State investigators said on Jan. 2, 2026, that nine Minnesota child-care centers named in a viral video were visited this week and found to be functioning when regulators conducted on-site checks. The video, posted late December by YouTuber Nick Shirley, alleged that nearly a dozen publicly funded day-care locations were not actually providing services. Minnesota’s Department of Children, Youth and Families (DCYF) said inspectors confirmed operations at the nine sites, collected evidence and opened further reviews where warranted. Federal and state agencies, meanwhile, have taken additional steps including a temporary federal funding hold and on-the-ground inspections by Homeland Security agents.
Key Takeaways
- Nine centers cited in the viral video were inspected this week; investigators reported that eight had children present during visits and one site had not yet opened for the day.
- DCYF said investigators “confirmed the centers were operating as expected,” gathered evidence and initiated further review on some locations.
- The Minnesota Child Care Assistance Program payments in fiscal 2025 to the nine named centers ranged from about $471,787 to $3.68 million, with a total allocation across these centers exceeding $17 million.
- The program supports roughly 23,000 children and 12,000 working families in an average month and receives hundreds of millions of federal dollars annually; the federal Administration for Children and Families reported roughly $185 million flows to Minnesota each year.
- DCYF is conducting additional inquiries into four of the nine centers but has not publicly identified which sites are under investigation or the specific allegations.
- One center referenced in the video, Mako Child Care Center, has been closed since 2022 according to the state; another, Quality Learning Center, notified the agency on Dec. 19 that it might close but remained open when licensing staff visited on Dec. 29.
- CBS Minnesota’s review of nearly a dozen named locations found active licenses at all but two sites and regulatory visits to active locations within the last six months; inspectors recorded multiple citations for safety and training issues but did not find clear evidence of fraud in state records.
Background
The controversy began after a late-December video by conservative content creator Nick Shirley alleged that nearly a dozen Minnesota day-care centers receiving public funds were not providing services while still drawing payments. Those claims quickly attracted attention from state and federal officials because they echoed earlier, high-profile fraud cases tied to social services and benefit programs in the state. For years Minnesota has faced investigations and prosecutions over alleged misuse of public programs including child nutrition, disability services, and housing assistance; the Shirley video intensified scrutiny of child-care subsidies in particular.
Minnesota’s Child Care Assistance Program is administered with both state oversight and federal funding, and serves thousands of families monthly. The mix of public dollars and private providers makes the program vulnerable to both administrative errors and deliberate misconduct, which is why state licensing and the Office of Inspector General periodically conduct compliance checks. The recent sequence of a viral allegation, rapid media coverage, and multi-agency responses set the stage for inspections and demands for provider verification from federal partners.
Main Event
DCYF’s Office of Inspector General and licensing teams carried out on-site compliance checks this week at nine centers referenced in the video. Inspectors found children present at eight locations; at one site staff were not yet serving children because the facility had not opened for the day. According to the agency, investigators collected evidence during visits and opened additional reviews where questions remained.
DCYF released fiscal 2025 payment figures for the nine centers named in the video, showing a wide range of annual reimbursements: from about $471,787 at the lowest-reimbursed center to $3.68 million at the highest. Those amounts reflect state-administered subsidies paid through the Child Care Assistance Program and do not by themselves indicate wrongdoing, the agency emphasized. Licensing records show that most active locations had recent regulator contact — one, Sweet Angel Child Care, had an unannounced inspection as recently as Dec. 4, 2025.
Separately, federal involvement escalated after the video circulated. Department of Homeland Security agents conducted inspections in Minneapolis on Dec. 29, an action described publicly by a federal official as a broad enforcement effort. On Dec. 30 the Department of Health and Human Services announced it was pausing some federal child-care funding to Minnesota while seeking verification of recipients. DCYF has been given a deadline of Jan. 9 to provide information requested by the federal administration.
Analysis & Implications
The immediate outcome is a heightened compliance posture and increased administrative burdens on providers. Requiring documentation and answering federal and state queries will consume staff time and records capacity at centers already operating on thin margins. For small providers, repeated inspections and funding uncertainty could disrupt operations and risk reducing capacity for families who rely on subsidized care.
Politically, the episode amplifies a long-running narrative about fraud in Minnesota’s social programs, creating pressure on state officials to demonstrate swift action. That can push agencies to prioritize visible enforcement steps — site visits, public statements, and paperwork — over longer-term investments such as improved auditing systems or provider support. The result may be short-term reassurance for policymakers and the public, but persistent structural vulnerabilities could remain unaddressed.
From a fiscal perspective, the federal freeze and demands for verification signal that Washington will not tolerate unclear accountability where large sums are involved. If federal agencies withhold funds for an extended period, the immediate risk is reduced access for families who depend on subsidies. Conversely, if the reviews clear most providers, the freeze could be lifted quickly but still leave reputational damage that hinders recruitment and retention of staff in the sector.
Comparison & Data
| Child-care Center | Fiscal 2025 Payments |
|---|---|
| Super Kids Daycare Center | $471,787 |
| Future Leaders Early Learning Center | $3,680,000 |
| Quality Learning Centers | $1,900,000 |
| Tayo Daycare | $1,090,000 |
| Minnesota Child Care Center | $2,670,000 |
| Mini Child Care Center | $1,600,000 |
| Sweet Angel Child Care | $1,540,000 |
| ABC Learning Center | $1,040,000 |
| Minnesota Best Child Care Center | $3,400,000 |
The listed payments show considerable variation: two centers received more than $3 million in fiscal 2025 while others were reimbursed under $500,000. Those figures reflect enrollment levels, reimbursement rates, and the mix of services provided, and do not on their own establish misuse. Across Minnesota, the child-care assistance program serves roughly 23,000 children and 12,000 working families in an average month, underlining the program’s scale and the potential impact of any prolonged funding disruption.
Reactions & Quotes
“Investigators confirmed the centers were operating as expected, gathered evidence and initiated further review.”
Minnesota Department of Children, Youth and Families (official statement)
DCYF framed the inspections as routine compliance work in response to public reports, emphasizing evidence collection and targeted reviews rather than blanket accusations. The agency also noted it would pursue follow-up actions where records or practices warranted additional scrutiny.
“A massive investigation on childcare and other rampant fraud”
Kristi Noem (quoted on federal enforcement activity)
South Dakota Governor Kristi Noem publicly described the federal response as large-scale; that characterization reflects the heightened federal involvement but does not itself document specific cases of wrongdoing at the centers inspected this week.
“The Administration for Children and Families sends some $185 million in child care funds to Minnesota annually.”
Alex Adams, Administration for Children and Families (statement)
HHS messaging highlighted the dollar scale of federal support flowing to Minnesota’s child-care system and explained the rationale for seeking verification of recipients before releasing additional funds.
Unconfirmed
- Which four of the nine centers are under ongoing investigation has not been disclosed publicly by DCYF; the nature and scope of those investigations remain unspecified.
- The viral video’s broader claim that numerous centers were systematically billing while not providing services lacks corroboration in publicly available records cited by state regulators and CBS Minnesota’s review.
- The full extent and outcomes of the DHS inspections conducted Dec. 29 — including whether they yielded evidence of criminal activity at inspected sites — have not been publicly released.
Bottom Line
State inspectors reported that nine Minnesota child-care centers named in a viral video were functioning when visited this week, and DCYF has opened additional reviews where questions remain. The episode has prompted rapid federal engagement, including Homeland Security site checks and a temporary pause on some federal child-care funds, raising both short-term disruption risks and long-term accountability questions.
For families and providers, the most immediate concern is continuity of care: verification processes and funding holds could strain small centers and complicate access for families who depend on subsidies. For policymakers, the challenge is twofold — to quickly address any verified misconduct while simultaneously strengthening routine oversight and support so that children and working families do not bear the costs of administrative or enforcement actions.