Youtuber Exposes Alleged Minnesota Childcare Centres Fraud Labour Secretary Says 'Strike Team' To Probe Matter

(MENAFN- Live Mint) YouTuber Nick Shirley ignited a national backlash after releasing a viral investigation alleging that up to $8 billion in taxpayer funds may have been lost to widespread welfare fraud in Minnesota.

He made claims accusing state agencies of overlooking clear red flags while vast sums were allegedly funnelled through childcare, transportation, and healthcare programs that largely existed only on paper.

In the video, Nick questions officers about where the money is actually going. At one point, Shirley asserts,“This could be the largest fraud scandal in U.S. history,” claiming that state and federal funds were diverted to businesses with little or no sign of real operations.

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Much of the video centres on childcare facilities that were licensed to look after dozens of children but appeared deserted during multiple visits in the middle of the day.

Shirley, alongwith a local investigator identified only as David, who says his doubts built up after years of driving past the same sites.“I would pass these childcare centres during the day and never see any kids,” he explains.“That's when I started wondering-where are these children?”

In a post on X, Nick said,“Here is the full 42 minutes of my crew and I exposing Minnesota fraud, this might be my most important work yet. We uncovered over $110,000,000 in ONE day. Like it and share it around like wildfire! Its time to hold these corrupt politicians and fraudsters accountable. We ALL work way too hard and pay too much in taxes for this to be happening; the fraud must be stopped.”

Watch the video here:

Meanwhile, US Department of Labor reacted to the allegations and said,“we got bigger fish to fry.”

Tesla CEO Elon Musk reacted to the video and said,“prosecute Governor Tim Walz.”

In another post, Musk said, "The radical left has been using fraudulent government programs for a long time to import and retain vast numbers of illegal (and legal, in some cases) immigrants to win elections and turn America into a single-party state, destroying any real democracy. The more you look at it, the more you will be horrified at what your tax money is doing and the fact that, if this is not reversed, your vote will mean nothing.

The most obvious case example is the Somali voting bloc in Minnesota, a state that historically had zero Somalis, electing Ilhan Omar to the US Congress. The same is happening in Europe, UK, Canada, Australia and New Zealand, Musk added.

According to Shirley, some of these centres received hundreds of thousands of pounds each year-and in some cases millions-despite showing no clear evidence that they were operating.

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While standing outside a building in Minneapolis, he claims,“Between these two childcare centres alone, they're bringing in around £2.4 million ($3 million) a year, and there are no children.” The video shows locked entrances, dark windows, and signage advertising extended hours, yet no visible activity inside.

Trump official pulls $5.5 million in SBA funds from Minnesota

The Trump administration is suspending $5.5 million a year in funding to Minnesota following allegations that individuals and businesses in the state misused government loan programs, according to a statement posted on social media by the U.S. Small Business Administration, Bloomberg reported.

The decision is part of a broader pattern of the federal government withholding funds from Democrat-led states and cities. It also comes as Republicans intensify investigations into alleged fraud in Minnesota, including claims involving organisations that received emergency loans during the COVID-19 pandemic.

(With inputs from agencies)

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