A daycare center in Minnesota has responded to allegations of fraud made by YouTuber Nick Shirley in a video that has gained significant attention. In the video, which has amassed over 120 million views, Shirley claims that the Quality Learning Center and several other taxpayer-funded facilities are not providing childcare services despite receiving substantial subsidies.
Shirley’s investigation, published on December 15, 2023, accused nearly a dozen daycare centers of operating without offering any care, highlighting that the Quality Learning Center was licensed to care for 99 children. He alleged the center received $1.9 million in funding for 2025 and approximately $4 million in total from the Minnesota Child Care Assistance Program (CCAP). Critics have expressed concerns about potential fraud in Minnesota’s childcare system, an issue that has persisted for years.
In response to Shirley’s claims, the center’s owners’ son, Ali Ibrahim, stated that Shirley visited the facility outside of its operational hours, which are from 2 p.m. to 10 p.m. from Monday to Thursday. “Do you go to a coffee shop at 11 p.m. and say, ‘Hey, they’re not working?’” Ibrahim told The New York Post. Images obtained by the publication show children entering the center shortly after Shirley’s visit.
While several attempts to contact the Quality Learning Center by Newsweek were unsuccessful, the Minnesota Department of Children, Youth, and Families (DCYF) confirmed that it is investigating the allegations raised in Shirley’s video. The DCYF stated that it is “committed to doing everything we can” to maintain program integrity and investigate claims of fraud.
Ongoing Investigations and Community Impact
The allegations come amid broader concerns about fraud in Minnesota’s childcare programs. A federal prosecutor noted earlier in December that more than $9 billion in federal funds allocated to state-run programs since 2018 might have been misappropriated. Although Governor Tim Walz and other officials have disputed this figure, they acknowledge the seriousness of the issue.
The case has become culturally sensitive, particularly as many of the defendants are members of the Somali American community. Recent comments from former President Donald Trump have drawn criticism, with opponents arguing that the fraud cases are being used to unfairly target an entire demographic.
Investigations into fraud schemes have already resulted in multiple convictions. One notable case involved Feeding Our Future, a federally funded nonprofit accused of stealing over $250 million during the pandemic. These ongoing investigations highlight the scale of potential fraud within the state.
DCYF Commissioner Tikki Brown addressed the allegations during a news conference, stating that inspections of the daycare facilities highlighted in Shirley’s video did not reveal evidence of fraud. “We are aware of a video that’s being circulated that has gained local and national attention,” Brown remarked. She noted that while the video raises important questions, the department has been proactive in addressing concerns about fraud.
The DCYF confirmed that inspections of the facilities mentioned in Shirley’s video have occurred regularly over the past six months. Following the video’s release, the department plans to conduct additional visits to ensure compliance and address any outstanding issues.
Community Responses and Next Steps
In response to the viral video, Ibrahim expressed frustration over the way the situation was portrayed. “We have a specific sign on our door that says our days and our hours. [Shirley] came outside of those hours and then claimed, ‘Hey, they’re closed, and they’re still making money,’” he remarked to Fox News. He also mentioned that the misspelling on the center’s sign was a graphic designer’s error, promising a correction “by the end of this week.”
The DCYF reiterated its commitment to ensuring that every dollar from the Child Care Assistance Program is allocated correctly. “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 agency stated.
Looking ahead, investigations will not only be conducted by state agencies but also by federal entities, including the FBI and the Department of Homeland Security (DHS). DHS Secretary Kristi Noem has indicated that her department is intensifying its efforts to combat fraud in Minnesota, emphasizing the importance of accountability in childcare funding.
The situation surrounding the Quality Learning Center and similar facilities will remain under scrutiny as investigations proceed, reflecting broader concerns about fraud in Minnesota’s childcare system and its implications for the community.
