Minnesota House Speaker Lisa Demuth (R) said Monday that her caucus pointed conservative YouTuber Nick Shirley in the direction of day care facilities in the state amid concerns over fraud.
Demuth said at a virtual press conference that the state GOP has been “working with” Shirley to address fraud in the state.
“Our caucus has been working to expose fraud for years, including working with Nick Shirley and agency whistleblowers to get the information out to the public and to hold the Walz administration accountable,” she said.
State Rep. Ryan Niska (R) clarified later in the press conference that staffers within the caucus provided information to a man identified in Shirley’s video as David.
Shirley released a video on Friday detailing his visits to the day care sites. He alleged that multiple centers were not providing services to children at all and asked employees to show whether children were present at the facilities.
The video drew new attention to the issue from the Trump administration and congressional Republicans. KSTP TV-5 reported in January, however, that the Minnesota Department of Human Services (MDHS) was already conducting more than 60 probes into child care centers receiving federal funding.
The Department of Homeland Security dispatched agents to Minneapolis on Monday, while the Small Business Administration and Department of Health and Human Services have paused payments to Minnesota.
The GOP-led House Oversight and Government Reform Committee has also scheduled hearings on the matter in the new year and invited Minnesota Gov. Tim Walz (D) to testify.
Since 2022, the Department of Justice has charged 98 people as part of its sweeping probe into fraud within programs under MDHS. Assistant U.S. Attorney Joseph Thompson told reporters earlier this month that it is possible that “half or more” of the $18 billion billed to 14 MDHS programs since 2018 is fraudulent.
Court records reviewed by the Minnesota Star Tribune, which has covered the story for over a decade, indicate that the amount defrauded is closer to $218 million.
Walz, who has disputed Thompson’s estimate, ordered a third-party audit of the 14 aforementioned programs in October. He also appointed Tim O’Malley to serve as director of program integrity and strengthen fraud prevention earlier this month.