Federal agents carried out multiple searches across Minnesota on Tuesday as part of an ongoing fraud investigation involving publicly funded social programs for children, authorities said.
Officials did not publicly disclose details about what crimes were being investigated, though the raids were visible in the Minneapolis area at childcare centers. KSTP-TV reported that agents arrived at at least one site with a battering ram, and other outlets saw armed agents at day care-related locations. Separately, a person familiar with the investigation told The Associated Press on the condition of anonymity because they were not authorized to discuss it publicly that the searches included day cares, businesses, and some residences, and that officers from Minnesota’s Bureau of Criminal Apprehension were removing boxes from some locations.
The investigation has also been linked in public discussion to a viral claim made months earlier by right-wing influencer Nick Shirley, who posted a video saying members of Minnesota’s Somali community were operating fake childcare centers to collect federal subsidies. The video drew attention from the Trump administration and conservative activists, but inspectors previously said the childcare centers were operating as expected.
Minnesota has faced repeated fraud scrutiny in federal child-related programs. The Associated Press reported that at least 65 people, many of them Somali Americans, have been convicted of ripping off a federal program meant to provide food to children. The state has also been part of a broader federal dispute over alleged misuse of funds for multiple Minnesota-run programs: in December, a federal prosecutor said as much as $9 billion in federal funds supporting 14 programs since 2018 may have been stolen.
In response to the Tuesday raids, Democratic Gov. Tim Walz welcomed the actions and pointed to cooperation between state and federal investigators. Minnesota’s child welfare agency said it shared key information with law enforcement to “hold bad actors accountable,” and Walz said, “We catch criminals when state and federal agencies share information. Joint investigations work, and securing justice depends on it.”
Federal agencies said the searches are aimed at uncovering fraud. U.S. Department of Homeland Security spokespersons said the American public “deserve to know how their taxpayer money was abused,” adding that “No stone will be left unturned,” and the department cited cooperation from local and state authorities.
On social media, FBI Director Kash Patel mocked Walz for taking credit, writing that federal agents were “smoke out[ing] the fraud plaguing Minnesota under your governorship.” Attorneys for childcare providers disputed the breadth implied by the raids. Jason Steck, a lawyer representing childcare centers, said some targeted businesses were operated by Somali immigrants and that they were not his clients; he described the action as appearing to be “a particular sweep for fraud.”
Candace Yates, executive director of Child Care Aware of Minnesota, said publicity from the investigation was “unflattering” because she argued many providers are operating in the interest of children. She said “the majority are in business to do good business” but also acknowledged there are “individuals who try to capitalize on systems that are broken and need to be fixed.”
Walz, whose political standing has been under pressure tied to both the administration’s fraud focus and the state’s Somali community, ended his bid for a third term in early January amid what the AP described as President Donald Trump’s persistent fraud allegations. The raids came amid broader state-federal tensions following an immigration crackdown that, according to the report, led to the deaths of two people before Operation Metro Surge was eased in February.
In February, Vice President JD Vance said the government would temporarily halt $243 million in Medicaid funding to Minnesota over fraud concerns, and Minnesota sued, warning it may have to cut healthcare for low-income families. A judge on April 6 declined to grant a restraining order. Walz told Congress in March that he wanted to work with federal authorities on fraud investigations, but he said an immigration surge made it harder.
Tuesday’s searches also intersected with Walz’s political messaging as he delivered his final State of the State address. He told lawmakers he promised to focus on fraud after dropping out of the governor’s race in January, saying “I’ve said the buck stops with me,” and adding that he believed it was being used politically. Republican leaders criticized him after the speech, with House GOP Floor Leader Harry Niska saying Walz pointed fingers instead of taking adequate responsibility for fraud on his watch.