Nine Minnesota child care centers that appeared in a widely viewed video alleging fraud were inspected and found to be operating normally, according to the Minnesota Department of Children, Youth and Families (DCYF). The inspections showed that all but one center had children present; the exception was not yet open for families when inspectors arrived.
“Children were present at all sites except for one — that site was not yet open for families for the day when inspectors arrived,” DCYF officials said.
Officials did not clarify whether advance notice was given before the inspections. Additionally, the news release referenced by DCYF does not appear on its official webpage, and department representatives did not immediately respond to requests for comment or access to the cited document.
The centers named in the viral YouTube video received significant funding through Minnesota’s Child Care Assistance Program during fiscal year 2025, which ended September 30. Future Leaders Early Learning Center received $3.68 million, Minnesota Best Child Care Center $3.4 million, and Minnesota Child Care Center $2.67 million—all located in Minneapolis. Other recipients included Quality Learning Center ($1.9 million), Mini Child Care Center ($1.6 million), Sweet Angel Child Care ($1.54 million), Tayo Daycare ($1.09 million), ABC Learning Center ($1.04 million), and Super Kids Daycare Center ($471,787). The Mako Child Care Center closed in 2022.
Investigators are focusing further scrutiny on four of these nine centers but have not disclosed which ones are under review.
The information was released after a YouTube video by Nick Shirley titled “I Investigated Minnesota’s Billion Dollar Fraud Scandal” drew over 3.1 million views within eight days of posting.
Following publication of the video, the U.S. Health and Human Services Department halted all funding to Minnesota child care centers pending a federal review, while both the FBI and Department of Homeland Security launched investigations into possible fraud claims.
“The onus is on the state to provide additional verification,” Andrew Nixon, HHS deputy assistant secretary for media relations, told CNN.
Minnesota officials have until Friday to supply federal authorities with documentation verifying enrolled children and their parents at each facility named in the investigation. The HHS has also requested similar evidence from federally funded daycare providers nationwide as part of broader efforts to prevent fraud.
