Full Breakdown
Federal Raids Target Somali-Owned Child-care Centers in Minnesota Amid Fraud Probe
4/29/2026, 11:26:11 AM
Core Event
On April 28 2026, federal agents executed 22 court-authorized search warrants at roughly two dozen locations in the Minneapolis-St. Paul metro area. The warrants focused on at least 10 day-care centers, five autism-service providers, and several other businesses that receive Medicaid funding. Agencies involved included the FBI, Homeland Security Investigations (HSI), the Department of Justice (DOJ), and state and local partners such as the Minnesota Bureau of Criminal Apprehension and the Department of Children, Youth, and Families. Agents were observed using pry bars and a battering ram to enter sites such as the Metro Learning Center, the Quality Learning Center (misspelled “Quality Learing Center”), and the Mako/ Mini Childcare Center. No arrests were reported at the time of the raids.
Background & Context
The operation is part of a federal fraud investigation that began under the Biden administration and was amplified by the Trump administration’s “war on fraud” initiative. In December 2025, YouTuber Nick Shirley posted a video alleging that several Somali-owned child-care facilities were collecting Medicaid subsidies without providing services. State inspections later found the facilities “operating as expected,” but the video spurred national attention, a temporary freeze of $243 million in Medicaid payments, and a series of prosecutions—including the “Feeding Our Future” case that resulted in 65 convictions. State officials have contested the administration’s estimate that fraud could exceed $9 billion since 2018, noting that prosecuted cases total only hundreds of millions of dollars.
Timeline
- Dec 2025 – Shirley’s video released; federal officials begin heightened scrutiny.
- Jan 2026 – Minnesota Department of Human Services cites Metro Learning Center for a background-check lapse; state regulators report most centers are licensed and operating.
- Dec 2025 & Jan 2026 – Similar raids conducted on Medicaid providers; federal officials cite “rampant fraud of U.S. taxpayer dollars.”
- Apr 28 2026 – 22 warrants executed; DOJ confirms ongoing fraud investigation.
Data & Statistics
- 22 search warrants across the Twin Cities.
- At least 10 day-care and 5 autism centers targeted.
- Federal authorities have charged 92 individuals in related schemes since 2021; 67 have been convicted.
- The Trump administration has threatened to withhold up to $259 million in Medicaid funds; the state sued to block the freeze, and a judge denied a restraining order on Apr 6.
Why It Matters
The raids address alleged misuse of federal funds intended for low-income children and families, testing the integrity of Minnesota’s Medicaid program. They also highlight a political clash between Governor Tim Walz, who credited state-federal cooperation, and federal officials who disputed his role. The operation occurs amid broader tensions over immigration enforcement and community relations in a region with a sizable Somali population.
Official Statements & Responses
- Gov. Tim Walz (X): Emphasized that “state agencies caught irregular behavior and reported it” and that “joint investigations work.”
- DOJ spokesperson: Confirmed “court-authorized law enforcement activity as part of an ongoing fraud investigation.”
- HSI: Noted execution of warrants targeting “rampant fraud of U.S. taxpayer dollars.”
- Minnesota Department of Children, Youth, and Families: Praised the collaboration with the Bureau of Criminal Apprehension and federal partners.
Criticism & Opposition
- FBI Director Kash Patel (X) rebuked Walz, stating the FBI and DOJ drafted and executed every warrant.
- DHS Secretary Markwayne Mullin (X) declared Walz has “*zero* credibility on this issue.”
- Republican lawmakers (e.g., Rep. Tom Emmer, Rep. Pete Stauber) praised the federal action and criticized state oversight.
On-the-Ground Reports
Witnesses reported agents entering the Metro Learning Center with a pry bar at 7 a.m., while neighbors expressed unease after recent immigration-related violence. Attorney Jason Steck noted the targeted businesses are largely operated by Somali immigrants and described the sweep as “a particular sweep for fraud.”
Conflicting Reports & Gaps
- Federal officials cite potential fraud exceeding $9 billion; state officials say evidence supports only “hundreds of millions” in losses.
- No public information confirms whether any individuals were detained during the April 28 raids.
- The extent to which state-provided intelligence shaped the warrants remains unclear.
Verbatim Quotes
- “If you commit fraud in Minnesota you’re going to get caught — and that’s exactly what we saw today.” — Gov. Tim Walz, X post
- “Come again?” — FBI Director Kash Patel, X reply
- “This FBI and DOJ with our DHS partners drafted and executed every search warrant today. But go ahead and take credit for our work while we smoke out the fraud plaguing Minnesota under your governorship.” — FBI Director Kash Patel, X reply
- “you have *zero* credibility on this issue.” — DHS Secretary Markwayne Mullin, X post
- “The task force and the DOJ will be relentless in exposing these fraudsters wherever they may be hiding.” — Vice President JD Vance, X post
- “We catch criminals when state and federal agencies share information. Joint investigations work, and securing justice depends on it.” — Gov. Tim Walz, X post
What’s Next
Federal prosecutors have indicated additional warrants may be issued as the investigation expands. Minnesota officials plan to continue sharing information with federal partners, while the state’s lawsuit over the Medicaid funding freeze proceeds in federal court.
