Key Takeaways:
- Nine Minnesota child care centers accused of fraud were found to be "operating as expected" after on-site inspections by state investigators
- The centers received millions of dollars in funding from the Child Care Assistance Program in fiscal year 2025
- Four of the nine facilities are under investigation, but the agency has not disclosed which ones or what they are being investigated for
- The state agency is committed to fact-based reviews to stop fraud, protect children, and support families
- The controversy has led to a freeze in federal child care funding for Minnesota, with the state having until January 9 to provide verifying information about recipients
Introduction to the Controversy
The Minnesota Department of Children, Youth and Families has released the results of on-site inspections at nine child care centers that were accused of fraud in a viral video. The video, posted by conservative YouTuber Nick Shirley, alleged that nearly a dozen day care facilities in the state were not providing services despite receiving public funds. The inspections, which were carried out by the state’s Office of Inspector General, found that the centers were "operating as expected" and that children were present at eight of the nine facilities. The agency also released the amount of funding that each center received from the Child Care Assistance Program in fiscal year 2025, with the amounts ranging from $471,787 to $3.68 million.
Investigation and Findings
The investigation into the child care centers is ongoing, with four of the nine facilities under investigation. However, the agency has not disclosed which facilities are being investigated or what they are being investigated for. The state agency has stated that it is committed to fact-based reviews to stop fraud, protect children, and support families. The inspections were part of an "ongoing commitment to oversight" and were carried out to ensure that the centers were providing the services they claimed to be providing. The agency also noted that one of the facilities, Quality Learning Center, had intended to voluntarily close but had chosen to remain open.
Background and Context
The controversy surrounding the child care centers is part of a larger issue of fraud scandals that have been plaguing Minnesota politics for years. 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. The viral video added fuel to the fire, leading to a massive investigation by the Department of Homeland Security and a freeze in federal child care funding for Minnesota. The state has until January 9 to provide verifying information about recipients to the Trump administration.
CBS News Investigation
CBS News conducted its own analysis of the child care centers mentioned in the video and found that all but two have active licenses, according to state records. The news organization also found that all active locations were visited by state regulators within the last six months, with one facility, Sweet Angel Child Care, Inc., being subject to an unannounced inspection as recently as December 4. While the investigation found dozens of citations related to safety, cleanliness, equipment, and staff training, there was no recorded evidence of fraud.
Federal Involvement and Funding
The federal government has become involved in the controversy, with the Department of Health and Human Services freezing federal child care funding for Minnesota. The department’s Administration for Children and Families sends some $185 million in child care funds to Minnesota annually. The state has until January 9 to provide verifying information about recipients to the Trump administration. The freeze in funding has raised concerns about the impact on families who rely on the child care services. The state agency has stated that it is working to provide the necessary information to the federal government to ensure that the funding is reinstated.
Conclusion and Next Steps
The controversy surrounding the child care centers in Minnesota is ongoing, with investigations and reviews still being conducted. The state agency has stated that it is committed to fact-based reviews to stop fraud, protect children, and support families. The federal government’s involvement has added an extra layer of complexity to the issue, with the freeze in funding raising concerns about the impact on families. As the situation continues to unfold, it is likely that there will be further developments and updates on the investigation and the fate of the child care centers. The state agency’s commitment to oversight and accountability is crucial in ensuring that the child care services are provided safely and effectively, and that the funding is used for its intended purpose.