Federal Investigation Targets Childcare Fraud in Minneapolis

Tue Dec 30 2025 21:08:10 GMT+0200 (Eastern European Standard Time)

The Department of Homeland Security is investigating extensive fraud involving childcare and food programs, culminating in hundreds of indictments against Minnesota's Somali community. This follows years of exploitation of federal funds intended for child nutrition during the COVID-19 pandemic.

Federal authorities have intensified their investigation into significant fraud related to childcare and food programs in Minneapolis. Secretary Kristi Noem revealed the operation aimed to clamp down on a series of scams that defrauded taxpayers of millions of dollars intended for educational and nutritional support during the pandemic. With many involved being members of the Somali community, Minnesota Governor Tim Walz has pledged to work closely with federal partners to halt fraudulent activities.

Federal Investigation Targets Childcare Fraud in Minneapolis

MINNEAPOLIS (PulseWire) — The Department of Homeland Security (DHS) has launched a fraud investigation in Minneapolis, driven by revelations of extensive exploitation of federal childcare funds, as disclosed by Secretary Kristi Noem.

This investigation stems from a scheme that reportedly siphoned millions from a $300 million budget intended for child nutrition and support programs during the COVID-19 pandemic. A total of 57 defendants have already been convicted in Minnesota related to this fraud, amidst allegations that a substantial portion of approximately $18 billion in federal funding since 2018 may have been embezzled. Most defendants are reportedly members of the Somali American community, according to legal sources.

In response to the escalating situation, Governor Tim Walz emphasized that his administration will continue to collaborate with federal agencies to ensure accountability and prevent future fraud. He asserted, “Fraud will not be tolerated. We will work closely with our federal partners to root it out.”

DHS officials are intensifying their efforts, with Secretary Noem releasing a video on social media demonstrating agents conducting investigations at local businesses suspected of involvement in fraudulent activities. This initiative aims to dismantle ongoing fraud schemes that have exploited federal programs.

FBI Director Kash Patel, escalating the urgency of the situation, has stated that the prior arrests represent only the surface of a much larger fraud operation. His comments came amidst rising tensions between state and federal law enforcement regarding enforcement strategies in the Minneapolis-St. Paul area.

The investigative focus has been particularly pronounced on fraud cases involving child nutrition, housing services, and autism programs. The U.S. Attorney's Office for Minnesota has reported that 82 of 92 indicted defendants hail from the Somali American community, sparking discussions about the concentration of such legal actions within this demographic.

Walz's spokesperson, Claire Lancaster, further mentioned that the Governor’s office has actively sought legislative support to strengthen investigative measures against fraud, reinforcing that oversight has been intensified and audits have been commissioned for at-risk programs.

The DHS and the FBI are united in their commitment to ensuring that taxpayer dollars are safeguarded against fraudulent activities, with rigorous measures planned to bring those responsible to justice.