It’s Not Just Minnesota. The Vast Majority Of Daycare Is A Scam

Taxpayers have spent hundreds of billions more on completely ineffective daycare than even Somalis have been able to pilfer.

Tim Walz scurries to defend record after video alleges new Somali-linked fraud



On Friday, independent video journalist Nick Shirley published a video on X that he claims shows widespread fraud involving purported day-care centers in Minnesota. Shirley wrote that he “uncovered over $110,000,000 [in fraud] in ONE day.” The video is the latest public allegation of fraud tied to Minnesota’s Somali community and comes as failed Democrat vice presidential nominee and Minnesota Gov. Tim Walz faces renewed scrutiny over the issue.

In the video, Shirley and his team are seen traveling Minnesota and visiting addresses where federally funded day-care centers are supposed to exist. When he arrived, he often found buildings with no children and seemingly no active day-care facilities.

‘There are not enough words to describe the breathtaking failure that has happened under the watch of @GovTimWalz.’

In a clip from Shirley’s video that Education Secretary Linda McMahon shared over the weekend, Shirley is shown standing outside a day-care facility identified as “Quality Learing [sic] Center.” The sign appears to misspell the word “learning.” Shirley says that when he attempted to enter the building during regular weekday hours, it was closed and its windows were blacked out. He also claims the center received $1.9 million in government funding.

In sharing the clip on X, McMahon wrote, “There are not enough words to describe the breathtaking failure that has happened under the watch of @GovTimWalz.”

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Blaze Media Illustration and Getty Images

Walz’s office pushed back over the weekend against Shirley’s allegations. Fox News Digital reported Sunday that a spokesperson for Walz said the governor has spent years working to “crack down on fraud” and has taken steps to strengthen oversight of state programs, including launching investigations into several facilities.

The spokesperson also pointed to the state legislature’s role in overseeing the programs and said that at least one business highlighted in Shirley’s reporting had already been shut down by Walz’s administration.

Despite the response, criticism continued. In addition to Education Secretary Linda McMahon, Vice President JD Vance praised Shirley’s work, writing on X, “This dude has done far more useful journalism than any of the winners of the 2024 [Pulitzer] prizes.”

FBI Director Kash Patel said in a post on X that the bureau is aware of the allegations circulating online. Patel wrote that the FBI had already deployed additional personnel and "investigative resources" to Minnesota to address "large-scale fraud" involving federal programs, even before the issue gained widespread attention on social media.

“Fraud that steals from taxpayers and robs vulnerable children will remain a top FBI priority in Minnesota and nationwide,” Patel wrote.

Patel also cited previous arrests and convictions as evidence of the bureau’s ongoing efforts to combat fraud in the state.

BlazeTV host Christopher Rufo disputed Patel’s characterization, calling it “misleading.” In a post on X, Rufo said Patel was taking "credit for investigations and convictions that occurred under the Biden Administration," adding that the unresolved question concerns alleged fraud that has not yet resulted in charges. “When do we see arrests, mugshots, and new prosecutions?” Rufo wrote.

Rufo previously reported on alleged fraud involving Minnesota welfare and health programs earlier this year. As independent journalists such as Shirley continue to highlight the allegations, scrutiny of Minnesota officials, including Walz and U.S. Rep. Ilhan Omar, has intensified.

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DOGE didn’t die — it moved to the states



The media and conservative pundits may have buried the Department of Government Efficiency, but they have yet to carve a date of death on its tombstone. While DOGE in Washington may have appeared to insiders as a vanity project, voters saw it as a mandate — one that Republicans at the federal level have largely set aside in favor of politics as usual.

But activists have not forgotten. In red states across the country, they are still demanding accountability. And in Idaho, that pressure is finally producing results.

If Idaho can succeed and follow Florida’s lead, there is no serious reason other red states cannot do the same — unless they are prepared to admit they never intended to keep their promises.

For what appears to be the first time, state legislators serving on Idaho’s DOGE Task Force concluded their 2025 work with a meeting that departed from months of cautious, procedural discussion. Members asked harder questions, voiced long-simmering frustrations, and issued a recommendation that could reshape the state’s fiscal future: urging the full legislature to consider repealing Medicaid expansion, a costly policy that has drained taxpayers of millions.

Red states can’t stall forever

Idaho may not be Florida, where Republican Gov. Ron DeSantis’ DOGE-style reforms have produced consistent wins for fiscal sanity and limited government. But it is doing more than other red states, such as North Dakota, where a DOGE committee stacked with Democrats predictably ignored the voters’ mandate.

The Idaho meeting exposed growing dissatisfaction with the task force’s approach. Over the summer and fall, the committee — charged with identifying inefficiencies — repeatedly deferred to state agencies for suggestions on cuts. Unsurprisingly those agencies offered little beyond cosmetic changes.

Idaho state Rep. Heather Scott (R-LD2, Blanchard) gave voice to that frustration. “What is the goal of this committee?” she asked, pressing colleagues to offer recommendations that actually matter. “Twenty thousand here, 50,000 there, or removing old code is not meaningful efficiency,” Scott said. Repealing Medicaid expansion, she argued, would be one of the “best decisions” the state could make.

Nibbling at the edges

Scott’s experience on the Idaho task force stands in stark contrast to the early federal DOGE efforts, which moved aggressively to slash U.S. Agency for International Development’s workforce, freeze fraudulent payments, and cancel billions in corrupt contracts. By comparison, Idaho’s task force had mostly nibbled at the edges. This recommendation marked its first serious step toward substantive reform.

Another revealing moment came from co-chairman state Sen. Todd Lakey (R-Nampa), who read a letter from a small-business owner offering health insurance to employees. Workers routinely request schedules capped at 20 to 28 hours per week to preserve Medicaid expansion benefits — even though full-time work would require only a modest contribution toward employer-provided coverage.

The result is a perverse incentive structure: businesses struggle to find full-time workers while taxpayers subsidize underemployment. The government fuels workforce shortages through welfare, then spends more taxpayer dollars trying to fix the shortages it created. This welfare-workforce vortex is the opposite of efficiency, and it is spreading nationwide.

The meeting’s most explosive moment came from state Rep. Josh Tanner (R-Eagle), who described Idaho’s Medicaid reimbursement structure as resembling “money laundering.”

Citing analysis from the Paragon Health Institute, Tanner explained how provider assessment fees allow states to inflate Medicaid spending to draw down larger federal matching funds, cycling the money back through enhanced payments. Paragon has described these arrangements as “legalized money laundering” — schemes that shift costs to federal taxpayers while enriching connected providers or funding unrelated priorities.

Nationally supplemental payments now exceed $110 billion annually, siphoning hundreds of billions from taxpayers over a decade.

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Photo by Kevin Dietsch/Getty Images

DOGE’s second life

My sources tell me that hospital lobbyists went into panic mode after the meeting, urgently contacting Capitol officials to contain the fallout from Tanner’s remarks.

For the first time, the task force aired real frustrations, documented real harms, and named real abuses. That alone offers reason for cautious optimism.

Idaho now has committed conservatives in positions of influence. With the task force’s recommendation to revisit Medicaid expansion heading to the legislature, the state has an opportunity to govern as it campaigns — preserving liberty, restoring accountability, and expanding opportunity.

If Idaho can succeed and follow Florida’s lead, there is no serious reason other red states cannot do the same — unless they are prepared to admit they never intended to keep their promises in the first place.

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