Federal Investigation Targeting Alleged Day Care Fraud in Minnesota

Tue Dec 30 2025 22:21:33 GMT+0200 (Eastern European Standard Time)

Federal authorities ramp up scrutiny in Minnesota following fraud allegations related to day care centers operated by members of the Somali community, as investigations reveal substantial financial misconduct.

In response to allegations of up to $100 million in fraud involving day care centers run by Somali residents, federal officials have intensified their operations in Minnesota. The Department of Homeland Security and the FBI are leading investigations into claims that the centers exploited government programs. This scrutiny follows previous fraud cases within the state, raising concerns particularly focused on the state's large Somali population. As more than half of defendants in existing fraud cases are of Somali descent, the ongoing investigations have ignited discussions on community perceptions and accountability.

MINNEAPOLIS (AP) — A surge of federal officers in Minnesota follows new allegations of fraud by day care centers run by Somali residents.

President Donald Trump has previously linked his administration’s immigration crackdown against Minnesota’s large Somali community to a series of fraud cases involving government programs in which most of the defendants have roots in the east African country.

Surge in federal officers

Department of Homeland Security Secretary Kristi Noem and FBI Director Kash Patel both announced an increase in operations in Minnesota this week. The move comes after a right-wing influencer posted a video Friday claiming he had found that day care centers operated by Somali residents in Minneapolis had committed up to $100 million in fraud.

Tikki Brown, commissioner of the Minnesota Department of Children, Youth, and Families, said at Monday news conference that state regulators took the influencer’s allegations seriously.

Noem posted on social media that officers were “conducting a massive investigation on childcare and other rampant fraud.” Patel said the intent was to “dismantle large-scale fraud schemes exploiting federal programs.”

Past fraud in Minnesota

Minnesota has been under the spotlight for years for Medicaid fraud, including a massive $300 million pandemic fraud case involving the nonprofit Feeding Our Future. Prosecutors said it was the country’s largest COVID-19-related fraud scam and that defendants exploited a state-run, federally funded program intended to provide food for children.

In 2022, during President Joe Biden’s administration, 47 people were charged. The number of defendants has grown to 78 throughout the ongoing investigation.

So far, 57 people have been convicted, either because they pleaded guilty or lost at trial.

Most of the defendants are of Somali descent.

Numerous other fraud cases are being investigated, including new allegations focused on child care centers.

Crackdown targeting Somalis

Trump’s immigration enforcement in Minnesota has focused on the Somali community in the Minneapolis-St. Paul area, which is the largest in the country.

Trump labeled Minnesota Somalis as “garbage” and said he didn’t want them in the U.S.

About 84,000 of the 260,000 Somalis in the U.S. live in the Minneapolis-St. Paul area. The overwhelming majority are U.S. citizens. Almost 58% were born in the U.S and 87% of the foreign-born are naturalized citizens.

Among those running schemes to get funds for child nutrition, housing services and autism programs, 82 of the 92 defendants are Somali Americans, according to the U.S. Attorney’s Office for Minnesota.

Republicans have tried to blame Walz

Minnesota Gov. Tim Walz has stated fraud will not be tolerated, asserting his administration will continue working with federal partners to root out fraud and apprehend offenders. The fraud issue may heavily influence the 2026 gubernatorial race as Walz seeks a third term.

Walz indicated that an audit expected to conclude by late January should illuminate the extent of the fraud, admitting that the $1 billion estimate could indeed be accurate. He emphasized that his administration is taking decisive action to prevent further fraud, defending his strategies thus far.

Democratic U.S. Rep. Ilhan Omar, a prominent figure within Minnesota’s Somali American community, has urged people not to generalize the actions of a few individuals to an entire community.