Rep. Tom Emmer of Minnesota, the House Majority Whip, has sent a formal letter to Minnesota Governor Tim Walz seeking information and action following allegations of large-scale fraud involving publicly funded daycare and healthcare centers operating in the state. The letter follows a wave of public attention generated by a viral investigation conducted by citizen journalist Nick Shirley, who reported discovering what he described as extensive misuse of taxpayer funds tied to multiple state and federally supported programs.
In a December 29 letter addressed to Governor Walz, Emmer wrote, “Amid the national disgrace you’ve inflicted upon Minnesota, I have become further appalled at the recent reports of a blatant, large-scale fraud scheme within Somali-run healthcare and daycare centers throughout the state.” He urged immediate action and added, “I pray you were not complicit in allowing these centers to survive.” Emmer’s letter frames the allegations as raising questions about oversight, enforcement, and accountability within Minnesota’s administration of public assistance programs.
Emmer referenced Shirley’s on-the-ground investigation in Minnesota, which documented multiple daycare and healthcare facilities that appeared inactive or minimally operational despite receiving substantial public funding. According to Emmer, Shirley characterized the findings as “potentially the largest fraud scandal in U.S. history,” alleging that billions of taxpayer dollars were funneled through daycare services, transportation providers, and healthcare operations. Emmer cited estimates claiming more than $9 billion in taxpayer funds were stolen during Governor Walz’s tenure, an amount he noted was comparable to Somalia’s gross domestic product.
Among the examples cited in the letter was Mako Childcare and Mini Childcare Center, which Emmer said received $5 million in funding for 120 children over a three-year period while operating from an empty building. Another nearby facility, ABC Learning Center, licensed for 40 children, was reported to have received $3 million in public funds. Emmer wrote, “These criminals did this hand in hand with your administration.”
Additional cases outlined in the letter included the Future Leaders Early Learning Center, which reportedly received more than $3 million in 2025 but allegedly failed to provide documentation requested by prospective parents, and the Quality Learning Center, which Shirley reported appeared inactive while having received an estimated $4 million over two years. Emmer also described allegations involving Somali-owned healthcare businesses operating out of shared addresses, including one Minneapolis building that Shirley said funneled between $50 million and $60 million in funding. Shirley reported being escorted out of that building when requesting rate information. Emmer responded to these claims by writing, “This is despicable.”
The congressman connected the allegations to Minnesota’s Child Care Assistance Program, noting that a 2018 audit concluded the state could not determine the full extent of fraud within the program. Emmer demanded a detailed accounting from the governor by January 9, 2026, and posed six specific questions, including what steps the administration has taken to eliminate fraud, how providers are audited before receiving funds, whether the centers named by Shirley had previously been investigated, why Creative Minds Daycare was allowed to reopen under a new name shortly after closure, whether licenses would be revoked and criminal investigations pursued, and whether Governor Walz planned to resign in light of the alleged scale of Medicaid fraud. Emmer wrote, “The amount of Minnesota taxpayer dollars stolen under your watch… equates to almost the entire GDP of Somalia,” adding, “It is clear you are either indifferent or incapable of doing your job.”
The letter concluded with a warning: “Governor Walz, the country is watching. Now, more than ever, I urge you to join him [President Trump] and hold those found guilty responsible, including yourself. America is no longer asking, but they are demanding you take action against these criminals. I expect your prompt response.” Emmer reiterated prior calls for accountability, license revocations, and investigations into the programs involved.
Beyond the state-level concerns, Emmer referenced investigative reports citing federal counterterrorism sources that allege some misappropriated funds were transferred to Somalia through the hawala network, with money reportedly reaching the Al-Qaeda-linked group Al-Shabaab. Emmer has previously called for criminal investigations into those alleged links, accusing Minnesota officials of “negligence or complete incompetence.” The U.S. Treasury Department has since launched an investigation, and the Department of Transportation has warned Minnesota that it could lose $30 million in federal highway funds due to related licensing failures, placing additional federal scrutiny on the state’s administration of public programs.
