Federal authorities launched a sweeping crackdown Tuesday as the Federal Bureau of Investigation executed search warrants at nearly two dozen childcare centers across Minneapolis, targeting what officials describe as a growing web of fraud schemes in the Twin Cities.
Law enforcement teams carried out 22 coordinated raids early in the day, with assistance from federal, state, and local agencies. The U.S. Department of Justice confirmed the operation is part of an ongoing investigation into alleged misuse of government funds tied to childcare and social service programs.
Investigators have been examining irregularities involving state-funded daycare facilities, some of which appeared to exist largely on paper. Scrutiny intensified after reporting by independent journalist Nick Shirley highlighted questionable operations, including empty buildings listed as active childcare centers receiving taxpayer support.
Minnesota Governor Tim Walz said state agencies had previously flagged suspicious activity, asserting the raids were the result of internal oversight working as intended. However, Kash Patel pushed back, stating the investigation and warrant execution were led at the federal level, underscoring tensions over credit for the operation.
The crackdown comes amid broader concerns about fraud in Minnesota’s public assistance programs. Federal prosecutors have already brought charges in multiple cases, including allegations of millions of dollars siphoned from programs designed to assist vulnerable families. In one case, authorities accused a suspect of orchestrating a $14 million scheme involving falsified autism diagnoses to secure government payments.
President Donald Trump previously pledged to intensify efforts to combat fraud nationwide, signaling a tougher federal posture that now appears to be taking shape in Minnesota.
Officials have also raised alarms about potential international implications, with reports suggesting some illicit funds may have been transferred overseas, including to groups with extremist ties.
Authorities say the investigation remains ongoing, with additional charges possible as evidence is reviewed.
