Full Breakdown
Federal Raids Target Minnesota Child-Care Fraud
4/30/2026, 9:03:46 AM
Raid Sweep and Immediate Details
On April 28 2026, federal agents executed 22 search warrants at Minneapolis childcare centers, autism-service providers, and related residences. FBI, Homeland Security Investigations and the Minnesota Bureau of Criminal Apprehension seized boxes of records and devices; no arrests were reported.
Background and Political Context
The fraud probes began under the Biden administration and intensified after President Donald Trump cited alleged misuse of federal funds as justification for “Operation Metro Surge,” a massive immigration enforcement effort. The pandemic-era Feeding Our Future school-meal program later became the focus of a $300 million fraud case that produced 65 convictions, most of them of Somali-descent defendants. Trump’s social-media attacks on Minnesota’s Somali community heightened scrutiny.
Scale, Key Actors, and Ongoing Cases
State auditors once flagged $100 million annual fraud in a childcare program. Federal prosecutors now cite $18 billion in Medicaid-funded child-nutrition and autism services since 2018, with First Assistant U.S. Attorney Joe Thompson estimating that “half or more” may have been stolen. Nearly 80 defendants have been charged since 2022; 92 individuals face charges overall, and 67 convictions have been secured. Operation Metro Surge deployed about 3,000 officers and led to over 4,000 arrests, the majority Hispanic.
Official Responses
Governor Tim Walz praised the joint effort, emphasizing that cooperation between state and federal agencies is essential for catching criminals. The Department of Homeland Security said the probe seeks to protect taxpayer money and pledged that no stone will be left unturned. Attorney General Keith Ellison confirmed the Medicaid Fraud Control Unit participated in searches at five sites.
Criticism, Opposition, and Conflicting Reports
Trump called Somali immigrants “garbage” and “low IQ,” framing the probe as a crackdown on a “hub of fraudulent money laundering.” State inspectors, however, found the childcare centers highlighted by influencer Nick Shirley to be “operating as expected” with no fraud evidence. Thompson’s $18 billion theft estimate exceeds documented losses, and most arrested individuals were Hispanic, not Somali.
Verbatim Quotes
- “What we see in Minnesota is not a handful of bad actors committing crimes. It’s staggering, industrial-scale fraud.” — Joe Thompson, First Assistant U.S. Attorney
- “Somali gangs are terrorizing the people of that great State, and BILLIONS of Dollars are missing. Send them back to where they came from,” — Donald Trump, social media
- “The American people deserve to know how their taxpayer money was abused. … No stone will be left unturned,” — Department of Homeland Security
- “We catch criminals when state and federal agencies share information.” — Gov. Tim Walz
Outlook
Federal prosecutors have not announced new indictments, but the investigation remains active. The House Oversight Committee, chaired by Rep. James Comer, plans hearings with Governor Walz and other officials. State agencies say they will keep sharing information, and DHS pledged continued audits of Medicaid and child-care subsidies.
