Fury grows over 'empty' Minnesota daycare with misspelled sign accused of receiving $4m in taxpayer funds
SOURCE:Daily Mail
The supposedly empty daycare has reportedly received $4 million in taxpayer funds, another instance of the state not catching the widespread fraud in its social safety programs.
A Minnesota daycare with misspelled signs out the front and no children inside has reportedly received $4 million in taxpayer funds, prompting outrage among lawmakers who now want answers.
The allegations circulated on social media this week following a video posted to X by independent journalist Nick Shirley, which accused Minnesota authorities of allowing the 'largest fraud in US history' to go unchecked.
Gubernatorial candidate Lisa Demuth is among those leading calls for greater scrutiny and is running on a platform of exposing fraud in the Democrat led state.
She spoke out after Shirley visited the Quality Learning Center in Minneapolis and posted a video which reached over 65 million views in less than two days.
The business's name is misspelled as 'Quality Learing Center' in a sign above the front door, and according to the video, the parking lot is mostly empty. In the video, the lobby also appears to be dark.
'Fraud is easy to find — if you’re willing to look for it,' Demuth said. 'Many of these seemingly vacant businesses have been cited by the Walz admin for licensing violations which should have made it easy to catch and stop millions from being stolen.'
'Four million dollars of hard-earned tax dollars going to an education center that can't even spell learning correctly. Care to explain this one, Tim Walz?' Minnesota Rep. Tom Emmer, a Republican, wrote on X in response to the clip.
A supposedly empty Minnesota daycare has reportedly received $4 million in taxpayer funds, according to a video posted to X by independent journalist Nick Shirley that received over 65 million views in under two days
Governor Tim Walz has presided over a $1 billion fraud against Minnesota's social safety net by criminals who submitted false invoices to receive taxpayer dollars. The Quality Learning Center has not been accused of wrongdoing
🚨 Here is the full 42 minutes of my crew and I exposing Minnesota fraud, this might be my most important work yet. We uncovered over $110,000,000 in ONE day. Like it and share it around like wildfire! Its time to hold these corrupt politicians and fraudsters accountable
Congressman Mike Lawler, a Republican from New York, went further, stating that 'folks need to be arrested and prosecuted' and that 'the Governor of Minnesota needs to be held accountable'.
'Congress should hold a hearing immediately and start getting answers,' he added.
Elon Musk also waded into the controversy, saying that once more Americans find out about the alleged fraud, they 'will be horrified at what your tax money is doing'.
Vice President JD Vance addressed the apparent scandal in Minnesota, though didn't name the daycare center specifically.
'What's happening in Minnesota is a microcosm of the immigration fraud in our system. Politicians like it because they get power. Welfare cheats like it because they get rich. But it's a zero sum game, and they're stealing both money and political power from Minnesotans,' he wrote in a social media post on Saturday.
Federal prosecutors say of the 86 people that have been charged as part of these fraud schemes, and 59 have been convicted so far. Many of those accused of the fraud are based within the state's Somali community.
The alleged fraud sparked such scrutiny that, in early December, Dr. Mehmet Oz told Governor Tim Walz that he would withhold federal Medicaid funding from the state unless significant changes were made. Many of these programs are funded, in whole or in part, by Medicaid.
Oz serves as Administrator for the Centers for Medicare & Medicaid Services.
The Quality Learning Center has not been officially accused of wrongdoing by authorities. Still, according to Shirley, a pro-Trump influencer, it has received up to $4 million in state and federal dollars.
In Shirley's clip, he was seen trying to speak with staff at the center. He was instead met with a screaming woman accusing him of being an Immigration and Customs Enforcement (ICE) officer.
'Don't open up! It's ICE!' the woman repeatedly shouted.
Shirley eventually got through to her and convinced her he wasn't ICE and that he was a YouTuber merely asking about potential fraud.
Another man with Shirley held up a paper that he said was evidence that the Quality Learning Center had received $1.9 million in taxpayer funds in fiscal year 2025, specifically through Minnesota's Child Care Assistance Program (CCAP). He claimed that the daycare had received $4 million in total from this program.
Local news station KSTP reached a different conclusion after investigating the facility in January.
The station reported it received $7.8 million in federal dollars since 2019, though it isn't clear whether this figure includes funding from sources other than CCAP.
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How should taxpayers hold officials accountable when millions are lost to alleged fraud like this?
Congressman Tom Emmer, a Republican of Minnesota caught onto the news about the Quality Learning Center and urged Governor Walz to look into it
Pictured: Shirley gets into an argument with a woman outside the daycare center who believed for a while that he was a member of Immigration and Customs Enforcement
The claims prompted questions about where taxpayer money went, as the daycare center racked up 11 violations during a state inspection on June 23, 2025, according to government records.
These violations included failing to keep areas where children play from falling into disrepair, keeping items in cribs for infants, not following a doctor's instructions when giving children prescription medicine, and hiring an unqualified substitute caregiver.
Since May of 2022, there have been 121 violations at the daycare, records showed, including allegedly failing to request background checks for 14 employees.
The only punishment the daycare has faced in this three-year period is paying two separate $200 fines, according to state records.
Minnesota House Speaker Designate, Rep. Lisa Demuth, a Republican, told KSTP in earlier this year that this is an example of how 'oversight is incredibly lacking'.
'You have pages here that are publicly available, with repeated failure to keep hazardous items away from children,' Demuth said.
'Failure to maintain adequate staff-to-child ratios. Background checks. Failure to keep personnel files. These are repeated violations.'
If the Quality Learning Center is found to have benefited from CCAP funds, the scandal could broaden.
The allegations of fraud at the Quality Learning Center led to a growing number of Minnesota non-profits facing similar claims.
Gubernatorial candidate Lisa Demuth is among those demanding answers following Shirley's video
At the nonprofit Feeding Our Future, the organization claimed to serve tens of thousands of meals to low-income children during the pandemic.
But in a recent court filing, prosecutors allege most of those meals never existed, and instead, the taxpayer money went to luxury homes, cars, jewelry and real estate abroad. According to court documents, the nonprofit misappropriated $250 million.
One housing program in Minnesota ballooned from an expected $2.6 million to $104 million, mostly due to fake billing. Hundreds of providers were reimbursed for services that were never provided.
Another program that was supposed to provide therapy to autistic children did nothing of the sort, according to prosecutors.