Viral Video Sparks Federal Freeze on Minnesota Child Care

New Delhi, December 31, 2025: A massive political and legal storm has been ignited by a viral investigative video targeting Minnesota’s Child Care Assistance Program (CCAP). On December 26, 2025, independent YouTuber Nick Shirley released a 42-minute exposé titled “I Investigated Minnesota’s Billion Dollar Fraud Scandal,” which has since amassed over 100 million views across X and YouTube. The footage portrays several Somali-run daycare centers in Minneapolis as “ghost facilities” that allegedly receive millions in taxpayer funds despite appearing completely inactive or locked during business hours.

Inside the “Quality Learing Center” Scandal

One of the most shared segments of the video focuses on a facility identified as the “Quality Learing Center.” The center, which gained notoriety for the misspelling of the word “learning” on its front sign, was reported to have received approximately $1.9 million in CCAP funding in 2025 alone. Shirley was observed filming the building’s dark windows and empty parking lot, claiming that a center licensed for nearly 100 children showed no signs of operation. While the manager of the center has since denied these allegations—stating the video was recorded outside their specific operating hours—the image of the misspelled sign has become a symbol of the broader “oversight failure” being alleged by critics.

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Federal Action: The Funding Spigot is Turned Off

The fallout from the viral video was witnessed at the highest levels of the federal government on December 30, 2025. In a move that has sent shockwaves through the state, Deputy HHS Secretary Jim O’Neill announced an immediate freeze on all federal child care payments to Minnesota. O’Neill was heard stating that “blatant fraud” appeared rampant and that the agency has demanded a “comprehensive audit” of every center featured in the clip. This federal intervention marks a significant escalation, as the Administration for Children and Families now requires photographic evidence or receipts for all state-level child care disbursements nationwide.

State Regulators vs. Federal Investigators

While federal agencies like the FBI and Homeland Security (DHS) have surged resources into Minneapolis for “door-to-door” checks, state officials have been observed defending their oversight efforts. Tikki Brown, Commissioner of the Minnesota Department of Children, Youth, and Families, confirmed that each of the ten facilities in the video had been visited by state inspectors within the last six months. During those unannounced visits, children were reportedly found to be present and attendance records appeared consistent. Governor Tim Walz has been heard describing the federal freeze as a “transparent attempt to politicize” the issue, though he has vowed to continue cracking down on any proven bad actors.

A Growing Crisis of Trust in 2026

As the year 2025 draws to a close, the “daycare fraud” saga has reignited a fierce national debate over the $9 billion in potential losses across Minnesota’s public assistance programs. The viral video has placed the state’s Somali-American community under intense scrutiny, leading to reports of harassment and threats against local business owners. With federal prosecutors characterizing the situation as “industrial-scale fraud,” the coming months of 2026 are expected to bring further indictments and a complete overhaul of how quick-commerce child care funding is monitored across the United States.