YouTuber Nick Shirley ignited a national backlash after releasing a viral investigation alleging that up to $8 billion in taxpayer funds may have been lost to widespread welfare fraud in Minnesota.
He made claims accusing state agencies of overlooking clear red flags while vast sums were allegedly funneled through childcare, transportation, and healthcare programs that largely existed only on paper.
In the video, Nick questions officers about where the money is actually going. At one point, Shirley asserts, “This could be the largest fraud scandal in US history,” claiming that state and federal funds were diverted to businesses with little or no sign of real operations.
Much of the video centers on childcare facilities that were licensed to look after dozens of children but appeared deserted during multiple visits in the middle of the day.
Shirley, along with a local investigator identified only as David, who says his doubts built up after years of driving past the same sites. “I would pass these childcare centers during the day and never see any kids,” he explains. “That’s when I started wondering—where are these children?”
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Meanwhile, the US Department of Labor reacted to the allegations and said, “we got bigger fish to fry.”
Tesla CEO Elon Musk reacted to the video and said, “prosecute Governor Tim Walz.”
In another post, Musk said, “The radical left has been using fraudulent government programs for a long time to import and retain vast numbers of illegal (and legal, in some cases) immigrants to win elections and turn America into a single-party state, destroying any real democracy. The more you look at it, the more you will be horrified at what your tax money is doing and the fact that, if this is not reversed, your vote will mean nothing.
The most obvious case example is the Somali voting bloc in Minnesota, a state that historically had zero Somalis, electing Ilhan Omar to the US Congress. The same is happening in Europe, UK, Canada, Australia and New Zealand, Musk added.
According to Shirley, some of these centers received hundreds of thousands of pounds each year—and in some cases millions—despite showing no clear evidence that they were operating.
While standing outside a building in Minneapolis, he claims, “Between these two childcare centers alone, they’re bringing in around £2.4 million ($3 million) a year, and there are no children.” The video shows locked entrances, dark windows, and signage advertising extended hours, yet no visible activity inside.
Trump official pulls $5.5 million in SBA funds from Minnesota
The Trump administration is suspending $5.5 million a year in funding to Minnesota following allegations that individuals and businesses in the state misused government loan programs, according to a statement posted on social media by the US Small Business Administration, Bloomberg reported.
The decision is part of a broader pattern of the federal government withholding funds from Democrat-led states and cities. It also comes as Republicans intensify investigations into alleged fraud in Minnesota, including claims involving organizations that received emergency loans during the COVID-19 pandemic.
(With inputs from agencies)
