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Fortune
Fortune
Business
Nick Lichtenberg

YouTuber’s viral ‘Somali day care’ video spurs sweeping federal fraud probe in Minnesota as Walz defends oversight of $18 billion

Tim Walz (Credit: Anna Moneymaker—Getty Images)

A viral video alleging fraud at several Minnesota day-care centers has triggered intensified federal and state scrutiny of how public money is spent. At the same time, officials stress that the claims remain unproven and are under active investigation.

The clash between online allegations and official audits has put Gov. Tim Walz’s administration and the state’s oversight systems under a national spotlight. It comes against the backdrop of a federal prosecutor’s allegation earlier in December that half or more of approximately $18 billion in federal funds allocated to Minnesota since 2018 may have been stolen. Authorities stress that the day-care sites in conservative YouTuber Nick Shirley’s footage are now part of an expanded investigative map. Still, they have not publicly alleged a specific dollar figure of confirmed fraud tied to those particular centers.

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