State officials pushed back Friday against claims made in a viral video that sparked a national controversy over alleged fraud at Minneapolis day care centers, many operated by Somali Americans.
The Minnesota Department of Children, Youth, and Families said investigators with its Office of Inspector General conducted compliance checks at nine centers referenced in the video and “confirmed the centers were operating as expected, gathered evidence and initiated further review.”
The statement came in response to a 42-minute video posted December 26 by Nick Shirley, a 23-year-old conservative YouTube content creator, which claimed to show evidence of widespread fraud at child care facilities receiving government funding. The video, which received more than 2.6 million views, was shared by Vice President JD Vance, FBI Director Kash Patel and former Department of Government Efficiency leader Elon Musk.
The Trump administration responded to the video by announcing a freeze on federal child care funding and launching investigations. President Donald Trump made multiple social media posts attacking Minnesota’s Somali community.
Day care operators featured in the video disputed the allegations and said they face harassment and threats following its release. Nasrulah Mohamed, who spoke at a press conference at the Nokomis Day Care Center, said facilities have received hateful voicemail messages threatening staff, and one center experienced a break-in with sensitive documents stolen.
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Federal officials freeze Minnesota child care payments amid fraud allegations
Federal health officials announced Tuesday they are halting child care payments to Minnesota and implementing stricter requirements nationwide in response to allegations of widespread fraud at day care facilities.
Ahmed Hasan, director of ABC Learning Center, said the YouTuber showed up at his facility’s front entrance around noon on December 16. During winter, most parents use the back entrance, and Shirley stayed only a few minutes, he said. “There were kids here all the time. I was also here,” Hasan told reporters.
A Star Tribune review of state enforcement records and court filings showed that none of the individuals publicly identified as owners or operators of the 10 businesses featured in the video have been charged with fraud or any other felonies. However, seven of the eight facilities with publicly available licensing records have been cited by the state for violations over the past four years.
The facilities received between $471,787 and $3.68 million in Child Care Assistance Program funding in fiscal 2025, according to state data. One center shown in the video, Mako Child Care Center, has been closed since 2022.
Attorney Jason Steck, who represents operators of Minnesota Best Childcare Center featured in the video, said his Somali clients have received hundreds of death threats since the video went viral. “Everybody is very scared right now of being targeted. Nobody wants to stick their head up. Nobody wants to get shot,” Steck said.
Minnesota Attorney General Keith Ellison criticized the Trump administration’s funding freeze, saying the government is threatening child care services apparently based on one social media video. “To say I am outraged is an understatement,” Ellison said in a statement.
The Department of Health and Human Services announced stricter verification measures for child care funds nationwide following the video. Deputy Secretary Jim O’Neill said federal dollars would be frozen to centers under suspicion until they release extensive documentation.
Several day care directors said people flooded their centers’ phones with harassing calls. Some callers pretended to be looking for child care or threatened to call Immigration and Customs Enforcement.
The state investigations are ongoing. The Department of Children, Youth, and Families said it is committed to ensuring Child Care Assistance Program funds are being used as intended and will take action if concerns raised in the video are found to be true.
The controversy comes amid broader state and federal fraud investigations of 14 Minnesota-run safety net programs. However, the viral video specifically targeted child care facilities, many in Minneapolis’ Somali community, leading to accusations of ethnic targeting and threats against operators.
