YouTuber Nick Shirley recently elicited nationwide attention with a viral video about potential fraud involving Somali-run childcare centers in Minnesota. All he did was visit the facilities and ask questions while filming, but he was met with hostility at nearly every turn. Many of the locations did not appear operational, so DHS quickly sent a unit to knock on doors in the Gopher State to see whether those places were legit. The president now wants to investigate other blue states for fraud, too, but he’s not the only one looking for answers. The fuse has been lit.
Fraud Chasers
While legacy media’s first move was to try to debunk Shirley’s claims instead of digging further into the investigation, one news outlet outside the mainstream followed Shirley’s lead and started knocking on doors in Washington State. In Federal Way, The Center Square visited several Somali-run daycares, but only one facility appeared to have any children in it. Some people said that “they were hoping to have children in their care, but did not have an application available or anyone to talk with about enrolling a child.” Not all locations visited were this friendly.
At Eyow Childcare Inc., a home-based daycare on 6th Avenue SW, the homeowner called the police when the reporters arrived the second time. One officer entered the home and later noted that three children were inside, but the police did not verify whether those kids were enrolled in the daycare, which received nearly $160,000 in subsidies and grants between July and November in 2025, according to fiscal.wa.gov.
The people who answered the door at Halimo Daycare told the journalists that no children were yet enrolled, though “[a] Facebook post from the city of Federal Way shows an Oct. 29, 2025, ribbon cutting ceremony for the daycare,” reported The Center Square, “indicating it was one of three newly opening centers receiving grant funding.”
“Of the 25 home-based daycare providers within a one-mile radius in Federal Way,” explained The Center Square, “12 of the providers listed on Child Care Aware of Washington are identified as Somali and accept multiple state subsidies.” The outlet did not send journalists to all these locations, but it noted that others received as much as $690,000 in subsidies between July and November 2025.
Other independent journalists have also hit the streets in the Seattle area and uncovered potential fraud at Somali-run daycares, one of which apparently received more than $200,00 last year despite being licensed for nine children and having only three enrolled.
Rumblings in Ohio
Buckeye State lawmaker Josh Williams, a Republican from Sylvania Township, is urging the Ohio Department of Children and Youth to examine daycare facilities following allegations that some providers are billing for children who aren’t present. “What’s happening in Minnesota is almost certainly occurring in Columbus – and Ohio needs to use every power we have under the law to stop it,” Williams said in a social media post.
Forty-two Ohio lawmakers signed a letter Williams drafted requesting that the state conduct more unannounced inspections of childcare facilities that receive state funds. They want audits of attendance records and billing submissions. The letter also calls for the state to suspend payments to providers suspected of fraudulent activity, with confirmed cases referred to law enforcement.
“There have been widespread public reports,” reads the letter, “alleging that certain child care facilities participating in publicly funded child care programs are fraudulently billing the state of Ohio for children who are not actually in attendance.”
With more than 5,000 publicly funded childcare centers enrolling nearly 185,000 children, “there is certainly the potential for fraud,” said Governor Mike DeWine, but he seems to believe Ohio has enough safeguards in place. Williams, on the other hand, said if the state doesn’t comply, “they can expect a subpoena.”
Califraudia
Representative Ro Khanna of California, a Democrat, recently told CNBC that he is starting a bipartisan effort through the House Oversight and Government Reform Committee to find and eliminate state-level fraud. “It’s not going to be a blue state or a red state thing,” he said. “Obviously, there have been the reports in Minnesota and California, but it’s beyond that.”
Khanna’s motives might not align with the reasons others have for rooting out fraud. He received backlash last month from donors and allies in the tech industry after he endorsed a wealth tax, which probably wasn’t a bright idea since he represents Silicon Valley. Some people cited instances of fraud as a reason why the tax wouldn’t work.
Plenty of reports over the years have highlighted possible flaws and loopholes in the Golden State’s social programs. The Health and Human Services Department Inspector General determined last year that the state improperly claimed $52.7 million in federal Medicaid reimbursement for payments made on “behalf of noncitizens with unsatisfactory immigration status.” Most recently, the California State Auditor released a new report in December, identifying programs that might have potential fraud in the state. Those labeled high risk include unemployment insurance, Medi-Cal eligibility, the state’s management of federal COVID-19 funds, and the CalFresh program, which administers funds for the Supplemental Nutrition Assistance Program (SNAP). Yet, no matter how many reports and audits highlight these matters, few people seem interested in fixing the problems. In such a blue state, it’s difficult to imagine anybody there doing much about it – unless the federal government intervenes.
‘It’s a Giant Scam’
We still don’t know enough to make concrete conclusions about the daycares in Minnesota, let alone in Washington and Ohio. But Shirley’s video sparked widespread curiosity about where taxpayer money is going. Lawmakers and Americans nationwide want answers. “We’re going to get to the bottom of all of it,” the president said during a New Year’s Eve party at Mar-a-Lago. “It’s a giant scam.”
Fraud is widely expected in most states. They even have acceptable error rates: With SNAP, for example, the target is 6%, but the national average in fiscal year 2024 was 11%, which combines under- and overpayments. Alaska made errors in 25% of its payments, a big number until you learn it was 60% in 2023. Why would any amount of fraud be acceptable? Perhaps 2026 will be the year taxpayer money is taken seriously. That sounds laughable, but if more journalists outside the legacy media continue to take action, it might be hard for the government to ignore.
