YouTuber's Minnesota Daycare Fraud Claims Spark $1B Scandal, FBI Probe
YouTuber Exposes Minnesota Daycare Fraud, Triggers FBI Probe

A video posted by a young American YouTuber has exploded into a major national scandal, putting Minnesota's childcare funding system under the microscope of federal investigators and triggering a fierce political and social debate.

The Viral Video That Started It All

On December 25, 2025, 23-year-old YouTuber Nick Shirley from California uploaded a lengthy investigative video. In it, he visited several buildings in Minnesota that were officially listed as active daycare centres. Shirley documented what he claimed was a shocking absence: no children, no toys, and no staff at these locations. In one particularly pointed clip, he directly asked, “WHERE ARE THE CHILDREN?”

His core allegation was that these centres were fraudulently collecting millions of dollars from the state via the Child Care Assistance Program (CCAP), a scheme designed to help low-income families afford childcare. Shirley asserted that a vast amount of public money was being claimed for services that were simply not being provided.

National Uproar and Political Firestorm

The video spread like wildfire across social media, especially on X (formerly Twitter). Shirley's follower count skyrocketed from around 200,000 to over 800,000 in a matter of days. The clip caught the attention of influential figures, turning a local allegation into a national talking point.

Elon Musk reposted it, framing it as an example of government waste. Vice President JD Vance also commented publicly on the matter. The intense scrutiny led to immediate action: federal agencies, including the Federal Bureau of Investigation (FBI), initiated a review of the claims. In response, parts of Minnesota's childcare funding were temporarily paused pending checks.

Shirley did not mince words in assigning blame, pointing fingers at Minnesota leaders, including Governor Tim Walz, for not acting sooner. He estimated the scale of the potential fraud could be close to a billion dollars.

Backlash, Controversy, and Safety Concerns

The controversy quickly moved beyond allegations of financial fraud. Shirley faced direct confrontation, as seen in a clip where a man angrily questioned how much money he was making from the exposé. Shirley retorted, “This is about fraud. You’re defending fraud.”

Critics, including some community leaders and experts, argued that his video unfairly targeted Somali Americans, as a number of daycare owners in the area belong to that community. Shirley has repeatedly denied any racial or religious motive, insisting his investigation is solely about the misuse of public funds.

Questions were also raised about his methods. Some noted he did not check official records for every site and entered some buildings without permission, leading to police being called for trespassing at one location. Despite this, Minnesota Republican leaders confirmed they had shared information with him, and state inspectors were dispatched to visit licensed centres.

The situation has turned personal for Shirley, who says he now fears for his safety, citing threats and being followed. His family has publicly voiced their support. As federal investigations proceed, Shirley has announced that a second video is on the way, ensuring this case remains at the volatile intersection of politics, public trust, and community tension.