Tim Walz Faces Backlash Over Viral “Billion Dollar” Minnesota Daycare Fraud Investigation

The Viral Investigation: “Quality Learing Center”

In a 42-minute video released on December 26, 2025, Nick Shirley visited several Minnesota daycare centers that reportedly received millions in state funding via the Child Care Assistance Program (CCAP).

• Key Allegation: Shirley highlighted the Quality Learning Center in Minneapolis (which misspelled “Learning” as “Learing” on its sign). The facility reportedly received $1.9 million in 2025 and roughly $4 million in total state funds, yet Shirley’s footage showed the building locked and apparently empty during business hours.
• Lack of Activity: A local resident told Shirley, “I haven’t seen any kids. I’ve been here since 2017,” despite the center being licensed for 99 children.
• The “ICE” Confrontation: When Shirley approached the building, a woman yelled to those inside, “Don’t open up. It’s ICE,” further fueling theories about the misuse of programs by illegal or non-operational entities.

Elon Musk and Kash Patel Join the Scrutiny

The investigation gained massive traction after endorsements from two of the most influential critics of the previous administration:

• Elon Musk: The X CEO retweeted Shirley’s work, calling for the prosecution of Governor Walz. Musk alleged that the “radical left” uses these programs to create “fraudulent payments to illegals” to build a “single-party state.”
• Kash Patel (FBI Director): Patel confirmed the FBI is actively surging resources into Minnesota to dismantle these schemes. He referred to the already-prosecuted $250 million “Feeding Our Future” food aid fraud as just the “tip of a very large iceberg.” Patel noted that the investigation into thousands of other businesses remains ongoing.

Governor Walz and the Administration’s Defense

Governor Walz’s team has dismissed the viral reports as part of a political narrative, asserting that they have been proactive in fighting fraud.

• Strengthened Oversight: A spokesperson for Walz stated the Governor has worked for years to “crack down on fraud,” citing the hiring of a former FBI agent to lead a new statewide integrity unit.
• Ongoing Audits: The administration pointed out that it has already shut down several high-risk programs, including the Housing Stabilization Services program, and is conducting audits on 14 other state agencies.