DHS investigating widespread fraud at MN daycares

FOX 9 Minneapolis-St. Paul covers a Department of Homeland Security investigation into alleged widespread fraud affecting Minnesota daycare centers. The station reports that federal authorities are actively investigating allegations of fraud in the child care sector, with DHS agents conducting door-to-door checks at facilities throughout the Twin Cities area.

According to FOX 9 Minneapolis-St. Paul, the investigation was prompted in part by a YouTube video from a content creator who claimed to uncover millions of dollars in alleged fraud within Minnesota’s child care reimbursement system. The station reports that DHS Deputy Director Kash Patel pledged to continue investigating fraud throughout the state.

FOX 9 Minneapolis-St. Paul states that the Minnesota Department of Human Services responded to the viral video, confirming that facilities mentioned in the content were visited by child care licensing staff within the past six months as part of routine licensing reviews. According to the station, the department indicated it would revisit each facility discussed in the video to address concerns raised.

The station reports that some of the child care centers featured in the video had previously faced state action. FOX 9 Minneapolis-St. Paul claims one facility was shut down by the state as recently as the previous week, and notes that investigators identified large cash withdrawals on a continuous basis at some locations.

According to FOX 9 Minneapolis-St. Paul, the alleged fraud issue in Minnesota’s child care system has been pervasive over several years. The station reports that Governor Tim Walz allocated $5 million to the state budget to combat fraud within the child care system, funding staff training, cultural sensitivity initiatives, and audit improvements. FOX 9 Minneapolis-St. Paul notes the station is still investigating how that funding was used and awaiting reports from the governor’s office.

The video includes Governor Walz’s response, in which a spokesman—according to FOX 9 Minneapolis-St. Paul—stated that the administration has strengthened oversight, implemented new audit procedures, and urged the state legislature to grant additional authority to address fraudulent activity.

FOX 9 Minneapolis-St. Paul has reported on alleged child care fraud issues over the years, including exposures dating back to at least 2019. The ongoing investigation underscores persistent concerns about financial integrity in Minnesota’s child care reimbursement and licensing systems.

In FOX 9 Minneapolis-St. Paul’s Own Words

“Federal agencies investigating allegations of widespread fraud at child care centers, with DHS agents visiting facilities across the Twin Cities.”

“A YouTuber recently claimed to uncover millions of dollars in fraud within Minnesota’s child care reimbursement system.”

“Governor Walz added $5 million to the state budget to fight fraud in the child care system, funding staff training and audit improvements.”