Federal probes intensify in Minnesota child care fraud case amid new charges, viral exposé

Federal authorities are ramping up investigations into alleged fraud tied to Minnesota’s child care and nutrition programs, bringing new charges and convictions in what prosecutors have described as one of the largest pandemic-era fraud schemes in U.S. history. 

The Department of Justice (DOJ) said in a Dec. 29 X post that prosecutors have now charged 98 individuals in connection with the case, with more than 60 defendants having pleaded guilty or been convicted. In a separate Dec. 29 post, Attorney General Pam Bondi said that 85 of the 98 individuals charged are of Somali descent. 

What officials allege

The investigation centers on the sprawling Feeding Our Future scheme, in which prosecutors allege more than $250 million in taxpayer funds were siphoned off through fake meal sites, shell companies, and falsified invoices during the COVID-19 pandemic, according to FBI Director Kash Patel. 

The Department of Homeland Security (DHS) announced Dec. 30 that it has begun conducting door-to-door checks at suspected fraud locations in Minnesota, seeking to verify whether licensed child care centers receiving public funds were actually operating.

“Our investigative agents are conducting a massive operation to identify, arrest, and remove criminals who are defrauding the American people,” the agency wrote on X. “We will root out this rampant fraud plaguing Minnesota.” 

Federal action accelerated after the release of a viral video appearing to show non-operational daycare centers that nonetheless received millions of dollars in government funding. In her Dec. 29 post, Bondi credited investigative work by YouTuber Nick Shirley with drawing national attention to the scope of the alleged abuse.

“We have more prosecutions coming…BUCKLE UP, LAWMAKERS!” Bondi wrote. 

Shirley’s 42-minute video, posted Dec. 26, documents visits to licensed child care centers across Minnesota that appeared empty or abandoned despite records indicating they received substantial public funds. The video has garnered more than 126 million views.

Among the sites highlighted in the video: 

• Quality Learning Center, licensed for 99 children, received $1.9 million in 2025 and about $4 million total. The building appeared abandoned during Shirley’s visit, and signage misspelled “Learning” as “Learing.” ABC-affiliate KARE later reported that Ibrahim Ali, a manager at the center who said his parents own the facility, told the outlet the business was scheduled to close at the time of Shirley’s visit.

• Future Leaders Early Learning Center, licensed for 90 children, received roughly $6.67 million over two years but appeared empty during Shirley’s visit.

• Mako and Mini Child Care centers, licensed for a combined 120 children, received approximately $4.6 million over three years.

How far the investigation could reach

Investigative journalist and former CBS News correspondent Catherine Herridge reported on X that Patel said the FBI has opened at least 16 investigations since late May involving roughly 32 health care and home care providers in Minnesota. 

Herridge wrote that the probes — initially opened under the Biden administration — were “buried under Biden” because they “potentially implicated Biden administration allies,” a claim Patel later amplified by reposting her report.

Separately, Axios reported that Assistant U.S. Attorney Joe Thompson said Dec. 18 that fraud across 14 Minnesota Medicaid programs could ultimately exceed $9 billion. Thompson’s estimate extends beyond the Feeding Our Future case, highlighting what federal officials describe as a far broader pattern of systemic abuse within state-administered programs.

What comes next

Political fallout in Minnesota has intensified as the federal investigation expands. Republican Rep. Tom Emmer of Minnesota, the House majority whip, posted a detailed thread Dec. 29 on X criticizing Democratic Gov. Tim Walz for failing to address the fraud sooner.

Emmer outlined repeated requests dating back to 2022 for records tied to Feeding Our Future, which he said involved stolen funds spent on luxury vehicles and vacations. He also pointed to other state programs, including Housing Stabilization Services, that he said ballooned from roughly $2 million to more than $100 million annually amid widespread abuse.

Later Dec. 29, Emmer called for the denaturalization and deportation of all Somali immigrants convicted of fraud.

“I have three words regarding Somalis who have committed fraud against American taxpayers: Send them home. If they’re here illegally, deport them immediately; if they’re naturalized citizens, revoke their citizenship and deport them quickly thereafter. If we need to change the law to do that, I will,” he wrote. “Our nation will not tolerate those who take advantage of our charity and refuse to assimilate into our culture.”