Minnesota Daycare Linked to $4 Million in State Funds Raises Questions Amid Broader Fraud Probe
Rep. Tom Emmer is demanding answers from Minnesota Governor Tim Walz regarding a daycare facility tied to approximately $4 million in state funds, in the context of a wider fraud investigation.
Video footage reveals a daycare on Nicollet Avenue labeled "Quality Learing Center" with a misspelled sign and no visible children or activity inside.
The center reportedly received about $1.9 million in Child Care Assistance Program (CCAP) funds in 2025, with total disbursements around $4 million. Department of Human Services (DHS) records list 99 children enrolled, and the facility's license remains valid through the end of 2026.
This incident is part of a broader fraud scandal in Minnesota involving billions in federal social services funds, with suspected fraud potentially exceeding $1 billion. Programs implicated include CCAP and Feeding Our Future, and some reports allege portions of these funds reached the Somali terror group Al-Shabab.
U.S. Attorney Joseph Thompson has stated that CCAP fraud could exceed $1 billion. The Treasury Department is investigating, with Secretary Scott Bessent publicly commenting on the matter.
The daycare has accumulated 95 violations noted by DHS from 2019 to 2023, including hazardous materials found near children and missing records for more than a dozen listed children.
News outlets have sought comments from Governor Walz and Attorney General Keith Ellison. Attempts to contact the daycare via a phone number listed in state documents were unsuccessful.
