Emmer Demands Action on Alleged Fraud in Minnesota
House Majority Whip Tom Emmer from Minnesota has reached out to Governor Tim Walz, pressing for immediate answers and action regarding serious allegations of fraud tied to child care and medical centers run by Somali operators.
This letter follows a viral investigation led by citizen journalist Nick Shirley, who claims to have uncovered over $110 million in fraudulent activities in just a day.
In a letter dated December 29, Emmer harshly criticized what he termed a “national disgrace” in Minnesota’s government. He expressed his shock at reports revealing a substantial fraud scheme within a Somali-run medical facility and child care center. “Amidst the national disgrace inflicted on our state, I was dismayed by these blatant fraud reports,” he wrote.
Emmer urged Walz to act quickly, emphasizing, “I hope you are not complicit in allowing these centers to continue.” He pointed out that Shirley’s investigation focused on what he called potentially the largest fraud scandal in the U.S., which funneled billions of taxpayer dollars through Somali-owned businesses. Emmer suggested that more than $9 billion in taxpayer money may have been misappropriated under Walz’s administration—an amount comparable to Somalia’s entire GDP.
Shirley has documented instances of inactive child care centers receiving millions in federal and state funds. One highlighted case involved Mako Childcare and Mini Childcare Center, which allegedly secured $5 million to care for 120 children despite operating out of a vacant site. Another example included ABC Learning Center, licensed for only 40 children but reportedly receiving $3 million in funding.
“These criminals did this in partnership with your administration,” Emmer asserted in his letter.
Other specific examples included Future Leaders Early Learning Center, receiving over $3 million in 2025 without providing adequate documentation, and Quality Learning Center, which did not seem to have any activity despite receiving close to $4 million in the past two years.
Emmer also mentioned multiple health care businesses operating from the same location, with one allegedly moving between $50 million and $60 million into a single Minneapolis building. Shirley reported being escorted out when asking for pricing information there.
“This is despicable,” Emmer commented.
The congressman linked the fraud to the Child Care Assistance Program (CCAP), highlighting a 2018 audit that found Minnesota failed to assess the extent of fraud in that program. He called for a full accounting by January 9, 2026, and posed several pressing questions to Walz:
- What measures has your administration taken to eliminate CCAP fraud?
- How are child care and medical centers audited before receiving state funds?
- Have the centers identified in Shirley’s report been investigated before?
- Why was Creative Minds Daycare allowed to reopen with a new name just a day after it closed?
- Will the licenses of the implicated centers be revoked, and will a criminal investigation occur?
- Is there any intention from you to resign given the scale of these Medicaid fraud allegations?
“The amount of taxpayer money stolen under our watch is comparable to almost the entire GDP of Somalia,” Emmer emphasized. “It’s clear that you are either indifferent or incapable of fulfilling your duties.”
He concluded his letter by reiterating demands for accountability, license revocation, and an investigation. “Governor Walz, the nation is watching,” he cautioned. “Now more than ever, I urge you to take action. We will hold those found guilty accountable, including yourself.”
In earlier statements to media, Emmer had referred to Rep. Ilhan Omar as “one of the most duplicitous scammers,” citing her involvement in the “Feed Our Future” program, which he labeled as one of Somalia’s major scams during the pandemic.
Reports indicate that millions in misappropriated funds were sent to Somalia via hawala networks, where they may have reached al-Qaeda-affiliated groups. Emmer had previously criticized Walz and other Minnesota officials for what he characterized as negligence, calling for further criminal investigation.
Support for the investigation has also come from Education Secretary Linda McMahon and Vice President J.D. Vance, with Vance commenting on Shirley’s journalism as particularly insightful. Meanwhile, the Biden administration lifted Temporary Protected Status for Somali immigrants in Minnesota in response to the burgeoning fraud issues.
The U.S. Treasury is conducting its own investigation, and Minnesota has been warned it could lose $30 million in federal highway funds due to associated permit problems.
