Minnesota Governor Tim Walz defended his administration’s “aggressive” anti-fraud efforts after a viral 43-minute YouTube investigation alleging large-scale diversion of state-funded aid. Walz’s office says it has launched targeted probes, hired an outside auditor, closed the Housing Stabilization Services program, appointed a statewide program integrity director and backed prosecutions. Federal authorities have increased resources for inquiries that reportedly estimate up to $9 billion of $18 billion in federal aid since 2018 may have been diverted; media reports say dozens have been charged and multiple convictions secured.
Tim Walz Defends 'Aggressive' Anti-Fraud Record After Viral Minnesota Probe Triggers Federal Scrutiny
Minnesota Governor Tim Walz on Monday defended his administration’s “aggressive” approach to combating fraud as he responds to a viral online investigation alleging large-scale misuse of state-funded aid programs.
The 43-minute video by conservative YouTuber Nick Shirley drew more than 100 million views in a weekend and prompted renewed scrutiny of childcare and learning centers across Minneapolis. The footage showed multiple sites that appeared closed despite official records listing them as operating, while other locations refused entry to the reporter.
Walz’s response
Walz’s office issued a statement saying the governor has long pushed for stronger tools to fight fraud and has stepped up oversight in recent months. The statement highlighted actions taken by the administration, including hiring an outside firm to audit payments to high-risk programs, closing the Housing Stabilization Services program, announcing a statewide program integrity director, launching targeted investigations into the facilities featured in the video, and supporting criminal prosecutions where appropriate.
Federal involvement
Federal authorities announced an increase in resources to support investigations in Minnesota as part of a broader effort to address alleged large-scale fraud exploiting federal programs. Federal investigators reportedly estimate that as much as $9 billion — roughly half of the $18 billion in federal funds granted to Minnesota since 2018 — may have been diverted through fraudulent operations. Media reports say 86 people have been charged and 59 convictions secured so far in related cases.
Community impact and next steps
Many of those charged in the probe are reported to be members of Minnesota’s Somali community; local and federal officials emphasize that investigations focus on individual wrongdoing and criminal activity rather than community identity. Authorities have warned that current arrests and findings could represent only the beginning of a larger inquiry.
“We are committed to strengthening oversight and holding accountable anyone who abuses public funds,” the governor’s office said.
As investigations continue, Minnesota officials face political pressure to demonstrate both swift action and improved program safeguards to prevent future abuse of public aid.
