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Walz ‘strengthened oversight,’ office says after Minnesota fraud report

Governor Walz has increased oversight and launched investigations into Minnesota daycare centers amid allegations of $240 million fraud involving state and federal funds, officials said.

  • On Monday, Minnesota Governor Tim Walz's office said he has worked for years to crack down on fraud, strengthened oversight, launched investigations into specific facilities, and hired an outside audit firm.
  • A 42-minute video by Nick Shirley showed Somali-owned childcare centers, including Quality Learning Center licensed for 99 children that received roughly $30 million, appearing inactive with locked doors.
  • High-Profile conservatives amplified the viral video, with Musk, Johnson, and Vance calling for further investigation after federal prosecutors charged individuals with stealing over $30 million, and the FBI deployed additional resources.
  • The House Oversight Committee has begun probing fraud claims and requested data from Tim Walz, Minnesota Attorney General Keith Ellison, Treasury, and Justice Departments; Minnesota House Republicans formed an oversight committee amid criticism of Walz's leadership.
  • The issue ties into broader probes that found federal prosecutors charged individuals billing state agencies for services never provided, and investigators exposed sham vendors, shell companies, and money laundering linked to the Feeding Our Future network.
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State rep. blasts Gov. Walz for ignoring daycare fraud warnings

A Minnesota state lawmaker said Gov. Tim Walz and his administration failed to address concerns raised in a state hearing close to two years ago.

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The New York Sun broke the news in New York, United States on Monday, December 29, 2025.
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