Gravy Train Over: Feds End Child Care Payments to Minnesota Amid Rampant Fraud Allegations

Matt Vespa | December 30, 2025 6:30 PM

It’s about time: the Trump administration has cut off federal child care payments to Minnesota until it can get to the bottom of widespread fraud in daycare centers across the state. YouTuber Nick Shirley posted a viral video showing these empty centers that are supposed to be packed with children. One location that’s gained Internet infamy is the Quality ‘Learing’ Center, where Shirley was accosted by a crusty white liberal who thought he was an ICE agent.

🚨 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

We ALL… pic.twitter.com/E3Penx2o7a
— Nick shirley (@nickshirleyy) December 26, 2025

Here's more from Deputy Secretary of Health and Human Services Jim O’Neill:

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.

Today we have taken three actions… pic.twitter.com/VYbyf3WGop
— Deputy Secretary Jim O'Neill (@HHS_Jim) December 30, 2025

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.
Today we have taken three actions against the blatant fraud that appears to be rampant in Minnesota and across the country:
1. I have activated our defend the spend system for all ACF payments. Starting today, all ACF payments across America will require a justification and a receipt or photo evidence before we send money to a state.
2. Alex Adams and I have identified the individuals in @nickshirleyy 's excellent work. I have demanded from @GovTimWalz a comprehensive audit of these centers. This includes attendance records, licenses, complaints, investigations, and inspections.
3. We have launched a dedicated fraud-reporting hotline and email address at https://childcare.gov Whether you are a parent, provider, or member of the general public, we want to hear from you.