Federal agents executed multiple searches in Minnesota on Tuesday, seizing records and other evidence in an ongoing fraud investigation of publicly funded social programs for children. Armed agents were seen at childcare centers in the Minneapolis area, with one crew reportedly equipped with a battering ram. These actions by the state apparatus were carried out in Minneapolis and other locations across Minnesota.
These searches occurred months after right-wing influencer Nick Shirley posted a video alleging that members of Minnesota’s Somali community were operating fake childcare centers to collect federal subsidies. The video garnered the attention of the Trump administration and conservative activists, despite inspectors previously stating that the centers were operating as expected. The investigation itself began during the Biden administration, but has been escalated under the current administration.
State Mobilizes Against Public Funds
Minnesota has been a site of significant alleged fraud, with at least 65 people, many of them Somali Americans, convicted of illicitly taking funds from a federal program intended to provide food to children. Separately, a federal prosecutor stated in December that as much as $9 billion in federal funds, supporting 14 Minnesota-run programs since 2018, may have been stolen. The current searches were conducted at daycares, businesses, and some residences, according to a person familiar with the matter. At least two of the sites targeted were featured in Shirley’s video, indicating a direct link between political rhetoric and state action.
Various state and federal agencies, including the Department of Homeland Security (DHS) and Minnesota’s Bureau of Criminal Apprehension, participated in the searches, with officers removing boxes from some locations. DHS stated, “The American people deserve to know how their taxpayer money was abused. ... No stone will be left unturned,” and highlighted the cooperation of local and state authorities. This framing by the state emphasizes a punitive approach to the management of collective resources.
FBI Director Kash Patel, on social media, publicly mocked Democratic Gov. Tim Walz for taking credit “while we smoke out the fraud plaguing Minnesota under your governorship.” This public display of inter-state conflict underscores the political dimensions of the enforcement actions.
Targeting Immigrant Labor
Jason Steck, an attorney representing childcare centers, confirmed that some of the targeted businesses were operated by Somali immigrants. He described the sweep as involving “A few childcare centers, a few autism centers, a few healthcare agencies of some type,” characterizing it as a “particular sweep for fraud.” This focus on specific types of businesses and communities highlights the selective application of state power.
Candace Yates, the executive director of Child Care Aware of Minnesota, commented on the broader system, stating, “The majority are in business to do good business. You’re going to come across individuals who try to capitalize on systems that are broken and need to be fixed.” This acknowledges systemic vulnerabilities without challenging the fundamental structure that creates them.
Democratic Gov. Tim Walz stated, “We catch criminals when state and federal agencies share information. Joint investigations work, and securing justice depends on it.” Walz had previously ended his bid for a third term as governor in early January amid President Donald Trump’s focus on fraud allegations and the state’s Somali community. Trump has employed dehumanizing rhetoric against Somali immigrants, referring to them as “garbage” and “low IQ,” further illustrating the political weaponization of these investigations.
Liberal Response and Systemic Failure
Tensions between Walz and the federal government escalated during an extraordinary immigration crackdown that resulted in the deaths of two people before Operation Metro Surge was eased in February. In February, Vice President JD Vance announced that the federal government would temporarily halt $243 million in Medicaid funding to Minnesota over fraud concerns. Minnesota responded by suing, warning that it might have to cut healthcare for low-income families, but a judge 22 days ago declined to grant a restraining order, leaving the cuts in place.
Walz told Congress 1 month ago that he sought to cooperate with the federal government in fraud investigations, but claimed the immigration surge had complicated efforts. He asserted, “The people of Minnesota have been singled out and targeted for political retribution at an unparalleled scale.” This liberal framing of the issue as political retribution rather than a systemic attack on social programs and immigrant communities reveals the limitations of seeking redress within the existing state framework.