Nick Shirley testifies before Senate committee on Minnesota Medicaid fraud tied to Walz, Ilhan Omar
Independent journalist Nick Shirley brought his investigation into alleged billions in Minnesota social services fraud to a Senate hearing, where nearly every Democrat on the committee refused to show up.
Shirley, whose viral undercover videos documented what appeared to be empty or nonoperational child care centers collecting millions in public funds, testified before the Senate Homeland Security and Governmental Affairs Committee about what he described as systematic Medicaid and social services fraud in Minnesota. His appearance before the committee marks at least the second time Congress has called on the journalist to detail his findings, following earlier testimony before a House Judiciary subcommittee.
The hearing put a sharp spotlight on two Minnesota political figures named repeatedly in connection with the scandal: former governor Tim Walz and Rep. Ilhan Omar. Both have faced mounting questions about what they knew, what they failed to stop, and how closely their political orbits overlap with individuals and organizations now under federal scrutiny for fraud.
Democrats walked out rather than hear the testimony
Fox News reported that nearly all Democratic members of the Senate Homeland Security Committee were absent from the hearing, titled "Exposing Fraud in America." The boycott left Republicans to question witnesses largely without pushback from across the aisle.
Shirley and investigative journalist James O'Keefe both testified. Shirley's work focused on fraudulent Somali-owned daycare centers in Minneapolis, operations that appeared to exist on paper but showed little sign of serving actual children. That reporting later led to criminal charges.
Sen. Marsha Blackburn addressed the scope of the problem during the hearing:
"You look at these areas that have just basically turned a blind eye and have let people move forward with fraud."
Shirley framed the issue in plain terms, telling the committee that the fraud wasn't abstract:
"When we talk about fraud, we are talking about money stolen from hardworking, law-abiding, taxpaying citizens."
His investigation earned him an invitation to the State of the Union address, a signal of the political weight the story now carries in Washington.
$9 billion in suspected fraud, and Minnesota still hasn't answered
The Senate hearing is only one front in a widening federal push for accountability. Sen. Ron Johnson, chairman of the Senate's Permanent Subcommittee on Investigations, has demanded oversight records from Minnesota's Department of Human Services and from Walz himself. The New York Post reported that Johnson set a February 17 deadline for compliance and threatened to use subpoena power if the state failed to produce documents.
The estimated damage is staggering. Social services scammers may have stolen approximately $9 billion from Minnesota taxpayers, according to Johnson's investigation. The fraud spans childcare assistance programs, Medicaid, and federal nutrition programs, a web of public funding that was exploited across dozens of organizations.
More than 70 Minnesota daycare centers received at least $1 million each in state payments in 2024 alone and are now under scrutiny. Johnson did not hold back in his letter to state officials:
"Given the pervasiveness of fraud in your state, it is past time for Minnesota to answer for its apparent failure to safeguard taxpayer dollars."
He added: "This is just the tip of the iceberg."
The fraud developments in Minnesota have continued to pile up. The daycare organization that received the highest government funding has pleaded guilty to fraud. Federal authorities also carried out what has been described as the largest "autism fraud" bust in history, all within the same state.
Vice President JD Vance has already referred Walz and Minnesota's attorney general to the Justice Department for a criminal fraud referral, adding executive branch pressure to the legislative investigations now underway.
A fraud suspect vanished after posting bond
One case illustrates how the system's failures compound. Abdirashid Ismail Said, charged with 10 counts including perjury, racketeering, and aiding and abetting theft by swindle, failed to appear in Hennepin County court and forfeited a $150,000 bond. Breitbart reported that Said had a prior 2021 conviction for theft by swindle and had been ordered not to work with companies accepting Medicaid reimbursements, yet allegedly continued running the same kind of scheme.
Said avoided having to surrender his passport by paying the unconditional bond amount. The conditional bond, which would have required passport surrender, was set at just $50,000. He chose the higher payment, kept his travel documents, and disappeared.
The Trump administration has responded to the Minnesota fraud pattern with direct action. USDA Secretary Brooke Rollins cut agency grants to the state, and U.S. Citizenship and Immigration Services launched investigations into fraud tied to the Somali community in Minnesota.
Omar's own connections to individuals and organizations caught up in Minnesota's fraud scandals have drawn sustained scrutiny. Her sister registered a consulting firm at the same address used by convicted Feeding Our Future fraudsters, one of the largest pandemic-era fraud cases in the country.
Shirley's reporting forced Congress to pay attention
Shirley's path from independent journalist to congressional witness began with undercover video. He visited Somali-run child care centers in Minneapolis that were collecting millions in public funding and found facilities that appeared empty or nonoperational. The Washington Examiner reported on his earlier testimony before the House Judiciary Subcommittee on Crime and Federal Government Surveillance, at a hearing titled "When Public Funds Are Abused: Addressing Fraud and the Theft of Taxpayer Dollars."
His work has now been cited in multiple congressional proceedings and has contributed to a broader federal reckoning with how Minnesota managed, or failed to manage, billions in public money.
Omar has also faced questions about her congressional office itself, which she operates inside a Somali center that received redirected donations from convicted fraudsters. That arrangement has raised questions about how closely her political infrastructure overlaps with the organizations now under investigation.
The ET Online report on Shirley's Senate testimony noted the journalist's framing of the scandal as a contest between taxpayers and those who exploited public programs meant to serve vulnerable families.
Meanwhile, legal trouble has extended to Omar's own family. Minneapolis police raided the home of Omar's son, seizing guns and ammunition, a separate matter, but one that adds to the growing list of law enforcement actions touching the congresswoman's inner circle.
Minnesota's leadership chose not to look
The pattern that emerges from the combined congressional investigations, criminal cases, and journalistic work is not one of a single bad actor. It is a pattern of systemic failure, programs designed to help children and families turned into pipelines for fraud, with state officials slow to intervene and political leaders reluctant to ask hard questions about who was benefiting.
Walz, who oversaw Minnesota's executive branch during the period when much of the alleged fraud occurred, has yet to produce the records Johnson demanded. Omar, whose political network repeatedly intersects with individuals and organizations implicated in fraud, has not addressed Shirley's testimony publicly based on available reporting.
Democrats on the Senate committee had a chance to hear the evidence, challenge the witnesses, and defend their own. They chose empty chairs instead.
When billions in taxpayer money vanish and the people responsible for oversight refuse even to sit in the room where the questions are being asked, the public is entitled to draw its own conclusions about who is protecting whom.

