Kristi Noem Orders ICE Door-to-Door Visits at Minnesota Childcare Centers Despite State Inspections Finding No Fraud

Homeland Security Secretary Kristi Noem has deployed ICE agents to conduct door-to-door visits at Minnesota childcare centres, despite state inspections showing no evidence of fraud at facilities highlighted in a viral YouTube video that has sparked federal intervention.

The Department of Homeland Security announced a 'massive operation' in Minneapolis on 30 December, with federal agents interviewing business owners and warning that arrests would follow where abuse is found. The move comes after a YouTube video by right-wing content creator Nick Shirley accused nearly a dozen daycare facilities—many operated by Somali Americans—of misusing millions in taxpayer funds, though Minnesota officials say recent state inspections uncovered no fraud evidence justifying such claims.

Federal Crackdown Despite State Clearances

Minnesota Department of Children, Youth, and Families Commissioner Tikki Brown confirmed at a news conference on 29 December that all 10 centres featured in Shirley's video had been inspected within the last six months. According to Brown, none of those state investigations uncovered findings of fraud that would warrant cutting funding or pausing payments.

'While we have questions about some of the methods used in the video, we do take the concerns that the video raises about fraud very seriously', Brown said. However, she stressed that past inspections found children present during visits and no evidence of fraudulent activity.

Despite these clearances, federal authorities have launched an expanded investigation. FBI Director Kash Patel claimed on X that the FBI had 'surged' personnel and investigative resources to Minnesota even before the video went viral, calling the situation 'just the tip of a very large iceberg'. Vice President JD Vance also praised Shirley's video, which has garnered millions of views on X.

Racial Targeting Allegations Emerge

The investigation has become increasingly controversial as federal officials revealed that 85 of the 98 people charged so far in broader Minnesota fraud cases are Somali American, raising accusations of racial targeting. Attorney General Pam Bondi stated on X that the Justice Department had 'charged 98 individuals—85 of Somali descent—and more than 60 have been found guilty in court'.

Civil rights groups and Somali community leaders warn that the political reaction risks stigmatising Somali Minnesotans as a whole. Ibrahim Ali, whose parents own the Quality Learning Center featured in Shirley's video, told the New York Post that the YouTuber visited outside regular operating hours of 14:00 to 22:00 . 'Do you go to a coffee shop at 11 pm and say, "Hey, they're not working?"' Ali said.

Disputed $9 Billion Fraud Estimate

The door-to-door visits occur against the backdrop of disputed federal claims about the scale of fraud. Earlier in December, First Assistant US Attorney Joe Thompson suggested potential fraud across Minnesota's Medicaid programmes could reach $9 billion or more—a figure Governor Tim Walz and state officials strongly dispute.

'We don't have evidence in hand to suggest that we have $9 billion in fraud in these benefits over the last seven years', said John Connolly, Minnesota's state Medicaid director. State officials say they have evidence substantiating fraud totalling tens of millions—not billions—and have repeatedly requested federal prosecutors share their evidence so the state can stop payments. Walz called this estimate 'sensationalised'.

The Viral Video Spark

Shirley's 42-minute video, posted on 26 December, documented visits to several Minneapolis childcare facilities that appeared largely inactive. The video exploded online, drawing millions of views and immediate reactions from high-profile political figures.

However, state licensing records reviewed by CBS News showed that all but two of the nearly dozen centres Shirley visited had active licences, and inspections found dozens of citations related to safety, cleanliness, and staff training—but no evidence of fraud. The Quality Learning Centre, which became a focal point due to a misspelled 'Learing' sign, was initially reported as closed by state officials. However, the Minnesota Department of Children, Youth, and Families later clarified the centre had decided to remain open after notifying the state it planned to close.

A History of Fraud Battles

The allegations come amidst legitimate, long-running federal investigations into fraud in Minnesota. In 2022, federal prosecutors announced initial indictments in a $250 million scheme to defraud a federally funded child nutrition programme called Feeding Our Future. As of December, prosecutors had charged 78 people in that case.

Minnesota has been grappling with fraud concerns for over a decade. FOX 9 reported on daycare fraud investigations dating back to 2015, which led to charges and guilty pleas. Governor Walz added $5 million to the state budget in 2019 for new investigators, analysts, and a tracking system in response to earlier fraud cases.

However, critics say the current federal response disproportionately targets one community. President Donald Trump has repeatedly called Minnesota a 'hub of fraudulent money laundering activity' and announced plans to end protected status against deportation for Somalis in the state. Earlier in December, ICE launched Operation Metro Surge in the Twin Cities, leading to more than 400 arrests specifically targeting undocumented Somali immigrants.