Agents with search warrants target Minnesota in public fraud probe

BY MARK VANCLEAVE AND ALANNA DURKIN RICHER, ASSOCIATED PRESSWednesday April 29, 2026

Federal investigators swept through multiple locations in Minnesota on Tuesday, carrying out searches and removing boxes of records and other material in what authorities described as an ongoing fraud probe into publicly funded programs for children.

State and federal agents were seen at childcare centers in the Minneapolis area, though officials released no information about the suspected crimes. KSTP-TV reported that one team arrived with a battering ram.

The raids come months after right-wing influencer Nick Shirley circulated a video alleging that members of Minnesota’s Somali community were using fake childcare centers to pull in federal subsidies. The claims drew the attention of the Trump administration and conservative activists, even as inspectors said the centers were functioning normally.

Minnesota has long wrestled with fraud scandals. At least 65 people, many of them Somali Americans, have been convicted in a scheme that stole from a federal food program intended to feed children. That case began under the Biden administration.

In a separate matter, a federal prosecutor said in December that as much as $9 billion in federal money supporting 14 Minnesota-run programs since 2018 may have been stolen.

Democratic Gov. Tim Walz, who has faced criticism for not doing enough to crack down on fraud, said he welcomed the Tuesday raids. The state’s child welfare agency said it had provided key information to law enforcement in an effort to “hold bad actors accountable.”

“We catch criminals when state and federal agencies share information. Joint investigations work, and securing justice depends on it,” Walz said.

The searches were carried out at daycares, businesses and some homes, according to a person familiar with the matter who spoke to The Associated Press on condition of anonymity because they were not authorized to discuss the investigation publicly.

Several state and federal agencies took part, including the Department of Homeland Security. At least two of the targeted sites appeared in Shirley’s video. Officers from Minnesota’s Bureau of Criminal Apprehension were seen removing boxes from some of the properties.

“The American people deserve to know how their taxpayer money was abused. … No stone will be left unturned,” DHS said, adding that local and state authorities cooperated with the operation.

On social media, FBI Director Kash Patel taunted Walz, saying he was taking credit “while we smoke out the fraud plaguing Minnesota under your governorship.”

Jason Steck, an attorney who represents childcare centers, said some of the businesses targeted in the searches were run by Somali immigrants. He said they were not among his clients.

“A few childcare centers, a few autism centers, a few healthcare agencies of some type,” Steck said, describing the effort as a “particular sweep for fraud.”

Candace Yates, executive director of Child Care Aware of Minnesota, a nonprofit that supports early childhood educators, said the public attention reflects poorly on the sector.

“The majority are in business to do good business. You’re going to come across individuals who try to capitalize on systems that are broken and need to be fixed,” Yates said.

Walz abandoned his bid for a third term in early January as President Donald Trump kept up relentless attacks tied to fraud allegations and Minnesota’s Somali community. Trump has used dehumanizing language, calling Somali immigrants “garbage” and “low IQ.”

Tensions between Walz and the federal government escalated further during an extraordinary immigration crackdown that left two people dead before Operation Metro Surge was scaled back in February.

In February, Vice President JD Vance said the administration would temporarily withhold $243 million in Medicaid funding from Minnesota over fraud concerns. The state sued, warning the move could force cuts to health care for low-income families, but a judge on April 6 declined to issue a restraining order.

Walz told Congress in March that he wanted to cooperate with the federal government on fraud investigations, though he said the immigration surge had made that harder.

“The people of Minnesota have been singled out and targeted for political retribution at an unparalleled scale,” he said at the time.

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Durkin Richer reported from Washington. AP reporters Steve Karnowski in Minneapolis and Corey Williams and Ed White in Detroit contributed to this story.