Independent Journalist Who Exposed Minn. Daycare Fraud Teases: ‘More to Come’

Independent journalist Nick Shirley said Thursday that he plans to release a second installment of his reporting on alleged fraud involving Minnesota child care providers. Shirley’s first report, a 42-minute video published last week, examined day care centers that appeared inactive or closed despite receiving significant public funding.

The video has accumulated more than 134 million views on X, according to platform metrics, and prompted increased scrutiny from federal officials. The U.S. Department of Health and Human Services subsequently announced a freeze on child care payments to Minnesota while reviews are conducted.

As the video gained attention, several major news organizations, including CNN, PBS, and The New York Times, dismissed Shirley’s findings as a viral video rather than an investigative report. Journalist Stella Escobedo commented on X that response was “an indictment” on corporate mainstream media, which led Shirley to respond: “Just wait until I post part 2, they are going to go insane.”

Here is Shirley’s initial report:

Shirley has publicly criticized several media outlets over their coverage of his reporting.

Shirley took issue with a CBS News reporter whom he said attempted to minimize his findings. PBS described Shirley as a “right-wing influencer” and said he accused Minnesota day care centers of fraud “without proof.” The New York Times characterized his work as a “single viral video,” while NPR featured commentary from a University of Minnesota media law professor who suggested Shirley was promoting a particular narrative.

CNN has also faced criticism online over its coverage. According to Steve Malzberg, a contributing writer for NewsBusters, CNN programs alleged that Shirley had previously shared “anti-immigrant and anti-Muslim videos,” without providing specific examples.

The network’s coverage reached its peak on Tuesday night with a segment on “Anderson Cooper 360.” During this report, correspondent Whitney Wild questioned Shirley about his methods. Wild also mentioned on air that CNN had attempted to contact the daycare centers that Shirley visited, but with little success.

“Only one daycare facility answered and said they are a legitimate business,” Wild told viewers.

The segment faced heavy criticism on social media, with critics accusing CNN of examining Shirley more rigorously than the reported misuse of public funds.

Shirley responded on X, writing, “Mainstream media is more mad at me than they are at the FACT that billions of YOUR dollars are being used for fraudulent business.”

Minnesota officials have disputed the allegations raised in the video. Tikki Brown, commissioner of the Minnesota Department of Children, Youth and Families, said earlier this week that previous inspections of the child care centers highlighted by Shirley did not find evidence of fraud.

Brown added, however, that state regulators are taking the claims seriously and continuing to review the matter.

“We are aware of a video that’s being circulated that has gained local and national attention about childcare centers in Minnesota,” Brown said at a Monday news conference. “While we have questions about some of the methods that were used in the video, we do take the concerns that the video raises about fraud very seriously.”

A recent increase in the number of federal law enforcement officers operating in Minnesota followed the allegations of widespread fraud involving day care centers run mostly by Somali residents, according to officials familiar with the investigations.

DHS Secretary Kristi Noem and FBI Director Kash Patel announced last week that federal operations in Minnesota would be expanded.

The announcements followed the release of Shirley’s video, during which he alleged that day care centers operated by Somali residents in Minneapolis had committed up to $100 million in fraud.

Noem posted on social media that officers were “conducting a massive investigation on childcare and other rampant fraud.” Patel said the goal was to “dismantle large-scale fraud schemes exploiting federal programs.”