Timeline of alleged Minnesota daycare fraud: From Nick Shirley's viral video to new federal raids
Federal agents carried out raids at about 20 childcare centers in Minneapolis early Tuesday morning as part of an ongoing investigation into suspected fraud, according to multiple officials and a statement from the Justice Department.
No arrests were made during the raids, which officials described as a renewed effort to address alleged COVID-era fraud schemes in Minnesota.
The Justice Department said the FBI, along with federal, state and local law enforcement, executed court-authorized search warrants as part of the investigation. The activity comes months after a previous federal crackdown in the region and follows national scrutiny of Minnesota's childcare programs.
The following timeline outlines the key developments in the case:
Late December 2025: YouTuber Nick Shirley posts a video visiting federally supported childcare centers around Minneapolis, claiming nearly a dozen centers were not providing services and suggesting owners were taking taxpayer funds. The video draws tens of millions of views and is amplified by public figures, including Elon Musk, Vice President J.D. Vance, and then-Attorney General Pam Bondi.
Following the video, CBS News conducts its own analysis. Reporters visit several of the daycare centers mentioned by Shirley. State records show all but two have active licenses, and all active locations were visited by state regulators within the last six months. One center had an unannounced inspection on Dec. 4. The review finds dozens of citations related to safety, cleanliness, equipment, and staff training, but no recorded evidence of fraud. One daycare shares security footage showing children being dropped off the same day Shirley visited.
January 2026: Minnesota's Office of Inspector General conducts on-site compliance checks at nine of the centers on Jan. 2. Officials report that eight had children present and one had not yet opened at the time of inspection. The state says the centers were "operating as expected."
In response to the viral video, the U.S. Department of Health and Human Services freezes federal childcare funding for Minnesota, which receives about $185 million in federal support for childcare.
President Trump publicly blames the Somali community, making derogatory remarks and ending temporary deportation protections for Somali immigrants in Minnesota. Minnesota lawmakers condemn the comments and accuse the president of targeting the community.
Minnesota Gov. Tim Walz faces criticism for his handling of fraud in the state but defends his administration, stating, "we've spent years cracking down on fraudsters" and accusing Trump of politicizing the issue. On Jan. 5, Walz announces he will not seek a third term and introduces a new statewide fraud prevention program, appointing Tim O'Malley as director of program integrity.
Republican Rep. James Comer of Kentucky, chair of the House Oversight Committee, opens an investigation into fraud in Minnesota's public assistance programs and announces plans for hearings with testimony from Walz and other officials.
Amid the funding freeze and increased scrutiny, more than 2,000 federal agents from Customs and Border Protection and Immigration and Customs Enforcement arrive in the Twin Cities. Clashes with protesters occur, and federal agents shoot and kill two Americans, Renee Good and Alex Pretti, in two separate incidents. About 3,700 immigrants are arrested and detained, most of whom are not Somali or connected to any alleged fraud.
February 2026: Three Minnesota childcare centers featured in Shirley's viral video alleging fraud at Somali-run daycares sue the state of Minnesota, claiming they were unfairly punished. Attorney Jason Steck, representing the daycares, claims the language against Hopkins Child Care Center and Cloud Academy is overtly vague.
Steck argues that St. Cloud Childcare, which the state said is facing "credible" allegations of fraud according to the lawsuit, is losing funding over a minor misunderstanding related to child attendance record-keeping. The lawsuit states that DCYF threw these three daycares "under the bus... to appease the federal government."
March 2026: U.S. Attorney Daniel N. Rosen states, "I am proud of our team of prosecutors, federal agents, and law enforcement partners who continue to expose the rampant fraud in Minnesota." Since 2021, 92 people have been charged in related fraud schemes, with 67 convicted, including five guilty pleas in the Feeding Our Future scandal involving a federal nutrition program.
April 2026: Federal agents return to Minneapolis on April 28, executing search warrants at about 20 childcare centers for suspected fraud. A CBS News Minnesota crew observes agents at the Mini Childcare Center in south Minneapolis, one of the locations mentioned in Shirley's video. Agents are seen taking photos and carrying a large portable file case inside. No arrests are made during the raids.
