Empty Minnesota Daycares Collect Millions Despite No Children

In the heart of Minneapolis, a series of child care centers stand quiet and unoccupied, yet they have reportedly drawn millions in public funding through Minnesota’s Child Care Assistance Program. This situation came to light through an investigation by independent journalist Nick Shirley, whose recent video documentation has ignited discussions about potential mismanagement and calls for greater oversight from state officials.

Shirley’s December 26, 2025, video tour focused on facilities such as the Quality Learning Center, which holds a license for up to 99 children but appeared entirely deserted during his visit. Accompanied by a whistleblower, he examined public records for 20 similar centers, calculating that they collectively received approximately $110 million in assistance funds over recent years, despite signs of minimal activity, including empty rooms and staff who avoided questions. One center, for instance, allegedly secured over $4 million while showing no evidence of children on site, prompting allegations of improper use of taxpayer dollars.

This revelation builds on a troubling pattern in Minnesota’s social service programs. The state has faced scrutiny for large-scale fraud in related initiatives, most notably the Feeding Our Future case, where federal prosecutors have charged dozens in a scheme that allegedly diverted $250 million intended for child nutrition during the pandemic. As of late 2025, more than 50 defendants have pleaded guilty, with ongoing trials and additional indictments, including six new charges announced on December 18 for related fraud in autism services. Federal authorities are seeking substantial restitution, such as $5.2 million from one key figure in the Feeding Our Future operation.

Concerns about the Child Care Assistance Program itself are not new. A whistleblower from Ramsey County, speaking in October 2025, claimed to have identified dozens of suspected fraud cases dating back 12 years, involving overpayments and fictitious services. An audit by the U.S. Department of Health and Human Services Office of Inspector General, released in May 2025, reviewed a sample of payments and found that Minnesota could improve verification processes to ensure providers comply with attendance requirements. The report highlighted 38 instances where documentation was insufficient, underscoring vulnerabilities in the system’s monitoring.

State legislators have responded with demands for action. U.S. Representative Tom Emmer has reportedly urged Governor Tim Walz to address the issue, describing the centers as part of a broader network of potentially fraudulent operations. Emmer’s office pointed to historical reports, including a 2018 investigation that alleged $100 million in child care welfare fraud, some of which may have involved international transfers. Governor Walz’s administration has not yet issued a public response to Shirley’s specific findings, though state officials have previously emphasized efforts to combat fraud through enhanced audits and partnerships with federal agencies.

The Minnesota Department of Human Services, which administers the Child Care Assistance Program, maintains guidelines aimed at supporting low-income families while requiring providers to document enrollment and services. However, critics argue that enforcement has been lax, contributing to what some describe as an environment ripe for exploitation. As of now, no criminal charges have stemmed directly from Shirley’s report, and mainstream media coverage remains limited, with local outlets like the Star Tribune providing overviews of the state’s ongoing fraud challenges.

This case highlights the delicate balance between providing essential services and safeguarding public funds. As investigations continue, stakeholders from across the political spectrum are pushing for reforms, including stricter licensing reviews and real-time attendance tracking, to prevent future discrepancies. The ultimate goal remains ensuring that resources reach the children and families who need them most, without undue burden on taxpayers.