After YouTuber Nick Shirley uncovered massive fraud at Somali-run daycare centers in Minnesota, the U.S. Department of Health and Human Services (HHS) has frozen all federal payments to child care centers in the state and will implement new nationwide requirements for childcare providers seeking government funds.
In a statement shared on social media, HHS officials announced they have activated their “defend the spend” system, requiring justification and receipts before any payments are made. Deputy Secretary Jim O’Neill stated that HHS has identified individuals involved in fraud and demanded Governor Tim Walz conduct a comprehensive audit of the centers, including attendance records, licenses, complaints, investigations, and inspections.
The administration also launched a dedicated fraud-reporting hotline and email address at childcare.gov for parents, providers, and the public to report suspected fraud.
Nick Shirley praised the actions: “Great work, accountability is coming…”
However, Governor Tim Walz’s office has denied widespread fraud allegations. A spokesperson said the governor “has been combatting fraud for years” and that the move is a “transparent attempt to politicize the issue to hurt Minnesotans and defund government programs that help people.”
The HHS officials also noted that Minnesota had allegedly funneled millions of taxpayer dollars to fraudulent daycares over the past decade.