Minnesota Daycares Hit With 436 Fraud Investigations

Taxpayer-funded daycares are so rife with fraud in Minnesota that there are 436 open investigations related to daycare fraud in just that one state.

Nick Shirley, the young muckraker who blew the lid off what he described as an insanely large and lucrative fraud network in Minnesota, highlighted the recent report on the number of investigations specifically involving daycares in Tim Walz’s woke state:

🚨 Minnesota has now launched investigations into 436 government funded daycares

Tim Walz: it’s white supremacy to investigate fraud

No, Tim Walz is and was the fraud.

A Somali Learing Center and a 23yr old ended Tim Walz political career FOREVER.

EXPOSE IT ALL. pic.twitter.com/MFwjez8c6g
— Nick shirley (@nickshirleyy) July 8, 2026

That’s what the Trump administration is hoping to do, and the heat is on so high even Minnesota officials are scrambling to pretend they care about identifying egregious theft of taxpayer funds. Gov. Walz (D) lost his political career over this scandal, as Shirley pointed out.

Minnesota’s Child Care Assistance Program or (CCAP) has finally taken one piece of advice from outside auditors, according to ABC5 KSTP:

In a move to detect fraud more quickly, Minnesota has begun rolling out a long-discussed electronic attendance system for its taxpayer-funded childcare program, but only a tiny portion of the program is required to use it to start … The agency confirmed it now has 436 open investigations into daycares that receive taxpayer support – including CCAP funding …
Billing records previously obtained by 5 INVESTIGATES showed the providers under investigation received millions of dollars in taxpayer funding and saw billings increase dramatically over a two-year period.

Ironically, Assistant Commissioner Bharti Wahi of the Minnesota Department of Children, Youth, and Families is now claiming that the state government really has been trying to implement reform for a long time. Just trust him. “We want this program to go to those who need it most, and part of our responsibility is to really make sure that we are taking program integrity very seriously,” Wahi pontificated.

Wahi could not explain to ABC5 why his department didn’t see the significant billing increase as a red flag, however. “I think that part of our move to electronic attendance record keeping is really about being able to proactively identify and pull reports,” he lamely deflected. Wahi would not say how many places his department in particular is investigating.

And only 81 providers are on the new electronic rollout, which is fewer than 10% of the childcare providers in the state program. In other words, this is just an effort to save face, not truly to reform.

Penny Allen, chief financial officer of New Horizon Academy, the state’s largest childcare provider, said the current system allows attendance records to be submitted after the fact rather than automatically uploaded in real time.
“It’s not a real online system. It’s an after-the-fact attendance system,” she said. “The system isn’t ready to go yet.”

Unsurprisingly, Wahi has no date on which we can expect statewide implementation. Don’t expect one any time soon.

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