A video has surfaced alleging that certain childcare centers in Minnesota were involved in fraudulent activities, leading to a defensive response from Governor Tim Walz's administration. A spokesperson for the governor stated that he has been actively working to combat fraud and has sought additional authority from the state legislature to enhance oversight and enforcement measures. The spokesperson noted that investigations into specific facilities have been initiated, including the closure of one center, and highlighted the hiring of an external firm to audit payments to high-risk programs. The governor has also supported criminal prosecutions related to these issues.

On December 18, Governor Walz emphasized his commitment to preventing fraud and collaborating with federal partners to address the situation. The allegations have been brought to public attention by citizen journalist Nick Shirley, who claims to have uncovered significant fraud, including daycare centers that received substantial federal aid despite having no children enrolled.

The Federal Bureau of Investigation (FBI) has acknowledged its awareness of the situation in Minnesota and has reportedly increased its personnel and resources to investigate large-scale fraud schemes that exploit federal programs. FBI Director Kash Patel stated that addressing fraud that affects taxpayers and vulnerable populations remains a priority for the agency.

In response to the alleged fraud, the Small Business Administration (SBA) is reportedly terminating grants to Minnesota, which are linked to the Somali community in the state. This development raises concerns about the broader implications of fraud investigations on community support and resources.