Listen to the article
In the wake of a viral video alleging widespread child care fraud among Somali-run facilities in Minnesota, the Trump administration has taken dramatic action, temporarily freezing federal child care payments to five Democratic-led states. Despite these sweeping measures, investigators have found little evidence supporting the video’s explosive claims.
The controversy began when right-wing YouTuber Nick Shirley posted footage on December 26 purporting to show Minneapolis day cares operated by Somali Americans receiving public funding without actually serving children. The video quickly gained traction in conservative circles, with Vice President JD Vance praising Shirley’s work as superior journalism compared to recent Pulitzer Prize winners.
The fallout has been swift and far-reaching. The Trump administration temporarily froze child care payments to Minnesota, California, Colorado, New York, and Illinois while imposing stricter reporting requirements nationwide for states receiving child care funds. Minnesota Governor Tim Walz, a Democrat, suspended his reelection campaign amid the controversy.
However, state investigators who conducted unannounced inspections of the centers featured in Shirley’s video found normal operations at nearly all facilities. Only one was closed during the visit because it had not yet opened for the day. While state records show some facilities had licensing violations related to cleanliness, supervision, and record-keeping, none were cited for fraud.
“These are not new issues, but they are being repackaged and promoted in ways to make it seem like there is an epidemic,” explained Elliot Haspel, a national child care expert, during a recent press briefing.
Minnesota has grappled with child care fraud in the past. A 2019 state investigation found several million dollars in improper billing within the Child Care Assistance Program (CCAP), which provides subsidies for low-income children. Since then, Minnesota has strengthened oversight, creating a dedicated department for child care licensing and auditing, and passing legislation to criminalize kickbacks for enrollment referrals.
A 2025 report by the federal Department of Health and Human Services Office of the Inspector General found that Minnesota’s improper payment rate of 11 percent exceeds the permissible federal threshold of 10 percent. However, experts note that improper payments don’t necessarily indicate fraud.
“An improper payment is a child was present for 40 hours and somehow the state paid only for 30 hours. Fraud is when you’re charging for kids that were never enrolled,” explained Danielle Ewen, a national child care expert.
The targeting of Somali-run day cares has raised concerns about xenophobia and discrimination. Minnesota has the largest Somali population in the United States, and child care has historically employed many immigrants. Since the video’s release, there have been reports of harassment at Somali-run businesses and day cares, including threatening phone calls and at least one break-in.
David Hoch, the main source in Shirley’s video and a former right-wing candidate for Minnesota attorney general, has previously posted inflammatory comments about the Somali community. In a now-deleted social media account, Hoch wrote that “EVERY Somali in MN is engaged in fraud. ALL of them,” according to reporting by The Intercept.
The five states affected by the funding freeze sued the Trump administration, arguing that withholding funds from vulnerable families would cause “immediate and devastating impacts.” On Friday, a federal judge ordered the administration to release the funds while the case proceeds.
For child care providers and families, uncertainty remains. Freezing child care funding could force facilities to cut staff, close classrooms, or shut down entirely, as many operate on thin margins and lack financial reserves.
“These are the families who absolutely need it,” said Kylie Cooper, a Twin Cities child care center director. “They likely don’t have PTO or benefits in place with their employers if they have to take a day off work for child care. There’s not a support system.”
About 95 percent of families receiving assistance at Cooper’s center are headed by single mothers, underscoring the potential consequences of disrupting this critical service for vulnerable families.
Fact Checker
Verify the accuracy of this article using The Disinformation Commission analysis and real-time sources.
7 Comments
This is a complex issue that deserves careful examination. I appreciate the nuanced reporting in this article, which avoids sensationalism and focuses on understanding the real situation. A thorough, impartial investigation is clearly needed.
Interesting allegations, but the article suggests the claims of widespread fraud may be overblown. I’m curious to see what the full investigation uncovers and whether the response has been proportional.
This is a complex situation that requires a nuanced approach. I appreciate the efforts to understand the real situation, rather than relying on sensationalized claims. Transparency and fair investigation will be key.
Child care fraud is a serious issue that deserves attention, but the article raises important questions about the credibility of the initial claims and the appropriateness of the government’s actions. I look forward to seeing the full facts come to light.
The Trump administration’s response of freezing payments to multiple states seems like an extreme measure, given the lack of concrete evidence so far. I wonder if this is more about politics than addressing actual fraud.
This is a sensitive and politically charged issue. I appreciate the fact-based approach in trying to understand the real situation, rather than jumping to conclusions based on a single video.
It’s concerning to hear about potential misuse of public funds, but we should be careful not to make broad generalizations about an entire community. I hope the investigation is thorough and fair.