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Minnesota department of families investigating fraud allegations

CORRECTS LAST NAME ABC Learning Center director Ahmed Hasan stands in the infant room at his daycare center, in Minneapolis, Minn., on Wednesday, Dec. 31, 2025. (AP Photo/Mark Vancleave)

(NewsNation) — The Minnesota Department of Children, Youth and Families released a statement saying it has opened investigations into alleged fraud at day care centers in the state.

The state-run department under the executive branch, led by Gov. Tim Walz, currently has 55 open investigations involving providers receiving funding from the Child Care Assistance Program, overseen by the DCYF, which subsidizes child care costs for low-income families.


“DCYF’s Office of Inspector General (OIG) has a team of investigators who conduct regular oversight into all providers participating in CCAP,” the release said.

“Investigations can range from a one-time compliance check — observing classrooms and reviewing attendance against billing — to longer, in-depth reviews comparing children present with billing records,” it added.

The department said nine day cares displayed in the viral video by independent journalist Nick Shirley were investigated in the form of onsite checks.

In response to the allegations made in the video, the Trump administration has frozen certain child care funds not just for Minnesota but for the entire country, requiring confirmation that no fraud is taking place.