Minnesota’s taxpayers are on the hook for a jaw-dropping scandal that could be the biggest fraud in U.S. history.

House Majority Whip Rep. Tom Emmer (R-MN) has fired off a blistering letter to Governor Tim Walz (D), demanding accountability for allegations of over $9 billion in taxpayer funds siphoned through Somali-run daycare and healthcare operations, uncovered by citizen journalist Nick Shirley.

Shirley alleged that millions in state and federal aid a day vanished into ghost operations while real childcare needs went unmet, and the price tag has now reached $9 billion in fraud.

Uncovering a Massive Fraud Scheme

The story broke when Nick Shirley, a determined citizen journalist, exposed what he called a staggering fraud operation, documenting over $110 million misappropriated in just one day.

His investigation revealed daycare centers like Mako Childcare and Mini Childcare Center, which reportedly pocketed $5 million over three years despite operating out of empty buildings. ABC Learning Center, licensed for just 40 kids, somehow raked in $3 million in taxpayer cash.

Then there’s Future Leaders Early Learning Center, which snagged over $3 million this year while failing to provide basic paperwork to parents—hardly a beacon of trust.

Empty Buildings, Full Pockets

Quality Learning Center, complete with a misspelled sign reading “Quality Learing Center,” showed no signs of life yet allegedly received $4 million over two years, per Shirley’s estimates.

On the healthcare side, multiple Somali-owned businesses reportedly operated from the same Minneapolis address, with one funneling between $50 and $60 million through a single building. When Shirley sought basic rate information, he was promptly escorted out.

Emmer connected these schemes to the Child Care Assistance Program (CCAP), pointing to a 2018 audit that admitted the state couldn’t even gauge the full extent of fraud in the system.

Emmer’s Fiery Call for Accountability

In his letter sent on Dec. 29, 2025, Emmer didn’t hold back, declaring, “Amid the national disgrace you’ve inflicted upon Minnesota, I have become further appalled at the recent reports of a blatant, large-scale fraud scheme within Somali-run healthcare and daycare centers throughout the state.”

He added, “The amount of Minnesota taxpayer dollars stolen under your watch… equates to almost the entire GDP of Somalia.” That’s a gut punch of a comparison, highlighting a scale of mismanagement that demands not just answers but action.

Emmer has given Walz until Jan. 9, 2026, to provide a full accounting, posing six pointed questions about fraud prevention, audits, and whether Walz will step down over the alleged Medicaid fraud mess.

Broader Implications and Investigations

Adding fuel to the fire, investigative reports citing federal counterterrorism sources claim millions of the stolen funds were funneled to Somalia via the hawala network, with some allegedly reaching the Al-Qaeda-linked group Al-Shabaab. Emmer has already pushed for a criminal probe into these terror funding ties, accusing state officials of negligence.

Support for the investigation is growing, with Education Secretary Linda McMahon and Vice President J.D. Vance backing the effort, while President Trump recently ended Temporary Protected Status for Somali migrants in Minnesota following these revelations. Meanwhile, the U.S. Treasury Department is digging into the fraud claims, and the Department of Transportation has warned Minnesota of losing $30 million in highway funds over related licensing issues.