Minnesota Governor Tim Walz’s office confirmed on Sunday that new investigations are underway following the release of a viral documentary alleging rampant fraud within the state’s taxpayer-funded assistance programs.
The documentary, released by independent journalist Nick Shirley, purports to show evidence of widespread misuse of public funds, specifically highlighting “ghost” childcare and healthcare facilities that appear to be non-operational despite collecting millions of dollars.
The video documents visits to more than 20 licensed providers in the Minneapolis area. In one widely shared segment, Shirley stands outside a building identified as the “Quality Learing Center”—noting the misspelling of “Learning” on the permanent signage.
“This daycare alone in 2025 has received $1.9 million from the government,” Shirley claims in the footage. He points out that despite it being midday on a weekday, the facility appears abandoned with blacked-out windows. “No one’s working midday. Children should be in here, and this place is licensed for 99 children.”
Another collaborator in the documentary describes similar scenes across the city, claiming he frequently observed centers licensed for dozens of children that were empty aside from men standing outside.
In a statement provided to Fox News, Governor Walz’s office pushed back against the implication of inaction, stating the administration has “strengthened oversight” and is already scrutinizing the locations identified in the footage.
“The governor has worked for years to crack down on fraud and ask the state legislature for more authority to take aggressive action,” the statement read. Walz’s office noted that they have engaged an outside firm to audit payments to high-risk programs and have already closed the state’s Housing Stabilization Services program entirely. They confirmed that one of the facilities featured in the video had already been shut down prior to the report.
READ: ‘It’s All Bullsh*t’: Minnesota Gov. Walz Lashes Out At Gun Owners While $1B Fraud Scandal Looms
The viral claims surface amid a broader scrutiny of Minnesota’s handling of federal dollars. Earlier this month, federal prosecutors estimated that nearly $9 billion in federal funds supporting state programs may have been stolen by fraudsters over the past seven years.
The allegations have drawn the attention of the highest levels of federal law enforcement. FBI Director Kash Patel addressed the documentary on Sunday via X, formerly Twitter, stating the Bureau is “aware of recent social media reports” and has “surged personnel and investigative resources” to the state.
Patel referenced the FBI’s previous success in dismantling the $250 million “Feeding Our Future” scheme, which saw pandemic-era food aid meant for children diverted through shell companies.
“The FBI believes this is just the tip of a very large iceberg,” Patel warned. “We will continue to follow the money and protect children, and this investigation very much remains ongoing.”
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