A viral 42-minute investigation video by social media influencer Nick Shirley has pushed Minnesota’s childcare assistance system into the national spotlight, triggering fresh scrutiny from federal authorities and fuelling a sharp political debate in the United States.
Allegations of empty centres, large payouts
The video, released on X, alleges widespread misuse of funds under Minnesota’s Child Care Assistance Program (CCAP). Shirley claims his team identified more than $110 million in suspicious payments made in a single day to licensed childcare facilities that appeared non-operational.
One such centre highlighted is the “Quality Learning Center” in Minneapolis, reportedly licensed for 99 children and said to have received $1.9 million in CCAP funds in 2025. However, daytime visits documented in the video show locked doors, dark windows and no visible activity.
Shirley was accompanied by a local investigator identified as David, who said he had observed several of these facilities for years without seeing children present. “This could be the largest fraud scandal in US history,” Shirley said in the video.
Federal response intensifies
Following what officials described as “recent revelations of widespread fraud”, US Labor Secretary Lori Chavez-DeRemer announced the deployment of a federal “strike team” to Minnesota in December 2025. The team will examine suspected fraud across multiple benefit programmes, including unemployment insurance.
Separately, the administration of former US President Donald Trump has announced the suspension of $5.5 million in annual Small Business Administration funding to Minnesota, citing alleged misuse of loan programmes, according to a Bloomberg report.
Pattern of alleged large-scale fraud
Federal authorities have described Minnesota as facing “industrial-scale” fraud across several public programmes since 2018, with estimates running as high as $8 billion. Whistleblowers, including a former auditor from Ramsey County, have previously flagged dozens of CCAP-related cases dating back to 2013, estimating losses exceeding $100 million.
Local media reports in October 2025 said felony charges had already been filed against four childcare centres in connection with CCAP fraud.
Political and social backlash
The video has also ignited partisan reactions online. Tesla CEO Elon Musk posted on X calling for action against Minnesota Governor Tim Walz, linking the allegations to broader claims of systemic misuse of welfare programmes. The controversy has drawn references to Minnesota’s immigrant communities and Democratic leaders, including Ilhan Omar.
State authorities have said investigations are ongoing and urged the public to avoid drawing conclusions until official probes are completed.