A widely viewed video by independent journalist Nick Shirley alleges that a network of daycare centers in Minnesota — many reportedly Somali-owned and some appearing inactive or empty — received tens of millions of dollars in public funding, with Shirley claiming over $110 million in suspect payments uncovered in a single day of field investigation. The clips triggered intense political scrutiny, including GOP calls for answers from Gov. Tim Walz, though official investigations have not yet corroborated the full scope of the claims and authorities caution that footage alone doesn’t prove criminal fraud.
What the Viral Nick Shirley Video Shows
On December 26, 2025, a 42-minute video posted to X (formerly Twitter) by Nick Shirley — a social media journalist with a large follower base — went viral. The footage documents Shirley and a companion visiting several licensed childcare centers in Minneapolis and St. Paul that:
- Appear closed or empty of children and staff despite being operational licenses.
- Feature blacked-out windows, locked doors, and misspelled signage (e.g., “Quality Learing Center”).
- Claim significant state funding in public records, yet show no visible childcare activity.
In one segment, Shirley attempts to enroll a child and is told he cannot; in another, his presence prompts a woman to shout accusations of “ICE” as he approaches a center door.
The video includes overlays of billing documentation allegedly showing payments made through the Minnesota Child Care Assistance Program (CCAP) — a mixed federal-state program designed to help families afford daycare — to these centers. One example cited shows nearly $1.9 million in CCAP funds to one center in 2025 alone.
Shirley claims the combined total of questionable payments his team observed in one day exceeds $110 million, though no independent audit or law enforcement confirmation of that figure has been publicly released.
The Political Backlash: GOP Demands & Walz Response (or Lack Thereof)
Almost immediately after the video spread on social platforms and conservative networks, Republican lawmakers and commentators seized on the footage:
- GOP leaders demanded answers from Minnesota Gov. Tim Walz, alleging mismanagement of daycare funding and calling for accountability.
- House GOP figures urged more transparency and “an accounting” of how taxpayer funds were allocated to facilities that seemed non-operational.
- Some national conservative voices, including politicians like Rep. Mike Lawler and Vice President JD Vance, praised Shirley’s reporting and called for prosecutions.
Despite the mounting pressure, as of this writing Gov. Walz has not publicly provided a detailed response to the specific video claims nor confirmed the full extent of any alleged misallocation.
A Broader Context: Minnesota’s Ongoing Fraud Issues
The Shirley video didn’t emerge in a vacuum. Minnesota has been under federal scrutiny for years over alleged fraud in state benefit programs. Independent reporting — cited by agencies and news outlets — suggests:
- Industrial-scale misuse of welfare funds might total in the billions in recent years.
- Federal teams, including a U.S. Labor Department strike force, have been deployed to assist in probing fraud beyond daycare assistance.
- State social services, including healthcare, housing, and childcare programs, have been part of multiple investigations into suspect billing and fake claims.
However, it’s crucial to note that while broader systemic fraud probes are underway, the specific claims in Shirley’s video (especially the $110 million figure and the allegation that entire networks of Somali-owned daycares are fronts) have not been formally verified by law enforcement or state auditors.
Understanding What Is — and Isn’t — Verified
Verified or Officially Reported:
- A viral video by Nick Shirley documents visits to Minnesota childcare sites that appeared inactive.
- The video alleges tens of millions of dollars in public funding tied to those centers.
- GOP politicians have publicly demanded accountability and answers from Gov. Walz.
- Minnesota’s broader social services system is already under federal inquiry for potential misuse.
Not Yet Independently Verified:
- That the centers visited are definitively engaging in fraud.
- That $110 million in daycare funds were conclusively misused.
- That the video accurately reflects the operational status of the centers from an official audit perspective.
- That any law enforcement has charged operators of the visited daycares over these specific claims.
Those distinctions matter, because footage of empty buildings — while eyebrow-raising — doesn’t by itself prove illicit behavior; multiple factors (timing of visits, off-peak hours, data misinterpretation) can create misleading impressions without formal investigation. This nuance is often lost in social media summaries.
Minnesota Daycare Funding Controversy: Claims vs. Confirmed Facts
1. Alleged $110 Million in Fraud
| Viral Claim | What Public Data Confirms |
|---|---|
| Nick Shirley claims $110 million in taxpayer funds were tied to empty or inactive daycares, discovered in one day. | No official audit or law-enforcement report has confirmed a $110M fraud figure tied specifically to the locations shown in the video. |
| Video overlays suggest massive CCAP payouts to multiple centers. | Public CCAP data does show some individual centers receiving hundreds of thousands to over $1M annually, but totals vary and do not automatically imply fraud without audits. |
Status: ⚠️ Unverified aggregate figure
2. Empty or Non-Operational Daycare Centers
| Viral Claim | What Public Data Confirms |
|---|---|
| Several licensed daycares appeared empty, locked, or inactive during visits. | Licensing databases confirm that many of these centers are licensed or were licensed at the time, but licensing does not require children to be present at all hours. |
| Misspelled signs and closed doors imply fake businesses. | State regulators note that appearance alone is not proof of fraud; inspections, attendance logs, and billing records determine compliance. |
Status: ⚠️ Visual evidence only; intent unproven
3. CCAP (Child Care Assistance Program) Payments
| Viral Claim | What Public Data Confirms |
|---|---|
| CCAP was allegedly used to funnel money to shell daycares. | CCAP is a real federal-state program that has historically been vulnerable to abuse, and Minnesota has acknowledged oversight weaknesses. |
| Payments shown imply criminal misuse. | Payments alone are not illegal; fraud requires proof of false attendance records, fake children, or duplicate billing. No such findings have yet been published for the centers shown. |
Status: 🟡 Systemic risk acknowledged, case-specific proof pending
4. Somali-Owned Daycares as a Network
| Viral Claim | What Public Data Confirms |
|---|---|
| Video implies a coordinated network of Somali-owned daycares committing fraud. | Public records confirm some centers are Somali-owned, but no official report confirms a coordinated ethnic-based fraud network tied to this video. |
| Suggestion of widespread organized abuse. | Authorities and experts caution against generalization, emphasizing that ownership ethnicity is not evidence of wrongdoing. |
Status: ❌ Not substantiated
5. Political Accountability & Gov. Tim Walz
| Viral Claim | What Public Data Confirms |
|---|---|
| Gov. Tim Walz is accused of ignoring or enabling fraud. | Walz has not issued a detailed response to the specific video, but Minnesota has ongoing fraud task forces addressing multiple benefit programs. |
| Calls for resignation or prosecution. | No charges or findings currently link Walz personally to daycare-specific misconduct shown in the video. |
Status: 🟡 Political accountability debated; legal culpability unproven
6. Existing Minnesota Fraud Investigations (Context)
| Claim | Confirmed Reality |
|---|---|
| Minnesota has a history of welfare fraud. | ✅ Confirmed. Minnesota has faced multiple high-profile fraud cases involving food aid, housing, and social services over recent years. |
| Daycare fraud is part of a broader issue. | ✅ Confirmed. Federal and state agencies acknowledge systemic oversight failures, though each case must be proven individually. |
Status: ✅ Well documented, but separate from video-specific claims
Bottom Line for Readers
- ✔️ The video raises legitimate red flags about oversight and transparency.
- ❌ No authority has yet confirmed that the daycares shown committed fraud.
- ⚠️ Dollar figures, intent, and criminality remain unproven without audits.
- 🧾 Public records alone do not equal guilt — fraud requires evidence of falsification.
What Would Confirm Fraud (If It Exists)
For readers asking “What would actually prove this?”, investigators would need:
- Attendance records vs. CCAP billing comparisons
- Proof of fake or duplicate children
- False enrollment documents
- Bank-flow analysis showing misuse
- Licensing violations tied directly to billing fraud
None of these have yet been released publicly for the centers shown in the video.
Reactions From Community & Critics
While conservative political voices have amplified the claims, local voices and commentators express mixed reactions online:
- Some argue the video points to serious oversight failures in Minnesota’s childcare funding.
- Others caution against drawing sweeping conclusions from a single social media post, pointing out that inspection exceptions, licensing nuances, or misinterpretation could explain empty facades.
- Some responses on platforms like Reddit reveal concern about racialized framing of the issue, with commentators warning against attributing alleged wrongdoing to entire communities without clear evidence.
These reactions reflect a broader debate about public services, oversight mechanisms, and responsible reporting on complex policy issues.
What Happens Next: Investigations & Public Records
At this stage:
- Minnesota state agencies and federal teams are expected to review childcare subsidy records if formal complaints are lodged, but no official day-care-specific audit report has yet been released.
- GOP lawmakers may pursue legislative hearings or subpoenas to clarify funding flows.
- Courts and law enforcement typically require documentary evidence and audits before pursuing fraud charges — meaning social media allegations alone won’t drive prosecutions without deeper investigations.
Given the politically charged nature of this story, it will be important for reputable news outlets to confirm or refute key assertions through public records requests, CCAP payment logs, and interviews with state officials.
Conclusion: Viral Claims Demand Verification, Not Verdicts
The Nick Shirley video has undeniably thrust Minnesota’s childcare funding mechanisms into the national spotlight, generating political pressure and public outrage. It highlights potential gaps in oversight, and the emotional response is understandable when taxpayers see large sums tied to allegedly inactive facilities.
But responsible reporting — especially in a highly charged environment — must distinguish viral claims from verified fact. The allegations deserve thorough review by auditors and watchdogs; they deserve answers from elected leaders and administrators. What they do not deserve is premature judgment without corroborated evidence. Readers should await independent investigations and official findings before drawing conclusions about fraud, culpability, or systemic failures.
Legal Risk & Editorial Disclaimer
This article reports on publicly available records, on-the-ground video footage, and statements circulating on social media, including claims made in a viral video by independent journalist Nick Shirley. At the time of publication, no court, regulatory authority, or law-enforcement agency has issued findings confirming criminal wrongdoing by the daycare centers shown in the footage.
All dollar figures referenced reflect program payments disclosed in public databases or figures cited in online commentary, not adjudicated fraud losses. Receipt of public funds, by itself, does not constitute fraud. Determinations of misuse require formal audits, investigative findings, or criminal charges.
The presence of closed facilities, empty buildings, or limited staffing does not alone establish illegality. Daycare licensing and subsidy programs allow for operational flexibility, non-standard hours, and administrative use of facilities that may not be apparent during unscheduled visits.
References to ownership, ethnicity, or community affiliation are included solely for context where such information appears in public records or reporting and must not be construed as evidence of coordinated wrongdoing or collective responsibility. Any implication of criminal conduct applies only to specific allegations under review, not to broader communities or lawful operators.
This reporting reflects the situation as of the publication date. Investigations, audits, or official responses may clarify, contradict, or substantiate claims in the future. Readers are encouraged to treat ongoing allegations with appropriate caution until formal conclusions are reached.
