight and enforcement, while investigators continue to examine the scope of the alleged fraud.
Authorities have not announced a timeline for concluding the investigations, but officials have indicated that further developments are expected as reviews of records and facilities continue.