KSTP-TV’s Jay Kolls revisited two Minnesota daycare centers first reported in January 2025, finding extensive safety and record-keeping violations. The Quality Learning Center was cited for 95 violations, including missing records for 16 children, yet reportedly received nearly $8 million since 2019. A second site had 36 violations and collected about $11.5 million since 2018. DHS says it can end payments only under specific legal conditions, and the issue gained renewed attention after a viral video by independent journalist Nick Shirley.
Resurfaced Report: Minneapolis Daycare Centers Allegedly Collected Millions Despite Safety Violations
The Quality Learning Center in Minnesota was found at the center of an alleged childcare fraud scandal in the state.
KSTP-TV first flagged concerns about federally funded daycare centers in Minnesota in January 2025. A resurfaced segment from reporter Jay Kolls revisited two Minneapolis-area facilities that reportedly continued to receive government payments despite multiple safety and record-keeping violations.
What Reporters Found
At the Quality Learning Center, Kolls said the Minnesota Department of Human Services (DHS) documented 95 safety and health violations, including missing records for 16 children. Kolls reported visiting the site several times and noted he "did not see any children" during those visits, even though the center has been paid nearly $8 million in taxpayer funds since 2019.
"I went to the daycare's location several times, and only once did I see people there. But I did not see any children," Kolls said.
Kolls also inspected the Minnesota Childcare Center, describing it as located "at the end of [a] small hallway with a steel door, no windows and no visible security cameras." That facility reportedly had 36 violations yet collected about $11.5 million in public funds since 2018.
Independent journalist Nick Shirley went viral after visiting several inactive Minnesota daycare centers receiving millions in government funding.
Agency Statement
At the time, DHS said it can stop CCAP (Child Care Assistance Program) payments only under limited circumstances: when a provider intentionally submits false billing or attendance information; when a provider continues operating after suspension or revocation of a license; when there is a credible allegation of fraud; or when a provider refuses access to attendance records.
Public Reaction And Follow-Up
The story drew renewed national attention after independent journalist Nick Shirley published a 42-minute video visiting multiple locations that appeared inactive despite receiving millions in government payments. Minnesota state Representative Pam Altendorf shared the original KSTP report on social media and demanded answers about oversight and accountability.
Context: The reports raise questions about how public funds are monitored and when payments should be suspended. DHS and lawmakers say investigations and legal thresholds affect how and when payments can be halted.
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