Walz defends record as viral video fuels Minnesota daycare fraud claims

Minnesota Gov. Tim Walz’s office is pushing back against allegations of fraud following a viral video showing visits to multiple child care centers in the state; One of them allegedly received millions of dollars in government funds despite being largely inactive.

Responding to questions about the allegations and a video posted by independent journalist Nick Shirley, the governor’s spokesman told Fox News that Walz had spent years “dismantling the fraud” and had taken steps to strengthen oversight of government programs, including launching investigations into several facilities.

“The governor has worked for years to crack down on fraud and seek greater authority from the state Legislature to take aggressive action,” the spokesman said. “It has strengthened oversight, including launching investigations into these specific facilities, one of which was already closed.”

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The spokesman added that Walz “hired an outside firm to audit payments to high-risk programs, completely shut down the Housing Stabilization Services program, appointed a new statewide program integrity director, and supported criminal prosecutions.”

The response follows the release of a 42-minute video posted by Shirley on X and YouTube on Friday, documenting visits to various daycares in the blue state, including one on Nicollet Avenue in Minneapolis.

The video shows Shirley and another man at a largely inactive child care facility. Although the center serves 99 children and receives nearly $4 million in state funds, the building also has a misspelled sign that reads “Center for Quality Education.”

Appearing on Fox News’ “The Big Weekend Show” on Sunday, Shirley said the alleged scam in Minnesota was “so obvious” that “a kindergartener could tell there was a scam going on.”

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Appearing on Fox News’ “Big Weekend Show” on Sunday, freelance journalist Nick Shirley said the alleged scam in Minnesota was “so obvious” that “a kindergartener could tell there was a scam going on.” (Fox News)

Shirley also suggested that other journalists may be reluctant to do similar reporting for fear of being labeled “Islamophobic” or “racist”.

“Fraud is fraud, and we work hard just to pay taxes and make sure the fraud happens,” he said.

The video sparked widespread outrage and over the weekend, Vice President J.D. Vance, Rep. Mike Lawler, R-Y., Donald Trump Jr. and led to criticism of Walz from many high-profile figures such as Elon Musk.

The White House on Sunday republished Education Secretary Linda McMahon’s X post, calling the alleged fraud a “breathtaking failure” that occurred on Walz’s watch.

Meanwhile, FBI Director Kash Patel said the agency is sending additional personnel and investigative resources to Minnesota as part of ongoing efforts to “dismantle large-scale fraud schemes that exploit federal programs.”

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FBI Director Kash Patel stands during a press conference in New York City on October 23, 2025. (Michael M. Santiago/Getty)

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The video went viral this week amid the burgeoning scandal enveloping the Walz administration and involving at least $1 billion lost due to alleged social services fraud largely tied to the Twin Cities’ Somali community.

Fox News’ Connor Hansen and Charles Creitz contributed to this report.