
New Delhi, January 5, 2026: A series of high-stakes compliance checks has been conducted by state authorities in Minnesota following a viral video that alleged widespread fraud in the local child care sector. In late December 2025, a right-wing influencer posted a 42-minute video claiming that several Twin Cities day care centers were receiving millions in public funds without actually serving any children. However, on January 2, 2026, the Minnesota Department of Children, Youth and Families (DCYF) announced that their inspectors found the facilities were functioning properly during unannounced site visits.
The investigations were carried out by the Office of Inspector General, targeting nine specific child care centers highlighted in the viral footage. According to official reports, children were observed to be present at eight of the nine facilities during the inspections. The ninth center, while empty at the moment of the visit, was found to be closed as scheduled and had not yet opened its doors for the day. State officials have clarified that the centers were “operating as expected,” contradicting the viral claims that they were “ghost facilities” existing only on paper.
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The controversy was ignited by YouTuber Nick Shirley, who filmed himself knocking on the doors of mostly Somali-owned day care centers, claiming they were inactive. The video, which has garnered over 100 million views, prompted the U.S. Department of Health and Human Services (HHS) to temporarily freeze federal child care funding for Minnesota on December 30, 2025. This federal response has been described by local providers and community leaders as a “hasty” action based on unvetted social media content, leading to significant financial uncertainty for thousands of working families.
While the immediate allegations of “empty buildings” have been refuted by state records, the DCYF noted that four of the nine centers are currently part of broader, pre-existing investigations. It was stated by the agency that these reviews range from routine billing audits to in-depth compliance checks. However, the department warned that the distribution of “unvetted or deceptive claims” has already resulted in real-world harm, including reports of vandalism at child care sites and a surge in harassing phone calls directed at immigrant business owners in the Twin Cities.
As of January 5, 2026, the state of Minnesota remains under pressure to provide additional verification to the federal government to unfreeze the essential funds. A deadline of January 9 has been set for the state to submit detailed attendance and billing records to satisfy federal auditors. While the political debate continues to swirl around government waste, the day care operators have reiterated that they are open and providing vital services. The focus now shifts to the final audit results, which will determine the long-term stability of the Child Care Assistance Program (CCAP) in the state.