Scrutiny Mounts for Governor Walz After Viral Video Exposes $4 Million Daycare Discrepancies
Minneapolis, Sunday, 28 December 2025.
Political pressure intensifies after a viral investigation reveals a Minnesota daycare received $4 million in state aid despite appearing empty and displaying a misspelled sign on the building.
Viral Investigation Sparks National Outcry
The controversy centers on a viral video released on Friday, December 26, 2025, by independent journalist Nick Shirley, which has since garnered approximately 70 million views [2]. The footage documents a visit to the Quality Learning Center in South Minneapolis, a facility licensed to care for 99 children [1]. Despite receiving roughly $4 million in state taxpayer funding, the center appeared inactive during the weekday visit [1]. Shirley documented a sign on the building that misspelled the word “learning” as “learing,” and noted that the office appeared closed with no children visible on the premises [1][2]. The encounter escalated when a woman at the site confronted the journalist, shouting accusations that he was affiliated with immigration enforcement [1][2].
Analyzing the Financial Discrepancies
This specific incident has become a focal point for critics questioning the efficacy of Minnesota’s oversight mechanisms. Minnesota Representative Tom Emmer highlighted the anomaly of millions in tax dollars flowing to an education center with a misspelled name, asking Governor Walz to explain how such an oversight could occur [2]. The $4 million allocated to this single center is part of a much larger web of social service disbursements now under federal scrutiny [1]. Republican gubernatorial candidate Lisa Demuth argued that fraud is detectable for those willing to look, noting that many businesses appearing vacant had previously been cited for licensing violations by the Walz administration yet continued to receive funding [2].
The Scale of Alleged Mismanagement
The concerns regarding the daycare center are merely a microcosm of what federal investigators have termed the “largest fraud in US history” [2]. Authorities are currently investigating allegations that charities, some tied to the Somali immigrant community, have defrauded the state of substantial sums intended for feeding children, housing the homeless, and providing autism therapy [2]. Since 2018, approximately $18 billion has been allocated to these programs, with federal investigators estimating that potentially half of this amount—9 billion dollars—may have been stolen through fraudulent schemes [2]. To date, these investigations have led to 86 individuals being charged and 59 convictions [2].
Political Repercussions and Administration Response
The scandal has drawn sharp criticism from high-profile national figures. Vice President JD Vance addressed the broader Minnesota scandal on Saturday, December 20, 2025, prior to the release of the viral daycare video [2]. Following the video’s release, Representative Mike Lawler described the situation as a “microcosm of the immigration fraud in our system,” while Elon Musk warned that taxpayers would be horrified by the misuse of funds [1][2]. In response to the intensifying pressure, the Walz administration has defended its record, emphasizing that investigations are ongoing and disputing the scale of fraud suggested by critics [1]. State officials assert that reforms are currently underway to improve the verification and oversight of social service programs [1].