Minnesota fraud: Child care centers in viral video under investigation

Scrutiny over Minnesota fraud increases

Minnesota’s fraud scandal is back in the national spotlight centered around child care assistance programs after allegations of fraud throughout the state. FOX 9’s Soyoung Kim has the latest update.

(FOX 9) - The Minnesota Department of Children, Youth, and Families is clarifying both funds distributed through the Child Care Assistance Program (CCAP) and its current investigation status of child care centers throughout the state in the wake of a viral video promoting rampant fraud.

Minnesota child care fraud

What we know:

A now viral YouTube video purported to show several child care centers in Minneapolis that seemingly had no children in attendance at the time of filming.

According to the DCYF, the child care centers referenced in the online video received the following CCAP funding in fiscal year 2025: Super Kids Daycare Center ($471,787); Future Leaders Early Learning Center ($3.68 million); Quality Learning Centers ($1.9 million); Tayo Daycare ($1.09 million); Minnesota Child Care Center ($2.67 million); Mini Child Care Center ($1.6 million); Sweet Angel Child Care ($1.54 million); ABC Learning Center ($1.04) million; Minnesota Best Child Care Center ($3.4 million).

Another center shown in the video, the Mako Child Care Center, has been closed since 2022, the DYCF says.

Of the 10 centers that received federal funding, the DCYF says it currently has ongoing investigations at four of them.

Dig deeper:

On Dec. 19, DCYF says it was made aware that Quality Learning child care center intended to voluntarily close, a statement that DCYF Commissioner Tikki Brown referenced during a Dec. 29 press conference.

The child care center has become a focus of national attention due to its signage misspelling "learning" and "learing" – a fact that several detractors have noted as ironic given the establishment’s focus.

The closure announcement was not the result of any action taken by DCYF, the department says.

However, when licensing investigators visited the center on Dec. 29, the DYCF says officials at that point learned the facility had chosen to remain open.

In total, the DYCF says it currently has 55 open investigations involving providers receiving CCAP funding.

What they're saying:

"Investigating potential fraud, protecting taxpayer dollars, and ensuring access to quality, safe services for Minnesota families is an ongoing priority for the Minnesota Department of Children, Youth and Families," the department said in a statement on Friday.

Minnesota childcare funding frozen

The U.S. Department of Health and Human Services has announced it is freezing all federal childcare payments to Minnesota amid an ongoing fraud investigation focused on several day care centers.

Federal CCAP funding

Dig deeper:

The Child Care Assistance Program (CCAP) helps reduce the cost of child care, supporting access to affordable child care for 23,000 children and 12,000 working families across Minnesota on a monthly average.

Minnesota counties and two Tribal Nations provide child care assistance by processing family applications, verification and enrollment, and approving payments to providers.

In total, the federal-state partnership invested $306.6 million for Minnesota families in fiscal year 2024.

However, states must meet federal guidelines to receive these funds, and in the wake of fraud allegations, the Trump administration has instituted a funding freeze on their distribution.