Democrat Governor Tim Walz is blaming President Donald Trump for Minnesota’s escalating Somali fraud crisis after the Department of Health and Human Services (HHS) announced Tuesday that it has frozen all child care payments to the state.
In a video released on X Tuesday evening, Deputy Secretary Jim O’Neill and Administration for Children & Families Assistant Secretary Alex Adams said:
“We have frozen all child care payments to the state of Minnesota.”
“You have probably read the serious allegations that the state of Minnesota has funneled millions of taxpayer dollars to fraudulent daycares across Minnesota over the past decade.”
O’Neill explained that HHS has taken three actions “against the blatant fraud that appears to be rampant in Minnesota and across the country.”
The first action involves activating HHS’s “Defend the Spend system,” which requires justification and either receipts or photo evidence before federal funds are released to a state.
The second action stems directly from journalist Nick Shirley’s investigative reporting.
O’Neill said officials have identified individuals featured in Shirley’s video and are demanding a “comprehensive audit of these centers,” including attendance records, licenses, complaints, investigations, inspections, and related documentation.
HHS said its third action is the launch of a fraud reporting hotline and email address, allowing parents, providers, and members of the public to submit tips.
“We have turned off the money spigot, and we are finding the fraud,” the officials said.
Shirley’s viral videos document concerning activity in the Minneapolis region, including facilities that receive public funding but appear inactive or empty.
His findings follow statements from a federal prosecutor estimating that at least $9 billion in fraud has occurred in Minnesota under Walz’s administration.
Earlier reports revealed that the Minnesota government continued paying an accused Somali fraudster to operate assisted living homes while he awaited trial for his alleged role in the nation’s largest pandemic-related scam involving a fraudulent charity.
According to First Assistant U.S. Attorney Joe Thompson, 14 Medicaid services in Minnesota are currently at “high risk” for fraud.
Shirley, who appeared on Fox News over the weekend, described how he found daycare and learning centers with no children present that may be functioning as fronts for fraud schemes.
“It’s so obvious,” Shirley said, describing the suspected fraud.
“If you’re living in Minnesota, you have to raise your eyebrows and think, ‘What’s going on?’
“Literally, if you drive around Minneapolis, you’ll see daycare centers, autism centers — you will then see transportation companies that have snow piled up as if they haven’t moved it in months.
“A kindergartner could’ve figured out there was fraud going on.”
Walz addressed the viral reports on Tuesday.
In a post on X, acknowledging that Minnesota programs have been “taken advantage of” by individuals driven by “greed” over the needs of children and seniors.
However, he then attempted to shift the blame to President Trump.
“We’ve spent years cracking down on fraud – referring cases to law enforcement, shutting down and auditing high-risk programs,” Walz said in a social media post.
“Trump keeps letting fraudsters out of prison.
“To the national news just now paying attention, here’s what we’ve done to stop it.”
We’ve spent years cracking down on fraud – referring cases to law enforcement, shutting down and auditing high-risk programs.
Trump keeps letting fraudsters out of prison.
To the national news just now paying attention, here’s what we’ve done to stop it. pic.twitter.com/bgvKPxVxxm
— Tim Walz (@Tim_Walz) December 30, 2025
Walz did not provide any evidence linking the president to the allegations of fraud.
READ MORE – Whistleblower Exposes Massive Somali Fraud Scam in Ohio
Our comment section is restricted to members of the Slay News community only.
To join, create a free account HERE.
If you are already a member, log in HERE.