A viral exposé by conservative YouTuber Nick Shirley alleging that nearly a dozen Minnesota daycares are pocketing public funds without providing services has triggered a “massive investigation” by the Department of Homeland Security. However, a review of state records suggests the reality on the ground may be more complex than the “ghost town” narrative suggests.
Shirley’s video, which garnered millions of views last week, accused the facilities of being fronts for fraud, claiming they were empty during business hours while raking in taxpayer money. The footage prompted immediate action from DHS Secretary Kristi Noem, who announced a sweeping federal probe into “childcare and other rampant fraud” within the state’s social services.
Yet, an independent analysis conducted by CBS News paints a different picture of the facilities targeted by the influencer.
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According to the analysis, all but two of the centers named in the video hold active licenses. Furthermore, state records indicate that regulators are not absent; every active location had been visited by state inspectors within the last six months. While the review uncovered dozens of citations regarding cleanliness, safety equipment, and staff training, state files contained no recorded evidence of fraud.
The tension between the online allegations and the operational reality played out in real-time on Monday at the Quality “Learing” Center in Minneapolis.
The facility, mocked for the typo on its signage and featured prominently in Shirley’s video, suddenly bustled with activity as the work week began. Neighbors, who previously told reporters the site was usually empty, watched as roughly 20 children streamed into the building—a sharp contrast to the YouTuber’s footage showing a locked door.
“We’ve never seen kids go in there until today,” one neighbor told the New York Post, noting the typically empty parking lot was full. “I was under the impression that the place is permanently closed.”
Ibrahim Ali, the son of the center’s owners, pushed back hard against the fraud claims. He argued that the viral video was filmed outside of their operating hours, which run from 2 p.m. to 10 p.m.
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“Do you go to a coffee shop at 11 p.m. and say, ‘Hey, they’re not working’?” Ali asked. He dismissed the sign’s misspelling as a graphic design error that is slated to be fixed.
Despite the center’s defense and the state records, the federal pressure is mounting. On Monday morning, ICE agents visited the nearby ABC Learning Center to demand attendance records. Director Ahmed Hasan complied but described an atmosphere of fear gripping the local Somali immigrant community, viewing the investigation as a “targeted situation.”
“We were scared to open the door,” Hasan said, noting that when Shirley’s camera crew first arrived, staff mistook them for federal agents.
While the CBS review suggests the daycares are operational and monitored by the state, the aggressive federal response indicates that Washington is taking the viral allegations seriously, regardless of what current state paperwork might say.
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