
Minnesota Governor Tim Walz is facing renewed scrutiny after resurfaced footage from last year’s vice presidential debate showed him touting efforts to make it easier to enter the child care business, comments that have gained attention amid expanding allegations of large-scale fraud tied to child care funding in the state.
During the debate with then–Vice President J.D. Vance, Walz pointed to Minnesota as a model for lowering barriers to participation in the child care sector while advocating for a national paid family and medical leave program.
“We have to make it easier for folks to be able to get into [the child care] business and then to make sure that folks are able to pay for that. We were able to do it in Minnesota,” Walz said on stage.
One post shared on X alongside the clip read, “Yes Tim, you sure did make it easy for people to open childcare businesses. They don’t even need to provide childcare to get paid.”
During the VP debate last year Tim Walz bragged about making it easier for people to get into the childcare business.
Walz: “We have to make it easier for folks to be able to get into that business and then to make sure that folks are able to pay for that. We were able to do it… pic.twitter.com/hXGun6e6fe
— MAZE (@mazemoore) December 28, 2025
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The clip resurfaced after a video published by independent journalist Nick Shirley went viral online.
Shirley’s reporting focused on alleged fraud involving Minnesota child care centers, many of which were accused of receiving millions of dollars in state aid despite appearing to provide little or no actual child care services.
In his reporting, Shirley documented visits to multiple child care facilities across Minnesota that appeared to be closed or inactive while still receiving significant public funding.
Wild because 80% of Somalian households already receive welfare in Minnesota pic.twitter.com/aBDjldSctg
— Arthur MacWaters (@ArthurMacwaters) December 27, 2025
According to records cited in the video, some centers had their doors shut despite collecting millions of dollars in aid over several years.
One facility featured in the video reportedly received $4 million in taxpayer funds despite having a misspelled sign and no children present.
4 million dollars of hard earned tax dollars going to and an education center that can’t even spell learning correctly.
Care to explain this one, @tim_walz? https://t.co/mGhS5IP4km
— Tom Emmer (@tomemmer) December 26, 2025
The video drew a response from FBI Director Kash Patel, who said the allegations extended beyond isolated cases.
Patel stated that the situation was “just the tip of a very large iceberg” and warned that convicted Somali scammers could face denaturalization and deportation.
CASE UPDATE: MINNESOTA FRAUD SCHEME
The FBI is aware of recent social media reports in Minnesota. However, even before the public conversation escalated online, the FBI had surged personnel and investigative resources to Minnesota to dismantle large-scale fraud schemes…
— FBI Director Kash Patel (@FBIDirectorKash) December 28, 2025
As the debate footage circulated, critics on social media linked Walz’s comments to the alleged failures in oversight.
Another post stated, “Tim Walz was saying the quiet part out loud… If we only knew then what we know now.”
During his terrible debate against VP Vance, Tim Walz was saying the quiet part out loud.
How easy it was to start a childcare business.
If we only knew then what we know now.pic.twitter.com/6lYms8qRp3
— AmericanPapaBear™ (@AmericaPapaBear) December 29, 2025
According to available records and prior investigations, allegations of fraud tied to Minnesota’s child care system are not new.
The alleged schemes date back to at least 2015, when certain day care centers were accused of overcharging Minnesota’s Child Care Assistance Program.
That program provides subsidies to help low-income families pay for child care.
In more recent years, authorities have also examined other alleged fraud schemes involving Medicaid-funded disability programs.
One such program includes housing assistance designed to help seniors and individuals with disabilities locate and move into housing. Investigators have alleged that some operators exploited these programs for financial gain.
Federal authorities have estimated that the total scope of the suspected fraud across multiple programs in Minnesota could reach as much as $9 billion.
Walz addressed fraud concerns during a press conference in November, before the full scale of the alleged abuse became widely known.
At the time, he acknowledged the seriousness of the issue and its broader implications for public confidence.
The scandal “undermines trust in government” and “undermines programs that are absolutely critical in improving quality of life,” Walz said during that appearance.
Following the release of Shirley’s video, a spokesperson for Walz responded to inquiries from Fox News Sunday, saying the governor “has strengthened oversight — including launching investigations into these specific facilities, one of which was already closed.”
The spokesperson’s statement emphasized actions taken by the administration to address the allegations, though critics have continued to question whether earlier policy decisions and oversight mechanisms contributed to the scale of the alleged fraud.
As investigations continue at both the state and federal levels, the resurfaced debate comments have added another dimension to the controversy, highlighting the contrast between efforts to expand access to child care businesses and the challenges of ensuring accountability for public funds.
The outcome of ongoing probes is expected to determine the extent of wrongdoing and potential legal consequences for those involved.
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