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Minnesota Gov. Tim Walz’s office is pushing back against allegations of fraud after a viral video shows visits to several daycares in the state, including one that allegedly received millions of dollars in state funding despite appearing largely inactive.
Responding to questions about the allegations and the video posted by independent journalist Nick Shirley, a spokesperson for the governor told Fox News that Walz had spent years “cracking down fraud” and had taken steps to strengthen oversight of state programs, including open investigations in several establishments.
“THE the governor has “He has worked for years to combat fraud and ask the state Legislature for more power to take aggressive action,” the spokesperson said. “He has increased oversight, including launching investigations into these specific facilities, one of which was already closed.”
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Minnesota Governor Tim Walz listens during a hearing with the House Oversight and Accountability Committee at the U.S. Capitol, June 12, 2025, in Washington, DC. (Anna Moneymaker/Getty Images)
The spokesperson added that Walz “hired an outside firm to audit payments to high-risk programs, completely shut down the Housing Stabilization Services program, announced the appointment of a new statewide director of program integrity, and supported criminal prosecution.”
The response follows the release of a 42-minute video by Shirley, posted Friday on X and YouTube, documenting the visits of several blue state daycaresincluding a location on Nicollet Avenue in Minneapolis.
In the video, Shirley and another man are seen in what appears to be a largely inactive daycare. The building also has a reading misspelled sign “Quality Learning Center,” even though the center is supposed to serve 99 children and received about $4 million in state funds.
During a Sunday appearance on Fox News’ “The Big Weekend Show,” Shirley said the alleged fraud in Minnesota was “so obvious” that a “kindergartner could figure out there’s fraud going on.”
During an appearance Sunday on Fox News’ “The Big Weekend Show,” independent journalist Nick Shirley said the alleged fraud in Minnesota was “so obvious” that a “kindergartner could figure out there’s fraud.” (Fox News)
Shirley also suggested that other journalists might be reluctant to pursue similar reporting for fear of being labeled “Islamophobic” or “racist”.
“Fraud is fraud, and we work too hard just to pay taxes and allow fraud to happen,” he said.
The video sparked widespread backlash, drawing criticism of Walz throughout the weekend from several high-profile figures, including Vice President JD Vance, Rep. Mike Lawler, R-N.Y., Donald Trump Jr. and Elon Musk.
The White House on Sunday republished an X-rated message from Education Secretary Linda McMahon, who called the alleged fraud “a breathtaking failure that happened on Walz’s watch.”
Meanwhile, FBI Director Kash Patel said the agency sent additional investigative personnel and resources to Minnesota as part of an ongoing effort to “dismantle large-scale fraudulent schemes exploiting federal programs.”
FBI Director Kash Patel during a press conference on October 23, 2025 in New York. (Michael M. Santiago/Getty)
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The video went viral this week amid the burgeoning scandal surrounding the Walz administration, which included the loss of at least $1 billion due to alleged social services fraud largely linked to the Twin Cities’ Somali community.
Connor Hansen and Charles Creitz of Fox News contributed to this report.
