The Billion-Dollar Ghost: Independent Investigation Into Minnesota Public Assistance Triggers National Outcry
ST. PAUL, MN — A 42-minute investigative documentary released this week by independent journalist Nick Shirley has ignited a firestorm of scrutiny across Minnesota, alleging a sprawling network of “ghost” daycare and healthcare providers that have collectively siphoned off over $100 million in taxpayer funds.
The film, titled “I Investigated Minnesota’s Billion Dollar Fraud Scandal,” has rapidly transitioned from a viral YouTube sensation to a central flashpoint in a burgeoning national debate over government oversight, pandemic-era spending, and political accountability.
The Investigation: Doors Locked, Signage Misspelled
The documentary follows Shirley and a local investigator, identified only as “David,” as they conduct unannounced site visits to more than 20 addresses across the Twin Cities. These locations are listed in state records as active participants in the Child Care Assistance Program (CCAP) and various Medicaid-funded healthcare initiatives.
What the team captured on film has shocked viewers:
- Inactive Facilities: Multiple storefronts and office suites, which records indicate serve dozens of children or patients, appeared locked and vacant during standard business hours.
- The “Quality Learing Center”: One of the most viral moments in the film features a daycare center that received approximately $1.9 million in 2025. The exterior signage prominently misspells the word “Learning,” and a neighbor interviewed on camera claims they have not seen a single child enter the building since 2017.
- Concentrated “Providers”: In St. Paul, the documentary highlights a single office building housing more than a dozen registered healthcare companies. Shirley alleges these “fly-by-night” operations exist primarily on paper to facilitate fraudulent billing.
“This could be the largest fraud scandal in U.S. history,” Shirley claims in the film, alleging that the facilities visited were paid over $110 million in a single year despite showing no visible evidence of operation.
Political Fallout and Federal Escalation
The documentary’s release coincides with a period of intense pressure on the administration of Governor Tim Walz. While the state has been grappling with the fallout of the Feeding Our Future scandal—which saw $240 million stolen from federal child nutrition programs—Shirley’s investigation suggests that the rot may extend far deeper into other social service sectors.
The reaction from Washington was immediate:
- House Oversight Committee: Chairman James Comer (R-KY) has expanded an existing investigation into Minnesota’s social services. Following the video’s release, Comer sent letters to seven state officials demanding testimony, calling the situation a “staggering, industrial-scale fraud.”
- Vice Presidential Commentary: Vice President JD Vance weighed in on social media, describing the allegations as a “microcosm” of systemic failures.
- Congressional Demands: Rep. Tom Emmer (R-MN) publicly challenged Governor Walz on X (formerly Twitter), questioning how millions in taxpayer dollars could be funneled to an education center unable to spell its own name correctly.
The State’s Response
Governor Walz and Attorney General Keith Ellison have dismissed the latest wave of criticism as a “coordinated political attack.” In a statement, a spokesperson for the Governor’s office maintained that the administration takes fraud seriously and has already implemented new oversight measures.
Walz has previously defended the state’s record, noting that federal “guardrails” were removed during the COVID-19 pandemic to ensure rapid distribution of aid. However, federal prosecutors have noted that Minnesota currently faces “significant fraud problems” across at least 14 different Medicaid programs, with potential losses reaching into the billions.
Why It Matters
The allegations raise fundamental questions about the stewardship of public funds. Public assistance programs are designed as a lifeline for Minnesota’s most vulnerable populations. If the claims in Shirley’s documentary are substantiated, they suggest a systemic failure in the state’s ability to verify that the services taxpayers are paying for are actually being delivered.
As of now, no criminal charges have been filed specifically against the providers featured in Shirley’s documentary, and the facilities have not had the opportunity to respond to the allegations in a legal setting. However, with the House Oversight Committee prioritizing this as a “top investigation” for 2026, the “Ghost Daycare” scandal is far from over.
