9 Minnesota child care centers discussed in viral video "operating as expected," state officials say

Nine of the Minnesota child care centers that were discussed in a viral video, prompting allegations of fraud, were "operating as expected" when state investigators conducted on-site checks this week, officials said on Friday.

The video posted late last month by conservative YouTuber Nick Shirley alleged nearly a dozen day care facilities in the state that are receiving public funds are not actually providing services. 

The Minnesota Department of Children, Youth and Families said in a news release Friday that officials with the state's Office of Inspector General carried out compliance checks this week as part of an "ongoing commitment to oversight." 

Children were present during eight of the nine inspections, the agency said. One of the facilities did not have children present because it was not yet open for the day when inspectors were at the site.

"Investigators confirmed the centers were operating as expected, gathered evidence and initiated further review," the state agency said in its release.

The agency also released the amount of funding that nine child care centers received from Minnesota's Child Care Assistance Program in fiscal year 2025, which ended in September:

• Super Kids Daycare Center — $471,787
• Future Leaders Early Learning Center — $3.68 million
• Quality Learning Centers —$1.9 million
• Tayo Daycare — $1.09 million
• Minnesota Child Care Center — $2.67 million 
• Mini Child Care Center — $1.6 million
• Sweet Angel Child Care — $1.54 million
• ABC Learning Center — $1.04 million
• Minnesota Best Child Care Center — $3.4 million

According to state officials, the program supports access to child care for 23,000 children and 12,000 working families in Minnesota "during an average month." The program receives hundreds of millions of dollars in federal support annually.

The agency said it was made aware on Dec. 19 that Quality Learning Center intended to voluntarily close. When licensing investigators visited the facility ten days later, they learned it had chosen to remain open.

Investigators with DCYF are looking into four of the nine facilities, though the agency hasn't disclosed which of them are under investigation or what they are being investigated for. The state also did not specify which child care center didn't have children present during this week's inspections. 

The DCYF said Friday that it has 55 open investigations involving providers receiving funding from the program.

Mako Child Care Center, which was also referenced in the video, has been closed since 2022, according to the agency.

"DCYF remains committed to fact-based reviews that stop fraud, protect children, support families, and minimize disruption to communities that rely on these essential services," the agency said.

CBS News Minnesota conducted its own analysis of nearly a dozen day care centers mentioned by Shirley. All but two have active licenses, according to state records, and all active locations were visited by state regulators within the last six months. One, Sweet Angel Child Care, Inc., was subject to an unannounced inspection as recently as Dec. 4. 

CBS News' review found dozens of citations related to safety, cleanliness, equipment and staff training, among other violations, but there was no recorded evidence of fraud.

Shirley's video added fuel to a series of fraud scandals that have roiled Minnesota politics for years — and attracted national attention in recent months. Federal prosecutors have charged dozens of people with allegedly defrauding state programs that offered meals to needy children, behavioral therapy for children with autism and assistance for seniors searching for housing. 

Department of Homeland Security agents conducted what DHS Secretary Kristi Noem called a "massive investigation on childcare and other rampant fraud" on Dec. 29 in Minneapolis following the release of the video. Two DHS officials told CBS News that the agents were expected to inspect over 30 sites that day. 

On Dec. 30, the Department of Health and Human Services said it froze federal child care funding for Minnesota, citing the viral fraud allegations. The department's Administration for Children and Families sends some $185 million in child care funds to Minnesota annually, the agency's head, Alex Adams, said in a video shared by HHS. In an email sent Friday to child care providers and shared with The Associated Press by multiple providers, the state agency said it has until Jan. 9 to provide the Trump administration with a set of verifying information about recipients.