A daycare centre in Minnesota, which appears largely vacant, has reportedly received up to $4 million in state and federal taxpayer funds. This revelation comes as Minnesota grapples with widespread allegations of fraud within its social safety net programmes, potentially amounting to billions of dollars.
Viral Video Sparks National Outrage
The controversy gained national attention after a video posted to X by independent journalist and pro-Trump influencer Nick Shirley went viral. The clip, viewed over 65 million times in less than two days, accuses Minnesota authorities of allowing what he termed the 'largest fraud in US history' to continue unchecked.
In the video, Shirley visits the Quality Learning Center in Minneapolis, questioning where the public money has gone. The facility's sign misspells 'Learning' as 'Learing', its parking lot is mostly empty, and the lobby appears dark. Shirley claimed his investigation uncovered over $110 million in potential fraud in a single day.
Minnesota Republican Representative Tom Emmer responded directly on X, writing: 'Four million dollars of hard-earned tax dollars going to an education centre that can't even spell learning correctly. Care to explain this one, Tim Walz?'
A Pattern of Systemic Failures and Violations
While the Quality Learning Center has not been formally accused of wrongdoing by prosecutors, state records reveal a troubling history. During a licensing review on June 23, 2025, an inspector cited the centre for 11 violations. These included:
- Failing to maintain safe play areas.
- Keeping items in infants' cribs.
- Not following doctors' instructions for prescription medicine.
- Hiring an unqualified substitute caregiver.
Since May 2022, the daycare has racked up 121 violations, including allegedly failing to request background checks for 14 employees. Despite this, the only penalties have been two separate $200 fines.
Minnesota House Speaker Designate, Republican Rep. Lisa Demuth, told local station KSTP this case shows 'oversight is incredibly lacking', citing repeated failures to protect children.
Broader Context of Multi-Billion Dollar Fraud Allegations
The daycare allegations are part of a much larger scandal engulfing Minnesota's social programmes. Federal prosecutors allege systemic fraud where providers submitted false invoices for services never rendered.
Key programmes affected include:
- Child nutrition: Nonprofit Feeding Our Future is accused of misappropriating $250 million intended for low-income children's meals, with funds allegedly spent on luxury items and property abroad.
- Housing assistance: One programme ballooned from a budgeted $2.6 million to $104 million, largely due to fake billing.
- Autism therapy: A scheme meant to provide therapy allegedly provided no real services.
The alleged fraud is so severe that in early December, Dr. Mehmet Oz, Administrator for the Centers for Medicare & Medicaid Services, threatened Governor Tim Walz with withholding federal Medicaid funds if major changes were not implemented.
Conflicting Figures and Official Response
Funding figures for the Quality Learning Center are disputed. While Shirley's team presented evidence of $1.9 million in 2025 from Minnesota's Child Care Assistance Programme (CCAP), and a total of $4 million, KSTP's January investigation found the centre received $7.8 million in federal dollars since 2019.
During Shirley's visit, a woman at the centre mistakenly identified him as an ICE officer, shouting 'Don't open up! It's ICE!' before he clarified he was a YouTuber investigating potential fraud.
The growing scandal places immense pressure on Governor Walz's administration to explain the apparent lack of oversight and accountability for the use of vast sums of public money meant for society's most vulnerable.
