Nick Shirley testifies before Congress on Minnesota fraud scandal

Fox News aired coverage of a congressional hearing examining alleged fraud in Minnesota’s federally-funded child care and social services programs. According to the network, the hearing featured testimony from independent journalist Nick Shirley, whose viral videos allegedly exposed widespread fraud, and Scott Dexter, a former Minnesota fraud investigator who claims his work was obstructed by political concerns.

According to Fox News, the hearing chairman opened by describing what federal prosecutors have characterized as “the nation’s largest COVID era fraud,” with 57 defendants convicted in schemes allegedly involving programs designed to provide meals for children. The chairman stated that Shirley’s December 2025 YouTube video “highlighted suspected fraud in Minnesota child care programs” and allegedly “prompted federal authorities to intensify investigations.” According to the broadcast, Shirley released a second video documenting alleged fraud in transportation services for children, the disabled, and the elderly, allegedly uncovering “companies with questionable addresses and vehicles” that “remained idle for extended periods of time.”

Fox News reported that Scott Dexter, a former fraud investigator with the Minnesota Department of Human Services, testified about his experiences investigating alleged child care assistance program fraud. According to Dexter’s testimony as aired, he claimed that many centers “operated out of commercial spaces with windows totally covered, no visible play areas, and very few children ever present.” Dexter allegedly stated that through surveillance and data collection, investigators “repeatedly documented patterns of over billing, non-existent attendance, and in some cases, children being signed in for hours they were never actually at the center.”

According to the Fox News broadcast, Dexter testified that as investigations progressed, “many of the centers receiving the highest levels of CCAP funding were owned and operated by Somali individuals and the families served were predominantly Somali.” Dexter allegedly claimed this “was not the basis for selecting cases but it did become the basis for accusations against us,” stating investigators were “labeled as racially biased despite the fact that our case selection was driven entirely by funding data.” According to his testimony as aired, an outside review was launched and “new restrictions were placed on our work,” which Dexter claims “significantly hindered our ability to do our jobs effectively.”

The broadcast included testimony from Nick Shirley, who according to Fox News described making a “41-minute video that I posted on platforms like X and YouTube” that “received over 100 million views and it created instant change within our government.” Shirley allegedly testified that he visited daycare facilities and found “industrialized building” locations with “blacked out windows” and “no footprints in the snow of any children.” According to Shirley’s testimony as aired, one facility had received $1.9 million yet allegedly “cannot even spell learning right on their sign.” Shirley claimed that following his reporting, “the HHS department froze over $185 million, and to this day, not a single business has been able to prove proof of legitimacy.”

Fox News also aired testimony from Jennifer Larson, identified as founder and CEO of Holland Center, an autism services provider in Minnesota. According to Larson’s testimony, legitimate providers are allegedly suffering due to payment freezes implemented in response to the fraud investigations. Larson claimed “the state has withheld over $400,000 in Medicaid funds for my own program” and stated she “had to infuse my personal funds to survive these weeks.” According to her testimony as broadcast, the payment delays are allegedly causing providers to reduce hours, cut staff, and potentially close, which Larson claims will harm children with autism who depend on consistent therapy.

The hearing also featured contentious exchanges between Republican and Democratic members, according to the Fox News coverage. Democratic Ranking Member Jamie Raskin allegedly stated the hearing was politically motivated, arguing that “fraud in Minnesota was already being investigated and prosecuted under the last administration” with “more than 90 people being charged and 64 people being convicted of federal criminal offenses” under the Biden administration. According to the broadcast, Raskin criticized President Trump’s use of pardons for convicted fraudsters and alleged that the administration has “dismantled the infrastructure that actually prosecutes white collar crime and fraud in America.”

In Fox News’s Own Words

“We’re looking at here a decadelong scam, fraud. One program was this feeding our future program taking federal Americans hard earned tax dollars supposedly providing meals to children. Problem was there were no meals and no kids.”

“I arrived and it was an industrialized building. The first thing I noticed is all the windows are blacked out and there’s no footprints in the snow of any children. There’s no playgrounds or anything that would make it look like it’s a child care.”

“Children like my son aren’t going to have services because they stole money from the government and faked these things. It is disgusting.”

The congressional hearing represents a significant examination of alleged vulnerabilities in federally-funded social services programs. According to testimony featured in the Fox News broadcast, the case raises questions about oversight mechanisms, the balance between fraud prevention and service delivery, and the political sensitivities that may affect fraud investigations. The testimony suggests tension between efforts to root out alleged fraud and concerns about avoiding discrimination against specific communities, while also highlighting the real-world consequences for legitimate service providers and vulnerable populations when payment systems are disrupted.