CNN interviews Nick Shirley on his childcare fraud claims in Minnesota

Federal Funding Withheld from Minnesota Child Care Programs [00:00]

• The Trump administration has stopped all federal child care funding to Minnesota, impacting $185 million meant for 19,000 children.
• This drastic measure follows allegations of widespread fraud in the state's child care system, particularly in centers run by the Somali community.
• The Department of Health and Human Services (DHS) and the FBI are deploying resources to investigate these suspected fraud sites.
• The agency did not specify alternative plans for the families who will be affected by the funding cut.

"The agency says the state receives $185 million for 19,000 children. And now that money will be gone, and the agency did not specify any alternate plans for families who will be affected."

Viral Video and Creator's Background Spark Investigation [00:28]

• The federal action was directly prompted by a viral video posted by a MAGA content creator who claims to have uncovered extensive fraud.
• CNN is reviewing these claims but has not yet independently verified them.
• The deputy secretary of Health and Human Services is taking the allegations at face value, stating that "intrepid journalists have made shocking and credible allegations."
• The source of these allegations is a YouTuber named Nick Shirley, whose past social media activity includes anti-Muslim and anti-immigrant content.

"But the deputy secretary of Health and Human Services is taking the allegations at face value. Take a listen."

Claims of Fraudulent Daycares and Federal Response [01:37]

• Nick Shirley's viral video alleges tens of millions of dollars in fraud at Minneapolis daycare centers run by the Somali community, which was retweeted by Elon Musk and Vice President JD Vance.
• Shirley claims he attempted to visit daycares during normal operating hours and found locked doors and unanswered phones, which he interpreted as evidence of fraudulent operations.
• He asserts that these are not "real businesses" because they do not readily provide enrollment information.
• Federal law enforcement has been investigating fraud in Minnesota for several years, with Attorney General Pam Bondi and FBI Director Kash Patel mentioning dozens of indictments.

"The point is that blacked out doors, they can't give you any information. You call that number? No one answers."

Data on Previous Investigations and Convictions [03:03]

• Despite ongoing federal investigations, Shirley questions why his single-day investigation allegedly uncovered $100-110 million in fraud, more than previous efforts.
• He expresses 100% certainty in his claims, based on what he states he and others have observed.
• CNN correspondent Whitney Wilde reported reaching out to daycares featured in the video, with only one responding to claim they are legitimate.
• Minnesota Republicans have been raising alarms about fraud for years, with a commissioner of children previously stating a location was closed, yet children were seen there later.

"Why did I show up one day in Minnesota and go to all these daycares? No children. They're receiving millions of dollars. We uncovered nearly 100 million, $110 million in fraud in one day."

Political Context and Media Landscape [05:01]

• The virality of Shirley's video is partly attributed to Minnesota being a politically convenient target, linked to Governor Tim Walz and Ilhan Omar, who are perceived as adversaries by some.
• Previous reporting on widespread fraud in Minnesota from years prior also contributes to the public's willingness to believe current claims.
• Media outlets, including CNN, are approaching Shirley's reporting with caution, emphasizing the need for independent verification similar to earlier evaluations in 2022.
• The situation highlights how a YouTuber with a history of inflammatory content can generate significant federal attention based on scant evidence.

"The reason why I think Shirley's post has gone viral amongst some of the conservative community is because Minnesota is a politically convenient target, not just for the president, but for the party."

Broader Patterns of Fraud and Governance Challenges [06:31]

• Investigations into child care fraud in Minnesota have been ongoing for years, with 59 convictions secured under the Biden-Harris administration as of 2022.
• A white woman, Amy Locke, was identified as a ringleader in some of these schemes, indicating the fraud is not exclusively tied to one community.
• Many daycare centers have been shut down for operational non-compliance, with some of these closures predating the recent controversy.
• State governance has reportedly been hampered by the legislature, potentially impeding efforts to address the issue more comprehensively.

"And quite frankly, why there's a lot of attention on the Somali community. There's a white woman by the name of Amy Locke who was convicted, I think, on several different charges, who were considered the ringleader of this."

Taxpayer Dollars and Call for Justice [08:06]

• The current situation is framed as a politically convenient talking point for the administration, targeting the Somali community and Governor Walz.
• The discussion extends to historical patterns of fraud, including allegations against Trump University and presidential pardons for individuals facing fraud accusations.
• While acknowledging the need for accountability, the sentiment is that fraud itself is "colorblind" and should be addressed universally.
• The hope is for convictions and justice, especially given the need for essential child care services and the misuse of taxpayer money.

"And hopefully we can get some convictions here and get some justice because people need this money. People need help with daycare and no one should be scammed, especially taxpayers."