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

HHS also expanded nationwide reporting requirements for childcare funding, requiring justification and evidence before releasing future federal dollars to all states — not just Minnesota.

The department launched a fraud hotline and clarified that states must submit thorough documentation showing legitimate program use before funds are extended.

At the same time, investigations by the Department of Homeland Security (DHS) and the Federal Bureau of Investigation (FBI) were intensified in Minnesota, as federal fraud probes connected to a range of social programs — including nutrition, housing, and autism assistance — have been ongoing in the state since 2022.

Federal law enforcement officials described these efforts as part of a broader effort to ensure the integrity of government funds.

Conflicting Evidence and Ongoing Scrutiny

Despite the dramatic impact of the video, several credentialed news outlets have reported that the picture may be more complicated than the allegations suggest.

For instance, a CBS News investigation found that all but two of the daycare centers mentioned in the video held active licenses according to state records — and that these locations had been visited by state regulators within the last six months.

While inspectors did note licensing violations such as safety and cleanliness issues, the CBS reporting found no recorded evidence of fraud at the time of those inspections.

Additionally, the Minnesota Department of Human Services confirmed that each facility highlighted in the video had undergone routine oversight as part of its licensing process, and that concerns raised by Shirley’s footage were being looked into with standard regulatory procedures.

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