December 31, 2025
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State re‑inspects 10 Minneapolis day cares after viral fraud video; providers deny wrongdoing

Minnesota officials re‑inspected 10 Minneapolis child‑care centers after a viral YouTube video alleging $110 million in fraud prompted state and federal attention, including references from DHS/HSI. DCYF says unannounced checks found children present and headcounts matching licenses with no findings of fraud so far, while providers such as Quality Learning Center and ABC Learning have denied wrongdoing; the agency is re‑reviewing the centers and investigating when and under what circumstances the footage was taken amid 55 open CCAP investigations statewide.

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📌 Key Facts

  • A viral YouTube video alleging $110 million in Minnesota day‑care fraud prompted state re‑inspections of 10 named Minneapolis centers and drew a federal response; DHS/HSI publicly referenced the video as part of a broader fraud crackdown.
  • DCYF Commissioner Tikki Brown said each of the 10 centers was inspected at least once in the past six months and are being re‑reviewed after the video; unannounced re‑inspections found children present and headcounts consistent with licensed capacity.
  • DCYF said the re‑inspections so far have not produced evidence to justify pausing Child Care Assistance Program (CCAP) payments to those centers, though the agency has 55 open CCAP investigations statewide.
  • Reports differ about closures: one account said two of the 10 centers were already closed (including a center reported as 'Quality Learning Center'), but DCYF later clarified that Quality Learning Center had notified the agency of a Dec. 19 closure and then decided to remain open; the state is trying to determine when and under what circumstances the video footage was taken.
  • Managers and owners of named centers have publicly denied wrongdoing: Quality Learning Center’s manager said the YouTuber filmed outside posted operating hours and called the fraud accusation 'completely false,' and ABC Learning’s owner/manager gave emotional on‑camera statements defending their center, saying it has operated for 5½ years 'without a problem.'

📊 Relevant Data

The poverty rate among Somali Minnesotans is 36.4%, compared to the statewide poverty rate of 9.3% in Minnesota.

Somali population - Cultural communities — Minnesota Compass

More than half (52%) of children in Somali immigrant homes in Minnesota live in poverty, compared to 8% of children in native-born households.

Somali Immigrants in Minnesota — Center for Immigration Studies

31.2% of Somali Minnesotans receive food stamps/SNAP benefits, compared to the statewide average of 8.5%.

Latest Data on Somali Minnesotans 2024 — Empowering Strategies

Over the last five years, fraud has taken root in pockets of Minnesota's Somali diaspora, with scores of individuals making false claims in social services programs.

How Fraud Swamped Minnesota’s Social Services System on Tim Walz’s Watch — The New York Times

📰 Sources (3)

Child care providers in Minneapolis under increased scrutiny respond
FOX 9 Minneapolis-St. Paul by Soyoung.Kim@fox.com (Soyoung Kim) December 31, 2025
New information:
  • Quality Learning Center’s manager publicly denied wrongdoing and said the YouTuber filmed outside posted operating hours, calling the fraud accusation 'completely false.'
  • DCYF initially told reporters Quality Learning Center had closed, but later corrected that the center had notified DCYF of closure on Dec. 19 and then decided to remain open.
  • ABC Learning’s owner and manager gave on‑camera, emotional statements defending their center, stressing it has operated for 5½ years 'without a problem' as far as they know.
  • DCYF Commissioner Tikki Brown confirmed each of the 10 centers in the video has been inspected at least once in the last six months and all are being re‑reviewed again in light of the video.
  • DCYF reiterated that it currently has 55 open investigations tied to the Child Care Assistance Program, but that past checks at the 10 highlighted centers have not produced hard evidence of fraud.
Video alleging day care fraud in MN draws federal response; state casts doubt on claims
Twincities by Alex Derosier December 29, 2025
New information:
  • Confirms that the viral YouTube video alleging $110M in day-care fraud has prompted not only state follow-up but a visible federal response, with DHS/HSI publicly referencing the video as part of a broader fraud crackdown.
  • Clarifies DCYF’s position that recent unannounced inspections at the 10 named centers found children present, headcounts aligned with licenses, and no basis so far for pausing payments, strengthening the state’s skepticism about the video’s fraud claims.
  • Adds emphasis that two of the 10 highlighted centers are already closed (including the misspelled 'Quality Learning Center'), and that the state is specifically trying to determine when and under what circumstances the video footage was shot.
Minnesota officials respond to day care fraud viral video: 'No findings of fraud'
FOX 9 Minneapolis-St. Paul by Howard.Thompson@fox.com (Howard Thompson) December 29, 2025