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By Andrew Stanton
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A child care facility at the heart of Nick Shirley's viral video alleging fraud in Minnesota has a history of violations, according to the Minnesota Department of Human Services.
A Minnesota Department of Children, Youth, and Families (DCYF) spokesperson told Newsweek on Monday that the department learned late Monday afternoon that the facility in question, the Quality Learning Center, would be staying open after initially learning of plans to close on December 19.
The department’s goal is to work with centers to address violations by correcting deficiencies so children can be cared for in a safe environment, the spokesperson said. DCYF will suspend or revoke licenses when there are “serious concerns” about child safety, and violations are addressed using a “progressive sanction process that would result in payment withholds or disqualifications for funded programs.”
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Why It Matters
Prosecutors have alleged that fraud may cost Minnesota billions of dollars. The case has also become culturally fraught, as 82 of the 92 defendants charged are Somali Americans, according to the Associated Press.
As the allegations drew national news, Trump referred to the Somali-American community as “garbage.” Critics have said the Somali-American community as a whole should not bear consequences for the actions of only some individuals, and that the scandal has created a sense of fear within the community.
What To Know
Quality Learning Center, Inc. has drawn scrutiny following a viral video by influencer Nick Shirley, in which he traveled to child care centers accused of fraud to see if they were operating. The center had a sign outside that misspelled “Learning” as “Learing,” and nobody answered Shirley when he knocked on the door.
The facility’s initial effective date was listed as October 17, 2017, according to the Department of Human Services. It is licensed to hold up to 99 children and serves infants, toddlers, preschoolers and school-aged children.
Its first violations were during a licensing review on May 9, 2022, when it had more than 25 violations, ranging from the program not complying with first training or CPR requirements, the staff-to-child ratio not being maintained, not having a policy to prevent and respond to allergies and crib mattresses not meeting safety requirements.
The review also found that the program’s space was not clean and that hazardous objects were accessible to children.
More violations, including several repeated violations, continued to come up in subsequent conditional license reviews in August and December of that year, as well as in March 2023. A few of those violations were corrected on site, while correction documentation was submitted and approved for other violations.
Still, the facility faced myriad violations in 2023, 2024 and 2025.
In the most recent licensing review from June, the facility had 10 violations, according to the department.
Department of Homeland Security (DHS) Secretary Kristi Noem wrote on X on Monday that Homeland Security Investigations were investigating childcare centers for fraud in Minneapolis.
“Homeland Security Investigations @ICEGov are on the ground in Minneapolis right now conducting a massive investigation on childcare and other rampant fraud. More coming,” she wrote.
The White House on Monday also addressed concerns about fraud, writing in a post to X, “MASSIVE fraud in Minnesota is finally being exposed. Time for accountability.”
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What People Are Saying
The Minnesota DCYF wrote in a statement to Newsweek: “Fraud has no place in Minnesota’s public programs. Fraudulent actions hurt the families who need services and erode the public’s trust. Minnesota’s Department of Children, Youth, and Families has no tolerance for fraud, and we’re committed to doing everything we can to investigate allegations and quickly respond to issues. Our program integrity efforts are strong, and we know that fraudsters are always changing their tactics so we are always evolving our efforts.
We’re aware of the video circulating online that has raised concerns about several childcare centers in Minnesota. We take the concerns raised in this video very seriously. Each of the facilities mentioned in the video has been visited at least once in the last six months as part of our typical licensing process. Our staff are out in the community today to visit each of these sites again so that we can look into the concerns raised in the video.
We are committed to making sure that every dollar of the Child Care Assistance Program, and other programs, is going where it’s supposed to go and being used as intended. We will not stand for fraud being committed, and if any of the concerns raised in the video are found to be true we will take every action within our authority to address the issues.”
The office of Minnesota Governor Tim Walz, a Democrat, previously told Newsweek: “The Governor has worked for years to crack down on fraud and asked the state legislature for more authority to take aggressive action. He has strengthened oversight – including launching investigations into these specific facilities, one of which was already closed. He has hired an outside firm to audit payments to high-risk programs, shut down the Housing Stabilization Services program entirely, announced a new statewide program integrity director, and supported criminal prosecutions.”
FBI Director Kash Patel wrote on X: “The FBI is aware of recent social media reports in Minnesota. However, even before the public conversation escalated online, the FBI had surged personnel and investigative resources to Minnesota to dismantle large-scale fraud schemes exploiting federal programs. Fraud that steals from taxpayers and robs vulnerable children will remain a top FBI priority in Minnesota and nationwide. To date, the FBI dismantled a $250 million fraud scheme that stole federal food aid meant for vulnerable children during COVID. The investigation exposed sham vendors, shell companies, and large-scale money laundering tied to the Feeding Our Future network.”
What Happens Next
Patel has said the FBI will continue investigating the alleged fraud. Meanwhile, the next renewal date for Quality Learning Center is set for December 31, 2026.
Update 12/29/25, 2:34 p.m. ET: This article was updated with additional information.
Update 12/29/25, 6:04 p.m. ET: This article was updated with comment from Minnesota's DCYF.
Update 12/29/25, 6:14 p.m. ET: This article was updated with a clarification from Minnesota's DCYF about the daycare facility in question.
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