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Minnesota under scrutiny over fraud scandals: Need to get to the bottom of this

Rep. Pat Fallon, R-Texas, discusses the House Oversight Committee hearings on the Minnesota fraud scandal on America Reports.

KSTP-TV, a local ABC affiliate in Minnesota, first reported on alleged fraud at federally funded daycare centers as far back as January 2025.

In the resurfaced segment, reporter Jay Kolls visited two Minnesota daycare centers, including the Quality Learning Center in Minneapolis, to investigate facilities receiving government funding despite having multiple safety and health violations.

Kolls reported that the Minnesota Department of Human Services (DHS) found 95 safety violations, including missing records for 16 children. He added that although he did not see any children at the location, the Quality Learning Center still received nearly $8 million in taxpayer money since 2019.

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KSTP reporter Jay Kolls investigated alleged fraud committed at Minnesota daycare centers in January 2025. (Screenshot/KSTP 5)

"I went to the daycare's location several times, and only once did I see people there," Kolls said. "But I did not see any children."

In the segment, Kolls spoke with a daycare operator who responded, "Not now," when asked if any children were present.

Kolls added that state investigators previously placed the facility on a conditional license in 2022, though its conditional status was removed in 2024.

Kolls also visited the "Minnesota Childcare Center," which he noted was "at the end of [a] small hallway with a steel door, no windows and no visible security cameras."

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The Quality Learning Center in Minnesota was found at the center of an alleged childcare fraud scandal in the state. (Madelin Fuerste / Fox News Channel)

"I visited several times and each time, no apparent sign of any workers, and each time no apparent sign of any children," Kolls said.

The Minnesota Childcare Center, Kolls reported, had 36 violations yet still received approximately $11.5 million in taxpayer money since 2018.

According to a statement the DHS made at the time, the agency can only end payments "when a provider intentionally gives false information on its CCAP billing forms or submits false attendance records; a provider is operating after a suspension or revocation of its license; there’s a credible allegation of fraud; and/or a provider refuses access to attendance records."

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Independent journalist Nick Shirley went viral after visiting several inactive Minnesota daycare centers receiving millions in government funding. (Fox News)

Minnesota state Rep. Pam Altendorf shared the segment on social media Sunday.

"@KSTP reported on the MN Day Care Center fraud back on 01.28.2025. VACANT Day Care Centers - receiving millions of YOUR tax payer dollars. Do you think the violations are part of the cover up…!? Is someone in charge of cite visits - in on this scam…!? @MinnesotaDHS KNEW back months ago. WHY weren’t these daycares in question shut down by them…..!? WHY has the @GovTimWalz administration held no one accountable….!?" Altendorf wrote on X.

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Alleged fraud in Minnesota daycare centers received national attention over the weekend after independent journalist Nick Shirley went viral for his 42-minute video visiting various locations that appeared inactive despite receiving millions in government funding.