Feds launch 'massive' investigation after viral video alleges Minnesota daycare fraud

Federal authorities were conducting a "massive" investigation in Minnesota on Monday, days after a video posted online by an independent journalist on alleged fraud involving daycare centers. 

Homeland Security Investigations (HSI) and U.S. Immigration and Customs Enforcement (ICE) were on the ground in Minneapolis, Homeland Security Secretary Kristi Noem wrote on X. 

Fox News Digital has reached out to DHS, as well as ICE and the FBI. 

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A video Noem posted online showed HSI agents questioning someone outside a building, but it was not clear what type of business the person was involved in. 

Another video posted by ICE showed investigators going door-to-door at various sites. 

"The American people deserve answers on how their taxpayer money is being used and ARRESTS when abuse is found. Under the leadership of @Sec_Noem, DHS is working to deliver results," the agency wrote on X. 

Still reeling from a $250M fraud scheme in which several people have been charged, Minnesota was thrust into the spotlight again this weekend after independent journalist Nick Shirley on Friday posted a 42-minute video on YouTube, documenting visits to several daycare centers in the blue state.

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In one clip, Shirley and a man are seen at what appears to be a largely inactive childcare facility. 

The building also displays a misspelled sign reading "Quality Learing Center," even though the center reportedly is supposed to account for 99 children and received roughly $4 million in state funds.

The video immediately sparked widespread backlash, drawing criticism of Minnesota Gov. Tim Walz from several high-profile figures, including Vice President JD Vance, Rep. Mike Lawler, R-N.Y., Donald Trump Jr. and Elon Musk.

On Sunday, the White House reposted an X post from Education Secretary Linda McMahon, who called the alleged fraud a "breathtaking failure that has happened under the watch" of Walz.

During a Sunday appearance on Fox News' "The Big Weekend Show," Shirley said the alleged fraud was "so obvious" that a "kindergartner could figure out that there is fraud going on."

"Fraud is fraud, and we work too hard simply just to be paying taxes and enabling fraud to be happening," he said. 

Over the weekend, FBI Director Kash Patel said the agency surged additional personnel and investigative resources to Minnesota as part of an ongoing effort to "dismantle large-scale fraud schemes exploiting federal programs."

At the time of the video's release, Walz was already under heavy fire amid the scandal enveloping his administration that notably included at least $1 billion lost to alleged social services fraud largely tied to Minneapolis' Somali community.

Fox News Digital has reached out to the governor's office for comment, but they did not immediately respond.

Fox News Digital's Sophia Compton contributed to this report.