Tim Walz Scrambles With Damage Control After Viral ‘Ghost’ Daycare Video

Supporters of the video argued that the footage highlighted glaring problems: taxpayer money flowing into facilities that seemed inactive, insufficient oversight, and years of under‑enforced program rules.

For many viewers, the visual contrast between official assurances and seemingly empty buildings became the core symbol of broader frustration with government programs.

Government and Official Reactions

State officials responded cautiously but earnestly. The Minnesota Department of Children, Youth, and Families (DCYF), which administers CCAP funding, acknowledged awareness of the viral video and said it was taking concerns seriously.

DCYF Commissioner Tikki Brown noted that inspections of the facilities cited in the video did not uncover immediate evidence of fraud, although the department was continuing detailed reviews and site visits.

Governor Tim Walz and his administration emphasized that the state had already been working on fraud prevention efforts and strengthened oversight of childcare programs long before the video surfaced.

A spokesperson noted ongoing investigations and past referrals of suspected cases to law enforcement, as well as legislative requests for broader enforcement authority.

Nevertheless, federal authorities escalated their response. The U.S. Department of Health and Human Services (HHS), which oversees much of the federal funding for CCAP, announced that it was freezing federal child care payments linked to Minnesota until the state could provide detailed documentation proving the funds were being used legitimately.

Deputy Secretary Jim O’Neill said the action was taken in response to “serious allegations” raised by the video and directed Minnesota to conduct comprehensive audits of the centers featured, including attendance records, licensing data, inspection reports, and complaint histories.

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