CRBC News
Politics

Nick Shirley Accuses Gov. Tim Walz Of 'Deflecting' After Viral Daycare Fraud Probe Sparks Federal Action

Nick Shirley Accuses Gov. Tim Walz Of 'Deflecting' After Viral Daycare Fraud Probe Sparks Federal Action
Democratic Minnesota Governor Tim Walz announced he would not seek re-election at the Minnesota State Capitol in St. Paul, Minn., Jan. 5, 2026.

Independent journalist Nick Shirley says Minnesota Gov. Tim Walz attacked his reputation rather than addressing allegations in a viral investigation into alleged daycare fraud. Shirley's 42-minute video has more than 138 million views on X and prompted federal probes, including an HHS freeze on childcare payments in Minnesota. Walz announced he will not seek reelection but will remain in office; Shirley celebrated the announcement and will release a full interview on OutKick's new podcast.

Independent journalist Nick Shirley pushed back against Minnesota Governor Tim Walz this week, accusing the governor of deflecting from fraud allegations after publicly criticizing Shirley's reporting.

What Shirley Says

In a preview for the debut episode of OutKick's The Riley Gaines Show, Shirley said Walz had attacked his character rather than disputing the substance of the reporting. Shirley said Walz called him 'far right,' 'a delusional conspiracy theorist' and 'a White supremacist' but, according to Shirley, offered no denial of the underlying allegations.

'Because when you're speaking facts, these people can't come after you. And, so, when I was just speaking the facts about — fraud is fraud,' Shirley said in the preview. 'Eighty-nine percent of the population committing the fraud is Somalian. That does not make me a racist. Dollars have no race to it. It's just a pure fact that money's being stolen from Republicans and Democrats.'

The Investigation

Shirley first drew national attention with a 42-minute video that examined Minnesota daycare centers that allegedly appeared inactive despite receiving millions in government dollars. The video went viral on X, garnering more than 138 million views on that platform, and prompted federal scrutiny.

Federal officials opened probes after the reporting, and the U.S. Department of Health and Human Services temporarily froze childcare payments in Minnesota while investigators review the allegations.

Walz's Response And Political Fallout

Walz has publicly criticized Shirley. On Monday, Walz announced he will not seek a third term as governor, saying he wants to focus on serving Minnesotans as the fraud probe continues; he also said he will not resign. Shirley celebrated the decision on X, posting that he had 'ended Tim Walz.'

Reactions And Next Steps

Shirley told Gaines he has been targeted by what he called 'leftists' since the reporting went viral and said he hoped officials would unite to crack down on fraud rather than attack the messenger. The full interview with Riley Gaines is scheduled to be released on major podcast platforms and additional clips are expected on Gaines' YouTube channel.

Note: This article summarizes claims and reactions tied to an ongoing investigation. Some allegations remain under review by federal authorities.

Help us improve.

Related Articles

Trending